Quoting and cost management in a manufacturing SMB: a comparison?
Hi everyone,
I’m looking for some perspective from people working in small-to-medium manufacturing businesses (SMBs/SMEs). For context, I am based in Italy.
I work for a small company that produces flexible packaging and plastic films (around 20-25 people in total, including plant workers). At the same time, we manage paper packaging via outsourcing (subcontracting/toll manufacturing), dealing with paper mills and external third-party vendors for the various production phases.
In this company, the owner and I are responsible for calculating all prices—both for internal production and external subcontracting. The issue? We don't use dedicated pricing or cost estimation software. We only use a basic ERP system for formalizing order confirmations, delivery notes, invoices, etc.
To survive and keep my sanity, I created my own Excel spreadsheets that automatically calculate costs for all production phases and external processing. On the other hand, the co-owner (the owner's partner) still does everything by hand using pen, paper, and sticky notes.
Our workflow looks like this: I calculate the raw costs, the owner reviews them, and then they confirm or adjust the markup to apply. At the end of the day, she sits down and double-checks every single cent of what I calculated.
I wanted to ask you:
- Do any of you deal with this kind of daily chaos in small packaging companies or similar manufacturing industries?
- How are prices calculated in your companies? Are you stuck with Excel like me, or do you use dedicated pricing/estimating software? (I’m asking specifically about small production companies, say 5 to 50 employees).
- Do your owners also micromanage and check everything at the very last second before a quote is sent out, or do you have full autonomy?
I'd love to know if I'm the only one living in the dark ages or if this is just the standard reality for small family-owned businesses worldwide. Thanks!