Fluctuating costs is something most businesses will have to deal with on a regular basis. Often suppliers will deploy annual price increases or even decrease their selling prices based on demand, season or special offers. If good relationships with suppliers are maintained, businesses will often become privy to this information before it comes into effect. Companies can then reflect the costs in their upcoming prices and promotions allowing sales and profitability to be maximised.
However with costs changing so frequently, it is important that fluctuation is handled in an organised and efficient manner to avoid staff time being taken up with re-pricing items. In v9.5 of OrderWise, there has been a number of additions to allow businesses to better manage fluctuating costs by using the new functionality available with supplier special costs.
New start/end date supplier special costs and customer price list fields
In previous versions of OrderWise, users could add special costs to a supplier record with costs, discounts and quantity breaks on items they receive at a special rate. However new development has added a number of new editable fields in order to make special costs more flexible.
For customers who are regularly informed by their suppliers as to upcoming changes in costs and special offers on items, there is now the ability to add special offer cost, start date and end date. These new fields will allow users to schedule upcoming costs along with the dates they are due to come into effect. These special costs can then be activated by running the recalculate estimated costs system utility on the start and end dates or when required. These special costs can be reused at any time by simply updating the start/end dates. By keeping a history of these special costs against the supplier record, businesses will be able to clearly monitor fluctuations in costs.
In addition to this two new fields have been added to customer special prices for start and end date. These fields can be used in-conjunction with the new supplier special costs to offer customers discounted rates and therefore allow businesses to use any extra margin available to maximise sales.
Additional Supplier Costs
Two more new fields have been included that allows users to list additional costs and apply these additional costs to purchase orders. This is for businesses who may want to include additional costs as standard to cover things such as staff commissions, packaging materials or haulage costs when they are setting customer prices and calculating profit margin. These additional costs can be simply entered against the supplier special costs and will be pulled through to all purchase orders if the apply additional costs field is ticked.
To coincide with the introduction of these fields, a new estimated costing method has been introduced to use main supplier special cost. With this option selected, the current supplier special cost activated against an item, based on the start and end date, will be used as the estimated cost. This allows OrderWise customers scheduling cost changes using supplier special costs to ensure current costs fluctuations are taken into account when the estimated cost is calculated.
Import Supplier Special Costs
The final addition to supplier special costs is the ability to import these costs en masse. This is done via the import data feature, which can be used by a business to import various data from spreadsheets into OrderWise. By selecting the import data node within the system module and choosing the supplier special costs option, users can either create or import an Excel spreadsheet with a list of supplier special costs including start and end dates. This allows for all upcoming supplier costs against items to be added in to OrderWise at once rather than individually, allowing maximum efficiency to be achieved.
These new features further expand the functionality available with OrderWise Purchasing, making the module even more adaptable to the requirements of each individual business. With the new supplier special cost developments, the procurement process is made even easier and more efficient, allowing businesses to prepare cost changes, promote special offers and easily manage cost fluctuations.
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