How Automation Of Cost Estimation Process Can Boost The Revenue of OEMs?
by Intellinet Jan 3, 2020
Various OEMs ship parts from other countries as they are not manufactured in their country. And OEMs from various sectors do so, not only one or two.
Here the point that is to be noted is, ordering parts from other country requires a lot of estimation in terms of cost as there are multiple cost associated with shipped material.
Currently, OEMs are performing the cost of estimation process through manual methods and here comes the interesting part, with manual setup there comes lots of error. And, in finding and correcting those errors lots of time is wasted. Sometimes, errors go unnoticed and OEMs need to bear to huge loss.
So, What’s the solution?
Solution is supplier cost estimation software. This is fully featured software that can manage the complete process of cost estimation for the items shipped from other countries.
There is one more drawback of manual process. As the manual process is time taking, profit margin of OEMs are less and they are not able to pay attention of other revenue generating areas. Also, there are two other important ingredients that must not be forgotten to maximize the success:
Automation: To achieve a consistency in estimation process OEMs need to rely upon digital process and that be only done by levying the automation in their organizational setup.
Accuracy: To ensure that cost estimated manually is accurate enough, manual workforce is not enough. That is why digital cost estimation software is required to ensure accuracy in shipment.
What Are The Factors Affecting Shipping Cost?
Here is the list of requirements that affect the price of shipment for OEMs:
Shipping Insurance: This is the first thing that an OEM needs to take care of, if they want to protect their shipment from damage due to various reasons. This cost need to be calculated before loading shipment and need to be mentioned in the bills, so it’s important for an OEMs to use automated software and eliminate the chances of error.
Shipping-related charges: These charges are related to shipment of the material, such as the pickup location, the delivery destination, and the delivery hours, etc. So many charges are there, so it’s good to not manage such things digitally.
Duties and Taxes: When you ship something from another country, you need to pay additional duties and taxes before the shipment is imported. Duties and taxes may are applicable according to the different country rules.
Unexpected Problems: No matter how airtight the shipping strategy is, unexpected problems may occur anytime. This can be delays in shipment delivery or any other paper related charges. So, it’s important to take some amount in consideration and calculation of such amount will be possible through digital supplier cost estimation software.
Fully Customizable Software
Authentications and Approvals Facility
Standard Rules and Regulations
For OEMs Supplier cost estimation software will increase the profitability and accuracy.
The software incorporates several unique and powerful features, with details costing formulas to produce precise estimates.
The software from Intellinet provides OEMs with knowledge they need to identify and understand the cost drivers in the products they ship from another countries. Moreover, it also allows organizations to implement uniform and predictable costing strategies.
For basic estimate of your shipping costs, Intellinet supplier cost estimation software is a great start. All that OEMs need to do is, Just integrate the software in their organizational setup and start doing things digitally. Moreover, OEMs will be able to see the location of shipment.
Feel free to connect if you have any other query regarding the software.