Demo Role
ECost Impact Analysis
Simulate supplier price changes and see profit impact instantly.
AI Procurement Copilot Insight
Margin Risk
Summary
An 8% increase in pork raw material reduces Jumbo Hotdog margin from 28% to 22%.
Key Risk / Opportunity
Cost shifts have pushed two products below target profitability.
Business Impact
Lost margin equates to ₱120K lower net profit this month.
Recommended Action
Review supplier pricing with FreshMeat Corp or consider formulation optimization.
Simulation
Current unit cost: ₱285 /kg · Supplier Premier Meat Trading Corp.
Before vs After
Material unit cost
Before: ₱285
After: ₱308
Total batch cost
Before: ₱330,619
After: ₱344,572
Cost per unit
Before: ₱83
After: ₱86
Gross margin
Before: -42.5%
After: -48.5%
Monthly profit impact (est.)
−₱1,116,288
Based on 320,000 packs/month.
Recommended action
Renegotiate supplier price
Renegotiate supplier price
AI Procurement Insight
A 8% increase in pork raw material reduces Jumbo Hotdog margin from -42.5% to -48.5%. If monthly volume remains the same, estimated monthly profit impact is ₱1,116,288. Procurement should consider: Renegotiate supplier price.