What is the best way to track the cost of your import/export operations?

Administrar custos operacionais é uma tarefa que requer ampla percep??o de finan?as e gest?o de projetos , estas duas particularidades s?o extremamente fundamentais principalmente quando é o momento de tomar decis?es que envolvem altas somas de dinheiro ??. A gest?o de custos operacionais principalmente de importa??o/exporta??es, tem vindo a ser cada vez mais sensível devido ao tipo de opera??es, pois tende a n?o ter pre?os estáveis , daí a necessidade de sempre saber o quanto se lucra , se gasta com despesas e qual será o valor sendo captado e tra?ar formas de fazer render sempre os ganhos aplicando ou investindo em activos que trar?o benefícios para a empresa…..

The best ways to track the cost of import and export operations include: 1. Maintaining detailed records of all expenses related to imports and exports, such as transportation, customs duties, insurance, and handling fees. 2. Utilizing specialized software or accounting systems that can track and categorize import and export costs. 3. Regularly reviewing and reconciling invoices and receipts to ensure accuracy. 4. Implementing a centralized system to monitor and analyze import and export costs, allowing for better cost control and decision-making. 5. Seeking professional advice from customs brokers or freight forwarders to ensure compliance and optimize cost management.

Es sumamente importante tomar en consideración no solo el tema del costo más accesible, debemos de evaluar el costo beneficio de los proveedores se servicios y agentes aduanales más competentes y expertos para el tipo de productos de nuestras operaciones ya que podríamos caerte en acciones de mayores incrementables por elegir al más barato y no al más experimentado.

Efficiently tracking import/export costs requires meticulous record-keeping encompassing all expenses, from shipping and customs to taxes and fees. Embrace digital tools such as spreadsheets or accounting software for streamlined organization, ensuring real-time updates on transactions. Stay vigilant on currency conversion rates, conduct regular audits for accuracy, and foster open communication with partners and providers to pre-empt surprises. Additionally, staying informed on trade regulations and industry trends enables proactive cost management and optimization.

I would add that us very important to take into account that the global intermodal freight market is very volatile eight now due to continued post Covid political instability affecting many of the exogenous cost factors for freight (in either of modes). Also due to some business crisis in the global trade picture, freight costs have drastically come down to pre Pandemic levels (mostly via maritime from Asia to America and intra American trade) This apuld be good for business but as many countries have felt the economic crisis more than others, demand for intermodal freight is in a low level, affecting all related industries. Difficult to deal transportation price contract lock ups in freight costs due to unstable market in general

1. I once worked with a company that used to import from Turkey and the UK. During importation, the costs involved were CIF (Cost, Insurance and Freight) charges of the items, agent charges for clearing the goods from the port of entry into the country which would sometimes include demurrage in case of delayed payments and lastly delivery to office charges. After factoring in all those costs, then you would determine a margin of profit in line with what the market offer was; slightly higher or lower and that's how we costed. While in management over there, the business made at least 100,000 USD in revenue annually 2. As for exports, we sent out labor to sorrounding countries and this covered transport, lodging and expertise costs.

The most sensitive import cost may vary depending on the nature of the product and the logistics process, but some of the most common costs that companies tend to monitor closely include: Product Cost: The price of purchasing the product abroad, often affected by factors such as fluctuations in exchange rates and negotiations, Transport Costs, Customs Tariffs and Taxes. These are important variables to be observed.

Imports and exports involve cross-border or international trade. The primary factor that differentiates national from foreign trade is exchange rates. The primary aspects of cross-border trade are distance travelled and the weight or volume of the items. What also matters is the type of product, that is classification. However, if products or services are getting transported via railways or tractors and trailers beyond borders, this would add to the freight and transportation cost. Another cost that gets added here would be customs, tariffs or duties. The other costs involved are inspection and safety reports. These costs would get applicable for heavy-duty, engineered items. Much depends on the type and category of items.

The use of an ERP will work wonders but first you need to find the one that suits you. It is like finding a girlfriend with the intention of growing the relationship until she becomes your wife. Changing an ERP is not easy and will involve a good amount of money and time... Just like getting a divorce. But between the Spreadsheet and the ERP you might find other applications like CODA or Airtable that will be a step up from the spreadsheet and will help you track all the information and make reports of the important stuff. Also, working with these programs, will give you a better understanding of your needs and that is a key factor to find an ERP.

Cost recording combined with excellent management software are powerful tools for monitoring costs in international trade By adopting these practices, you will be better positioned to control and optimize the costs involved in import and export operations.

Several avenues can help track computer costs. The first is the ERP or accounting system. It is here that transactions get recorded. However, other avenues are creating a designated checklist and spreadsheet for cost calculation. The spreadsheet shall include factors, drivers and assumptions. When it comes to imports and exports, there are additional considerations involved. The two primary ones are taxation and currency conversions. Sophisticated tools and software help automate these calculations, using real-time data. Much depends on the size, scope and business activities. These factors shall decide the methodology devised for cost computations.

Track import/export costs effectively: use comprehensive accounting software, maintain detailed records, negotiate favorable terms, optimize logistics, and stay informed about tariffs. Implement cost-cutting measures, regularly review strategies, and consider trade finance tools for efficient financial management in international trade.

1. I worked with a company that used to import from Turkey and the UK. During importation, the costs involved were CIF (Cost, Insurance and Freight) charges of the items, taxes, agent charges for clearing the goods from the port of entry into the country which would sometimes include demurrage in case of delayed payments and lastly delivery to office charges. After factoring in all those costs, then you would determine a margin of profit in line with what the market offer was; slightly higher or lower and that's how we costed. While in management over there, the business made at least 100,000 USD in revenue annually 2. As for exports, we sent out labor to sorrounding countries and this covered transport, lodging and expertise costs.

For import, there’s a good tool many brokerage services providers can help. You can ask them to provide you landing cost which gives you a comprehensive analysis of all your costs related to a certain shipment.

For effective cost tracking, larger organizations would normally assign clear cost ownership to specific individuals or the Logistics function within the Supply Chain Dept. that would employ cost-saving strategies, such as negotiating better pricing with suppliers, optimizing shipping routes, and reducing administrative overhead etc. On the other hand, the finance/accounting role typically would involve utilizing variance analysis to identify deviations from standard costs and help investigate the underlying causes then assist in implementing mitigating measures as needed.