Import costing made simple for food manufacturing businesses
20th September 2017
Scaling a small business is no easy feat.
The difficulty rises even more in food manufacturing, where margins are competitive and politics play an enhanced role in dictating future success. Case in point: The international trade fallout from Brexit, where export and import costs could range widely over the next two years.
With so much on the average business owner's plate, it makes sense why so many are turning to import costing software for help.
There's more that can go wrong than right when it comes to importing. Numerous risks are involved, including fundamentals like price negotiation, quality of product upon arrival or simply getting everything through customs. On top of that, laws are always bound to change.
Business owners face numerous importing risks.
Delivery Duty Paid (DDP), for example, has become Australian small- and medium-sized business' responsibility recently, according to The Conversation. In the past, sellers would have to foot this bill.
All of this hasn't even included the geopolitical risks that seem to swirl daily. Companies are expected to keep track of any potential threats to their supply chain, as well as changes in currency conversion rates. Staying on top of this while continuing to scale a company in the midst of continued food manufacturing industry success can leave potential gaps that could lead to a dip in revenue.
One less thing to worry about
The popularity of import costing software is growing considering the amount of small businesses in Australia, coupled with the fact most are likely in the midst of hyper-growth. Often included on business management platforms, the application automates a variety of tasks.
One that is key to saving time and avoiding bookkeeping errors is detailed costing. The program automatically converts shipments to the latest exchange rate. Future-looking analysis also offers personnel the ability to plug in a "what if" scenario. Conversion rates rarely stay the same, and this application accounts for that by giving you accurate estimates of what the landing cost would be under a variety of factors.
Of course, import costing software also helps your business track the shipments. This is key as you bring new employees and clients on, as well as continue to grow your inventory. It will help avoid any chance that mistakes will be made.
Don't let importing be a barrier to organisational growth. Contact an Advanced Business Manager representative today to learn more.
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