Analyze Margin from Simulated Costs in Margin Analysis Dashboard

The Margin Analysis Dashboard can now assess profitability impact from user-defined or simulated costs.

You can use the Margin Analysis Dashboard to calculate the effect of simulated costs on historical cost of goods sold and margins. The dashboard helps you identify product categories or products that would face margin pressure if simulated costs were implemented and determine which dimensions, such as products, regions, or channels, are most sensitive to cost changes.

Simulated Cost Margin Analysis Results:
Simulated Cost Margin Analysis Results

Prior to Release 12.2.14+, simulated-cost margin analysis was available through the Margin Analysis Report while the dashboard focused on actual transaction costs.

Steps to enable and configure

Ensure Oracle Enterprise Command Center Framework Release 12.2 V14 or later is available for this functionality and complete the setups to enable the Cost Management Command Center.
Cost Management Command Center Setup

Tips and considerations

  • Use simulation codes that are meaningful to business users so comparisons are easy to interpret.
  • Review both summary tiles and dimension-level charts to find where margin pressure is concentrated.
  • Validate simulated-cost assumptions before sharing dashboard results as recommended pricing or sourcing actions.

Key resources

  • Oracle Cost Management User's Guide
    • Chapter: Oracle Cost Management Command Center
      • Topic: Margins
    • Chapter: Setting Up Oracle Cost Management
      • Topic: Setting Up Cost Management Command Center
      • Topic: Setup and Configuration Steps for Cost Management Command Center
      • Topic: Cost Management Profile Options