Apply Compound Charges to Food and Beverage Orders with Microsoft Dynamics 365 Supply Chain Management

The food and beverage industry, known for its tight margins and high competition, is always on the lookout for innovative strategies to manage costs and boost profitability. Compound charges, dynamic surcharges and minimum charge policies are reshaping how businesses approach billing and cost recovery. This blog explores how these financial tactics are making a significant impact.

Dynamic surcharges help in an industry where prices for ingredients fluctuate and demand varies seasonally. This approach, which calculates surcharges on the full order price including any prior surcharges, brings flexibility and accuracy. By adjusting pricing in real-time to cover all costs—packaging, delivery, perishable goods handling—dynamic surcharges ensure businesses stay competitive. This transparency and fairness in pricing solidify customer trust and loyalty.

Customized Features for the Food and Beverage Sector

The ability to set up automatic charges based on specific units of measure (UoM) is critical for accurate billing, especially considering the frequent UoM conversions required in this industry. Microsoft Dynamics 365 Supply Chain Management supports various types of compound surcharges including sequence, compound, value base, and unit-specific line charges. This flexibility allows businesses to include all relevant costs in their billing, from specific sales taxes to line charges, ensuring comprehensive cost recovery.

Furthermore, the system’s capability to configure auto charges at the line level based on a specific UoM ensures that charges are applied accurately and fairly, reflecting the actual quantity of goods exchanged. This precision is valuable in the food and beverage industry where ingredient and packaging costs can vary significantly.

Minimum surcharges, through the introduction of period charges, provide a strategic tool for maintaining profitability. They enable businesses to apply charges on orders that don’t meet predefined criteria over a certain period, such as minimum delivery fees or order quantities. With options for monetary threshold, quantity threshold, and a combination of both, companies can tailor these charges to ensure each order contributes to profitability.

The Benefits

• Strengthening Financial Foundations
  • These surcharge strategies ensure every order contributes to the bottom line. This approach not only secures financial health but also paves the way for business growth and innovation.
• Building Customer Relationships on Fairness
  • Adjusting prices according to actual costs fosters a fair pricing environment. Customers appreciate transparency, leading to stronger relationships and enhanced loyalty—an invaluable asset in today’s market.
• Streamlining Operations
  • With a reliable financial strategy in place, businesses can focus on what they do best: delivering exceptional food and beverage experiences. This includes optimizing supply chains, minimizing waste, and exploring new markets with confidence.
• Making Informed Strategic Decisions
  • Period charges for orders that don’t meet specific criteria encourage strategic thinking about pricing and promotions, especially during peak seasons. This ensures a steady revenue stream and helps businesses stay competitive year-round.