Epicor Kinetic (ERP) - Data V Tech - The Proven Solution to the Volatility of Material Costs

The Proven Solution to the Volatility of Material Costs

Epicor Kinetic (ERP) customers in manufacturing have gained complete real-time control of material prices without more hurdles for the business and the ability to turn cost volatility to their advantage. Check out some of their common challenges and how Kinetic has enabled them to overcome obstacles and achieve success?

Cost-Related Challenges for Manufacturing CFOs

Are you worried about the disruption in supply chains leading to lagging production? Are you afraid of poor visibility of all costs associated with raw materials that eventually cause unexpectedly higher costs and negatively impact customers’ satisfaction? Have you recently failed to leverage supplier price discounts due to the lack of insights into/real-time views of material purchases?

Remember that we live in a New Normal, where the global supply chains constantly face disturbance due to, e.g., COVID-19 lockdowns. So, if those concerns keep growing, the overall business profitability will possibly decrease. You might lose control over the entire cost structure and the cash flow. Data management would be more challenging given the increasing manual data entry and the greater possibility of inaccurate landed costs. Then, it is harder to negotiate better pricing with suppliers in the long run.

So how can we change the status quo using Epicor Kinetic (ERP)?

Epicor Kinetic (ERP)'s Two Powerful Tools to Deal with Price Volatility

a. Smart Manufacturing Cost Analysis

Epicor Kinetic (ERP) provides the financial foundation with multiple costing options at the part type level for any manufacturer. You can configure the choices based on your company’s practices and preferences. It is also easy to keep track of work-in-progress (WIP) and cost of sales components in the general ledger integrated into the system.

As a centralized database accessible by all departments, Epicor Kinetic (ERP) increases the visibility of quotes, jobs, purchase orders, and other crucial attributes in the manufacturing process. Like the costing function, you can effortlessly define your parameters to conduct a cycle count using Epicor Kinetic (ERP). Finally, this solution can generate real-time actionable dashboards for every department instead of conventional static reports, such as inventory valuation, stock status, and job costing. (Check out the Production Management module for more details.) That means you can promptly act on any errors or alerts and instantly update the system once your action is completed.

The Proven Solution to the Volatility of Material Costs - Epicor Kinetic (ERP) Data V Tech - ERP Vietnam

b. True-Landed-Cost Calculation

With Epicor Kinetic (ERP), you can enter various landed cost types to increase data accuracy and clear all duplicates without more manual labor. More importantly, you can automate the estimation of expected costs the moment a purchase order arrives. It is also possible to define your prorating rules and enable their automatic application.

Here is a summary of the Landed Cost functionality:

  • Consolidate multiple orders with multiple currencies into a single shipment
  • Consolidate numerous suppliers into a single shipment
  • Apportion duties and indirect costs across shipment items
  • Track inventory losses between supplier shipment records and receiving records
  • Track in-transit inventory.
  • Inquire part status across all shipments and locations
  • Report quantity and cost variances
  • Define import tariff rates, percentages, and amounts to calculate duties for each received item
  • Use weight, value, volume, or quantity to disburse indirect costs to received items. Each indirect cost contains definable disburse methods

Thus, this tool offers significant benefits for manufacturing companies that import raw materials regularly. (Check out the Product Data Management module for more details.)

FMS's Story in Managing their Job Costing on Epicor Kinetic (ERP)

“Our software has made us more competitive, mainly in that it’s helped us to understand our costs better. Our job costing is improved. We understand our cost structure better, which enables us to price our products more competitively. Epicor Software has helped us innovate primarily by giving us increased visibility. We have better of what’s going on our plant floor. We have a better understanding of our cost structure. And having those tools gives us the ability to see where our best opportunities lie for innovation, where we can make the biggest improvements. And all those things underlie and support our innovation initiatives.” Greg Sweet – FMS Corporation

Check out their story to learn from their problems: 


Epicor Kinetic (ERP) Benefits in this Constantly Price-Changing World

To sum up, Epicor Kinetic (ERP) enables you to:

  • Enhance job costing quality and quoting
  • Generate thorough manufacturing cost analysis at the part level
  • Improve decision-making and cash flow

Ultimately, you will gain deeper insights into the cost structure to create more effective pricing strategies.

Epicor Kinetic (ERP) is accessible on the cloud, hosted servers, and on-premises. It is flexible and personalizable to individual use, company practices, and multiple industries.

Data V Tech is Epicor’s Authorized Partner with over 20 years of experience in the Asia Pacific. We provide well-timed implementation with full support for software localization. As a one-stop shop, we offer complete solutions for manufacturing, trading, and distribution businesses, from mobile applications to e-commerce and direct machine data integrations to Epicor Kinetic (ERP) software.

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