Intense competition often results in low profit margins for products and a lack of cost advantages, making it challenging to compete on pricing with leading companies.

Extended new product development cycles, complex product structures and configurations, and frequent design changes make cost control very difficult. As a result, target cost overruns are common as products approach the production stage.

Many enterprises lack a systemized procurement and cost control process, especially in product planning and design stages. High barriers exist between the cost management department and other business departments, resulting in poor collaboration.

In many cases, early BOM outputs are untimely, data quality is inadequate, and activities such as target cost setting, sourcing, and price changes are primarily manual. This manual approach leads to inefficiencies, decentralized offline data management, inconsistent rules, and a lack of transparency in cost control. Traditional cost accounting systems struggle to meet cost management requirements for the product creation process.