For businesses that frequently source goods from foreign suppliers, landed costs constitute a major portion of total expenses. Effective management of these costs is critical to maintain profitability and competitiveness. Automated landed cost management solutions offer a powerful way to streamline this complex process, ensuring accurate and efficient cost allocation. Here are six compelling reasons to adopt such a solution:
1. Accurate Prime Cost Calculation
Automated systems provide precise allocation of every component of landed costs, ensuring no expenses are overlooked. Key benefits include:
- Flexible Allocation Dimensions: Costs can be allocated based on weight, volume, item number, total cost, or other relevant factors.
- Elimination of Errors: The system ensures that no cost lines are left unallocated, offering a complete and transparent view of expenses.
2. Real-Time Profitability Management
Access to real-time landed cost data allows for rapid and informed decision-making. For instance:
- Adapt Pricing: If costs increase unexpectedly, you can adjust sales prices promptly to maintain margins.
- Explore Alternatives: Identify more cost-effective options without delay.
This level of control empowers businesses to proactively manage profitability, even in volatile markets
3. Minimized Risk
Automation removes the risk of human error in landed cost allocation, significantly improving the reliability of financial data. This ensures:
- Data Integrity: Accurate financial reporting with minimal discrepancies.
- Reduced Compliance Risks: Fewer errors in reports lower the likelihood of financial audits or penalties.
4. Significant Time Savings
Automated solutions drastically reduce the time spent on manual landed cost calculations:
- Faster Allocations: Complete landed cost allocations up to 25 times faster than manual methods.
- Instant Cancellations: Cancel cost lines up to 200 times faster, freeing up valuable time for higher-priority tasks.
This efficiency enables accountants and finance teams to focus on strategic responsibilities rather than repetitive processes.
5. Fast ROI
The efficiency gains translate directly into cost savings. For example:
- Time Saved: Automating 100 accounts can reduce allocation time from 3 hours to just 10 minutes.
- Ease of Implementation: The solution is user-friendly, requiring no extensive training.
- Quick Deployment: Businesses can start benefiting from the system almost immediately.
With a proven track record of quick payback, this investment is both practical and profitable.
6. Hassle-Free Maintenance
Automated landed cost solutions are designed to function seamlessly:
- Reliable Performance: Well-tested systems ensure consistent and error-free operation.
- Future-Proof: The solution is regularly updated to integrate smoothly with platforms like Microsoft Dynamics 365 for Finance and Operations.
Businesses can rely on the software without worrying about maintenance or compatibility issues.
Why Should You Choose This Solution?
Investing in an automated solution for landed cost management is a strategic move to enhance your business’s accuracy, efficiency, and profitability. The impact of landed costs to your business might be significant and need to be managed carefully, By eliminating human error, providing real-time insights, and streamlining complex processes, automation empowers you to make smarter decisions and maintain healthy profit margins. It minimizes risks, saves valuable time, and delivers a fast return on investment, all while positioning your organization for future growth. Take control of your landed costs now—contact our team to start optimizing your operations today.
