In the industrial landscape of 2026, continuing to calculate profitability using standard costs is, at best, a nostalgic estimate. With extreme volatility in raw material and energy prices, the margin of a product coming off the line at 10:00 AM can be radically different from one at 4:00 PM.
If your current BI only gives you a static snapshot of “what it should have cost,” you’re operating blind. The true competitive advantage lies in Dynamic Margin, a capability that is only possible when data workflow logic connects the shop floor with financial strategy.
1. From Theoretical Cost to Real Costing (Actual Costing)
Most manufacturing companies operate under standard costing models, but in an Industry 5.0 environment, this model falls short. Variability in machine performance and micro-stoppages constantly affect labor cost per unit.
An intelligent data infrastructure doesn’t just average; it captures the exact cycle time of each order. By integrating data streams that detect deviations in real time, the system can alert on margin erosion while the batch is still in production. This transforms BI from a forensic report into a tool for active operational management, allowing processes to be adjusted before losses become irreversible.
2. Energy as a Variable Raw Material
Traditionally, energy has been treated as an indirect expense (overhead). However, according to reports by McKinsey & Company, energy efficiency is now the biggest driver of profitability in the chemical and metallurgical sectors.
Through data workflows, it is possible to treat electricity consumption as a direct component of the bill of materials. By connecting machine sensors with wholesale electricity market prices, an advanced data platform can recalculate the margin of each product based on the exact moment of its manufacture. This allows plant managers to make critical decisions: Is it profitable to keep the third shift running today, or is it better to move production to a time slot when energy is 30% cheaper?
3. Synchronizing the Supply Chain and Pricing Strategy
Profitability doesn’t end at the factory gate. Logistics and the supply chain are more fragmented than ever. According to Gartner’s Smart Manufacturing trends, integrating external data is vital for resilience.
Modern data workflows enable entity resolution between the ERP and logistics providers. If maritime transport costs suddenly rise or a batch of raw material arrives with a scarcity surcharge, AI can automatically propagate that cost increase across the entire margin structure. The result is a sales team that doesn’t work with outdated price lists, but with profitability information updated minute by minute, protecting the company’s net profit.
Conclusion: Information Is Your Most Valuable Asset
Success in manufacturing today is not measured by how much you produce, but by the precision with which you know your costs. Moving away from disconnected spreadsheets and toward an integrated data infrastructure is the first step to regaining control of your margins.
Start focusing your BI with Intemic technology. Leave assumptions behind and begin operating with a clear, actionable view of your real profitability.
