🇦🇺Australia

Cost Estimation Errors from Faulty EBOM

2 verified sources

Definition

EBOM lacks integrated cost and supply data, leading to poor purchasing and sales pricing decisions.

Key Findings

  • Financial Impact: 2-5% revenue loss (AUD 50,000-200,000/year for mid-size firm) from bad pricing or lost deals
  • Frequency: Per sales quote or procurement cycle
  • Root Cause: Manual EBOM without live supplier/cost integration

Why This Matters

The Pitch: Australian robot firms suffer AUD 100,000+ annual revenue loss from BOM-based pricing errors. Real-time EBOM costing automation fixes this.

Affected Stakeholders

Sales Managers, Procurement Buyers, Cost Accountants

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

BOM Errors Causing Material Waste

AUD 20,000-100,000/year in excess inventory and rush orders (industry typical 2-5% of material costs)

Rework from Inaccurate EBOM Specs

AUD 10,000-50,000 per major robot project in rework labor and scrap (20-40 hours/assembly at AUD 150/hr)

Production Delays from BOM Bottlenecks

AUD 5,000-15,000/day in idle equipment (40 hours/week at AUD 300k annual machine cost)

Cost of Poor Quality

AUD 20,000-100,000/year in reduced scrap costs via automation (industry benchmarks for manufacturing defects)

Capacity Loss

AUD 50,000-200,000/year in lost throughput (labour and equipment idle time)

Cost Overrun

AUD 40 hours/month overtime at AUD 50/hr = AUD 24,000/year

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