All about Landed Cost Formula

Just how much are you spending on importation? Is it worth it?

Starting a manufacturing or retail business can be tricky. You need to consider where you source your raw material supplies (manufacturing) and ready-for-sale products (retail). Clients who source materials from a different part of the globe are called Importers. They may experience miscalculation of pricing of goods the first time around because of improper cost accounting. As an importer, you should know that the cost of materials you buy is not the only amount you pay. There are other charges you may not know of yet. This is where the Landed Cost Formula comes in.

What is Landed Cost Formula?

In a nutshell, Landed Cost Formula is the full amount you spend per imported good or material. This takes into account the following: Price of Imported Good, Freight Costs, Insurance, Storage Costs, Customs Duty, Tax, Customs Clearance, and more.

Clothing Manufacturing Business

Let’s say you are a clothing manufacturing business and you need to source out raw materials from China. You will definitely need cloth, sewing materials, and the like. If you check out your supplier’s prices, they seem reasonable. However, because that is not the only money you cash out upon delivery, it is important for you to understand other expenses you will be paying. Your Chinese supplier may not know the Customs Duties and Taxes in your state, so you may talk to your customs department for more information.

How Do I Calculate my True Landed Cost?

There are some clients who complain that they only get to know how much they really spent long after their shipments have arrived. Factors like foreign exchange rates, additional customs payments, and FOB can destroy your initial costing. This is why you need to have a clear idea of all costs you may be incurring and use estimates in your computations. To make smarter decisions, Enterprise Resource Planning (ERP) Software is readily available to help you do just that and focus on running your business instead of worrying about cost accounting.

How ERP Consulting LLC Can Help

ERP Consulting LLC has a dynamic knowledge on different businesses that plan to operate with global connections. We help to install Microsoft Dynamics GP in Pataskala Ohio so you can better choose which materials to source for your products. Our firm also offers support and after-sale services so you need not worry about improper guidance. Check out our Web site for more information at erpconsultingllc.com or give us a call at 740-951-0220.

Microsoft Dynamics GP will help you gain better control on all aspects of your business. This includes management of costs, inventory, accounting, human resources, customer relationship management, and more. Call us today and take the next step to your business’ growth!

5 Advantages of ERP Software

If you want an all-in-one software for all workflow across your business’ departments, ERP Software Systems is definitely the solution for you! Whether you import raw materials (manufacturing) or retail products from abroad, your company will surely be better off with ERP solutions. Here are the reasons why:

• Integration to a Single Software Application.

  All the processes in all departments like Finance, Accounting, Human Resources, Logistics, and Marketing/Sales will be shown to you on one screen.

• Easy Functions.

  You will be able to check orders, track inventory, see improvements in revenues and sales, and more. This is especially important to import and export clients who need to always be on the lookout for more income and minimize on unnecessary expenses.

• Unified Reporting System.

  With all the work across all departments in one application, you will have a better working knowledge of what is going on and can better analyze statistics.

• Collaboration Across Departments.

  ERP solutions will give you better visibility across all departments and will enable faster and smarter work output. Your employees can work smarter instead of harder and you will thank ERP for enabling them to do so.

• Business Intelligence Functions.

  Now your ERP system will be able to give insight for you to have better decisions. It will give you insight on how to improve a current business process, as well as identify areas for improvement.

Running a business can be difficult at the start, but if you run it smart, you can focus on growing it more than running it. Getting smart tools to aide you will allow you to earn more with less effort. If you’re looking for ERP solutions, ERP Consulting LLC can help grow your business!

We offer Microsoft Dynamics GP in Pataskala Ohio that overlooks all including Financial Management, Languages, Business Intelligence and Reporting, Human Resource Management, Supply Chain Management, Configuration and Development, Customer Relationship Management, and Project Management.

About ERP Consulting LLC

We offer dynamic ERP solutions in Pataskala, Ohio. Our President and Manager, Michael J. Taranto, has had 25 years of success in the consulting business where he offers his experience in all aspects of running a successful business. For more information about us, check out our Web site at erpconsultingllc.com or give us a call at 740-951-0220. Let us know how we can help you grow your business and earn more today!