Landed cost refers to the total cost of a product once it has arrived at a buyer’s door. This includes the purchase price, transportation fees, customs, duties, taxes, insurance, currency conversion, crating, handling and payment fees. Tracking these costs manually can be tedious and prone to errors. Automating landed cost tracking through ERP systems can make the process more efficient and accurate. In this blog post, we’ll explore what ERP systems are, how they can automate landed cost tracking, and real-world examples of their implementation.

Enterprise Resource Planning (ERP) systems are software applications that integrate various business processes into one unified system. They streamline and automate tasks, making it easier for businesses to manage their operations. ERP systems can handle a range of functions, from accounting and human resources to inventory management and landed cost tracking.

Accurate landed cost tracking is crucial for businesses. It provides a clear picture of the total cost of goods, helping businesses set competitive pricing strategies and identify cost-saving opportunities. Without accurate landed cost tracking, businesses may underestimate their expenses and overestimate their profits, leading to financial discrepancies.

Manually tracking landed costs can be challenging. It involves juggling numerous variables and can lead to errors. A small mistake in calculating duties or taxes can result in significant financial loss. Manual tracking also requires a lot of time and resources, which could be better spent on other aspects of the business.

ERP systems automate landed cost tracking by integrating all cost-related data into a single platform. They can automatically calculate and update landed costs based on real-time data, reducing the chances of errors and saving time. The system also provides a clear overview of all costs, making it easier to analyze and optimize expenses.

Automating landed cost tracking through ERP systems comes with several benefits. It increases accuracy, saves time, and reduces the risk of financial discrepancies. It also provides valuable insights into business expenses, helping companies make informed decisions. Furthermore, it allows for greater transparency, which can improve relationships with stakeholders.

Many businesses are already reaping the benefits of ERP systems. For instance, a global manufacturing company was able to save millions in operating costs by automating their landed cost tracking through an ERP system. Another example is a retail company that significantly reduced stock discrepancies and improved profitability by implementing an ERP system.

Choosing the right ERP system depends on your business needs. Some important factors to consider include the system’s functionality, ease of use, scalability, and cost. It’s also important to consider the vendor’s reputation and the level of customer support they provide.

Automated landed cost tracking through ERP systems is revolutionizing the way businesses manage their costs. It’s providing businesses with the tools they need to accurately track and analyze their expenses, leading to improved financial management and increased profitability. As technology continues to evolve, we can expect to see even more advanced features and benefits from ERP systems in the future.