Whilst Brexit may have been displaced from the minds of the media of late, it is still very much in the minds of the management teams at manufacturing companies that have to deal with non-UK businesses in their supply chain.
The two key elements of this supply chain arrangement have always been the same, Brexit or not. Those are – ensuring accurate delivery dates and collating accurate costs.
The EFACS E/8 Landed Costs module is of course concerned with collating accurate costs. So, what do we mean by landed costs?
Landed costs represents the total cost of purchasing, transportation, warehousing and distribution of a product; be it a raw material, a semi-finished item or a finished article.
The EFACS E/8 Landed Costs module allows the capture of these indirect costs so they may be analysed and ultimately incorporated into the total cost of the product.
Any number of indirect overhead cost types may be defined, such as transportation charges, excise duty, other taxes, insurance charges and WEEE costs. These costs need to be taken into account when calculating the unit cost and therefore profitability for a particular part.
At a time when companies’ supply chains are becoming more and more complex, due to manufacturing and the sourcing of goods from overseas, the EFACS Landed Costs module ensures accurate profit and loss recording by accounting for all costs incurred, regardless of whether these costs are known at the time of receipt or at a later date.
Moving forward, Brexit has the potential to shake things up in the international supply chain, with regard to potential procedure and tariff changes. For this reason, it is advisable that your ERP system is flexible enough to enact change, as and when it needs to happen.
EFACS E/8’s ADAPT Toolkit allows you to make changes to the system to meet the changing realities of trading abroad. Companies that have to wait for updates or patches from their ERP provider to enact legal/procedural/tax changes may find themselves at a disadvantage.
To find out more about Exel’s Landed Costs module and all the benefits it can bring to your organisation, click here.