AboutEric Hofer Expertise Over 27 years experience, with 17 in international FMCG in back office operations and in field sales and data collection, including design, development and deployment of Handhelds, Marketing Equipment (Service, Tracking and Return on Investment), reporting and Vending management. Have participated on the launch of operations in new markets, and re-engineered the back office in several countries.
Experience Designed and led the development and deployment internal ERP system for Pepsi used in On-Premise/Vending in 13 markets.
Designed 2 handheld systems, the latest is now deployed in 4 markets internationally.
Re-engineered the back office functions (settlements, despatch, invoicing, credit control, etc) for over 20 snack, confectionary and beverage operators.
Developing software: Progress, VB, Access, C, Sybase, SA
Organizations Innovative-Selling Solutions
Publications BudapestSun
Education/Credentials State University of New York - BA Economics
NYU - Courant - Graduate work - Computing
Past/Present clients PepsiAmericas
PepsiCola International
PepsiCola Company
British Steel
British Telecom
Britvic (Pepsi's bottler in the UK)
AT&T
BellSouth
Mars Overseas Bottling
Pepsi France
Matutano (Frito-Lay Spain)
Frito-Lay
Pepsi Foods International
Chase Manhattan Bank
Kidder Peabody
National Power
SmithKline Beecham
Mars Overseas Bottling (Pepsi Azerbaijan)
A&P Bottling (Pepsi Serbia & Montenegro)
Iberia Bottlers (Pepsi Georgia)
Question Do you have a sample you might be willing to share? I'm looking for at least a good example of a COGS model. I'm launching a functional bev. Thank you.
Answer Peter,
Sorry; it's never been my specialization and while I've had COGs and PVC (Product Variable Costing) explained out many times, I'd have to dig...
I would think though that you can tease out the variables easily:-
- raws
.. labels
.. bottles
.. closures
.. syrup
.. other (sugar, eg.)
.. co2
- fixed mfg
.. hours run (overall plant to product run allocation)
.. change over
.. clear down/slag
- units produced
-- run off and run up
.. dropped/destroyed (no-qa)
.. sampling/testing (qa)
- immediate warehousing
.. floor costs per pallet placement x days
.. immediate transport (alloc per pallet)
You might also recombine such with previous run costings; to arrive at a current average COGs for doing your Operating Review (something I do have experience with); and further, to look at Primary Transport and Secondary warehousing.
Destruction of stales, recalls, etc. I think are usually not considered in COGs.
Further, on change overs, there are some opportunities to switch packaging - eg. filling pre-mix after / during a run of say PET - these should be shared as fairly as possible.
Its critical if you have external auditors, that you can support your decision as to how you derived your computations; and/or if you also have some sort of gov't/utility reporting (e.g. water consumption taxes) that back in based upon volume (and offsetting sewerage that isn't consumed).
