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How to Keep Consumer Prices Competitive even as Shipping Container Costs Continue to Rise

Posted by Stephen Kavianian, Business Development Manager on Dec 28, 2021 9:00:00 AM
Stephen Kavianian, Business Development Manager
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As 2022 nears and the holiday season ramps up for consumerism, many distributors are still struggling to adjust to massive increases in shipping container costs. It’s no secret that this is a serious issue impacting the supply chain. Companies are working to keep their prices competitive but must also be mindful of their operating costs in order to protect their profit margins.

A recent report from the United Nations (UN) estimates that elevated shipping costs will drive up prices for consumer by 10%. With no end in sight, many business leaders are asking, “how can I account for these rising costs while also keeping our customer in mind?”.

There are a few steps you can take as a business owner to navigate these ongoing challenges. First, you should evaluate if you have a good backend solution that can store your entire company’s data into one platform (e.g., an ERP system). From there, you can ask yourself, “is this solution able to organize my costs and will it enable me to account for change?"

The next step is to seek out the right consultants to help you understand what business logic can be incorporated into your solution.

Here at Concentrus, we have been able to solve the issue of rising shipping container costs for current NetSuite customers as well as companies looking to implement NetSuite as a new ERP solution by creating an automated tariff/shipping costs calculator in their systems.

We’ve automated the process of adding a surcharge line to a sales order and attaching the surcharge to any items that are impacted by import fees. We have also been able to set controls around this automated feature (surcharge costs will continue to be fluid) so that we can always protect your margins.

 

If you applied this solution to your business, in what ways will it impact your profit?

 

Want to learn more? Contact Concentrus today to discuss your ERP options.

 

About Us

 

Concentrus is a complete NetSuite solutions provider that guides organizations through how to use NetSuite to reach highly focused business goals and objectives. We provide NetSuite implementation, developer, integration, and customization services to ensure that you have a long-term solution that is tailored to fit your systems, people, and processes.

 

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Want more NetSuite Tips and Tricks? Check out our Short & 'Suite videos

 

 

Tags: ERP, Wholesale Distribution, NetSuite Tips