How the Landed Cost Module in Microsoft Dynamics 365 Supply Chain Management Helps Pharmaceutical Companies Calculate Accurate Costs
Pharmaceutical companies often import raw materials and finished products from all over the world and landed costs can account for a significant portion of the total cost of goods sold (COGS). The landed cost module in Microsoft Dynamics 365 Supply Chain Management can help pharmaceutical companies calculate accurate product costs by taking into account all of the factors that can affect the cost of a product, including shipping costs, customs duties, and taxes.
Here are some of the benefits of using the landed cost module for pharmaceutical companies:
- Improved cost accuracy: Pharmaceutical companies can calculate more accurate product costs, which can lead to improved profitability.
- Reduced risk: The landed cost module can help pharmaceutical companies identify and mitigate risks associated with importing goods from overseas. For example, the module can track changes in tariffs and exchange rates and generate alerts when potential problems are identified.
- Increased efficiency: Helps automate many of the tasks involved in calculating landed costs, such as data entry and currency conversion. This can free up employees to focus on other tasks, such as developing new products and ensuring compliance with regulatory requirements.
How to use the landed cost module in Dynamics 365 Supply Chain Management
The landed cost module is easy to use and can be configured to meet the specific needs of each business. To use the module, pharmaceutical companies simply need to enter the following information:
- Product information: includes the product name, code, and description.
- Supplier information: includes the supplier’s name, address, and contact information.
- Shipping information: includes the shipping terms, mode of transportation, and expected delivery date.
- Cost information: includes the product cost, shipping costs, customs duties, and taxes.
Once the required information has been entered, the landed cost module will automatically calculate the total cost of the product. This information can then be used to set prices, make business decisions, and generate reports.
Here is an example of how a pharmaceutical company could use the landed cost module:
A pharmaceutical company may import raw materials from China to manufacture a new drug and then use the landed cost module to calculate the total cost of the raw materials, including shipping costs, customs duties, and taxes. All of this information will help the company figure out how to set the new drug’s price.
The landed cost module is a valuable tool for pharmaceutical companies that need to calculate accurate product costs, and it can help businesses improve in many different facets.
If you want to learn more about how the landed cost module in Microsoft Dynamics 365 Supply Chain Management helps pharmaceutical companies calculate accurate costs, contact us here to learn how we can help you grow your business. You can also email us at email@example.com or call (312) 345-8817.
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