In a previous article on the impact of landed costs, we explained why landed costs matter and when automation becomes essential. In this article, we outline the key requirements for choosing an automated solution that fits your landed cost process and controls.
Functional requirements for landed cost management
You need a solution that allocates Landed costs quickly, accurately, and flexibly—without sacrificing control over postings and approvals. When evaluating a landed cost solution, assess the following capabilities:
- Does the solution support the allocation bases you require?
For example: weight, volume, item quantity, or equal split across line items. - Can the system automatically allocate landed costs across multiple suppliers and invoices?
- Can you partially allocate these costs when only part of the shipment has been received or invoiced?
- Can you adjust allocations safely when costs, quantities, or receipts change?
- Does the solution support full reversal (rollback) of landed cost postings when needed?
This is critical, yet only a few vendors support true reversals with a complete audit trail.
Also evaluate these practical operational factors:
- Ease of use for day-to-day users.
- Fast processing and low-click execution.
- Controls that reduce errors and strengthen auditability.
- An intuitive graphical user interface (GUI).
Integration and long-term fit
The landed cost solution must integrate cleanly with your enterprise resource planning platform (ERP) to avoid manual workarounds and duplicate data. In most cases, an ERP-native extension is the safest option because it inherits your core data model and controls.
Clarify how updates are handled. You shouldn’t need to repurchase or re-implement the solution every time your ERP is upgraded—especially if erp system integration is meant to stay stable release to release.
Vendor reliability
Vendor reliability is hard to quantify, but it directly affects delivery risk and long-term value. Verify this upfront and include the following in the agreement:
- Is there a credible product roadmap that keeps pace with regulatory and market requirements?
- Will you receive responsive, knowledgeable support with clear SLAs and escalation paths?
Finally, review feedback on this software from organisations similar to yours. Pay particular attention to verified references, relevant certifications, and evidence of successful implementations.
