If your company purchases a lot of goods from foreign suppliers, landed costs make a significant part of your total costs. Nobody would argue that these costs management is important for your company.
Financial practices show that accurate analysis of landed costs allow managers to make solid decisions which can impact a company’s financial results.
So, below you find 6 pros to consider implementing an automated solution for landed costs management.
1. Calculate the prime cost more accurately.
The solution enables you to allocate each and every cent of landed costs accurately and reasonably:
- Select dimensions flexibly (according to weight, volume, item number, total cost, etc.).
- The software will not allow you to lose any unallocated lines.
2. Manage profitability promptly
Real-time data on landed costs allows fast decision making. For example, if you see that your landed costs are higher than expected, there are options to counter this:
- Promptly increase the sale price to preserve the provided profitability.
- Cover the price rise with existing profit and look for alternatives as soon as possible.
In either case, you are the one to manage the situation. The more promptly you get information on landed costs, the better you can manage possible fluctuations in your profit.
3. Lower the risk.
The automated allocation of landed costs leaves no place for manual work, thus eliminating any human factor errors. The integrity of financial data increases significantly. And the likelihood of having financial reports with errors or experiencing any relevant risk decreases drastically.
4. Save time significantly.
Depending on the size of your accounts, you can accelerate the allocation of landed costs up to 25 times, and the cancellation of these costs is even up to 200 times faster. Spend the saved accountancy time for more valuable and higher end-tasks.
5. Recoup the investments fast.
We found out that an accountant spends 3 hours on the allocation of landed costs lines for 100 accounts, and the automated process can do this in approximately 10 minutes. The manual cancellation of one line for 100 accounts takes around 5 hours, and the automated solution takes only 2 minutes. Evaluate arithmetically the time (and money) saved for your company.
The solution is simple and intuitive, it does not require additional training. Moreover, the implementation is fast, so you‘ll be able to use right away. Quick payback is guaranteed.
6. No need to worry about updating and maintenance.
The solution is well tested, so it works flawlessly. Additionally, we commit to develop it and adapt to any updates of Microsoft Dynamics 365 for Finance and Operations.
If you are interested in optimizing landed costs management in your organization, get in touch with our team.