Oracle Landed Cost Management (LCM) gives organizations financial visibility into their extended supply chain costs, including transportation and handling fees, insurance, duties, and taxes. Since these types of charges can compose a significant portion (upwards of 40%) of an items' cost, it is important to accurately incorporate them into overall financial processes and decision making activities. Oracle LCM initially estimates these costs and later updates them with actual amounts as they become known, allocating them to shipments, orders, and products. This allows companies to maximize profits, improve visibility into outstanding liabilities, enhance competitiveness, and ensure that complex trade activities are compliant with regulatory mandates.
Maximize Product Profitability
Automatically capture and itemize extended costs and charges such as freight, insurance, and brokerage fees as well as duties and taxes to illuminate the hidden costs associated with complex supply chains.
Strategically source products and components from lower cost foreign locations by identifying and measuring all of the extended supply chain costs—charges, fees, duties, and taxes—optimizing supply networks.
Increase Financial Visibility into the Supply Chain
Tracking estimated costs as soon as they are known gives product line managers, as well as financial professionals, more insight into their exposure for budgeting and reporting.
Itemizing and tracking all acquisition costs as they apply to a product is a global best practice for industries with complex supply chains.