Cost to Source
Inbound Landed Costs for Raw Material, Purchased Goods + Commodities
Choosing a vendor partner is often more complex than just finding the cheapest price for your materials. Inbound landed cost is the total price of materials, goods, or commodities when it is received at your warehouse. So, while purchasing raw materials and shipping large volumes leads to discounts, inventory and warehouse costs could skyrocket when those goods arrive onshore. You need deep inbound landed cost insights before agreeing to import goods and materials.
ImpactECS gives you the ability to calculate detailed FOB and landed costs and creates a central location to evaluate and manage suppliers. Establish a data-driven procurement and sourcing program that identifies the hidden costs in your inbound supply chain.
Calculate costs of the materials and resources used to make the items you sell with ImpactECS
- Calculate and analyze detailed FOB and Landed Cost answers: Determine free-on-board costs to source materials including purchase price, royalties, insurance, broker fees, tariffs and duties, taxes, shipping and transportation fees, inventory costs, overhead costs, and more.
- Evaluate and manage suppliers: Maintain supplier-level details on costs, terms, pricing, and discounts to optimize supplier programs, compare quote performance, and drive vendor selection.
- Optimize inbound transportation costs: Gain line of sight into the actual or simulated costs accumulated when moving products around the network.
- Simulate procurement cost performance: Adjust costs, rates, or volumes to balance product costs, prices, and service levels and identify breakeven levels.
- Data-driven procurement processes: Establish programs to monitor commodity prices, ensure suppliers are honoring pricing agreements, unlock detailed variance insights, and improve supplier communication.
- Manage demurrage and detention costs: Assess and simulate the real costs of materials and commodities that are delayed in port at the SKU level.
Video: The Value of Costing in Changing Business Environments
Recent events have taught finance and costing leaders that unpredictability is the new norm—making effective cost planning a necessity. Cost data impacts organizational decisions from quoting new business, selecting vendors and suppliers, planning production, and servicing customers. The most innovative teams have enabled costing models that generate planned, forecasted, historical, and simulated cost data to drive commercial and operational decisions.
WATCH THIS SESSION and learn about use cases of cost analytics models that predict how market shifts are cost changes that impact profits, evaluate performance compared to benchmarks, determine the success of quotes to actual performance, and establish targeted cost management programs.
Resources
Get Quick Insights and Best Practices
Visit the Video Library >Is Your Product Costing Process Healthy?
Get your Score >Creating a Cost-Focused Culture
Watch the Webinar >Guide to Implementing Cost Systems
Watch the 30-min Q+A >Cost Allocations: Gaining Actionable Insights
Read the Article >Ready to see ImpactECS in action?
Get a glimpse of how we help companiesunderstand their costs and profits