Monday, June 22, 2009

Oracle's introduces Landed Cost Management Module

Oracle has come up with a module for Landed Cost Management. Landed Cost Management is one are of Global Trade that is considered on the cutting edge as it can help reduce costs and has a better value proposition to management than the standard pitch of risk minimization.

Here' the link I found online for the product's datasheet:

It remains to be seen how this product will integrate with Oracle GTM. I hope all Global Trade related modules are managed under the same umbrella to maximize synergies and to enable modules to work well together.

Let me know if you end up implementing this module about how well it is serving your needs.


5 comments: said...

Thanks for the update. Sounds like you're pretty excited for the Oracle release. What are your thoughts on Oracle's expertise in the trade compliance field vs. a more experienced company that focuses solely in this niche?

Anonymous said...

Giridi - I was at Oracle Apps world last year and sat through the GTM presentation. The demonstration was around landed cost, I think with the content deal they have signed (some 100 counties) they could pull this off - interested to see if they have the freight data to make a full landed costs V duties and product price.

I asked the question at the conference regarding Modules and Integration to Oracle and was told catagorically that all GTM products would be classed as Fringe products - i.e. require separate install and integration. This may have changed since 2008 but if not I would still advise an Oracle client to compare the functionality and total cost of ownership of best of breed GTM providers V Oracle Modules as a default "Strategic" decision.

Also it will be interested to see if the content is included in Oracle license fee's or if a serparate contract will be reuqired with the content provider as per some other ERP solutions.

Trying to keep this objective but I still think a focused GTM provider has the edge - for now!!!

Ashok Sadhwani said...

Hi Giri

Since I come from the business side of things, please allow me to comment on Oracle's landed cost module.

First of all, this is nothing new. Providers have had similar solutions since a decade. Also the idea is at least 30 years old when exporters and importers would create a chart of destinations, origins, freight charges and customs fees to come with a CIF, CFR or landed (at that time the Incoterm DDP was not in existence) cost. The trade community surely and sorely needs a transactional based realistic automated solution and hopefully Oracle's recent offering might be the closest to being one.

The challenge I didn't see being addressed in the data sheet you provided is how would multiple inputs of freight charges be tackled in the system? Does it include what-if scenarios such as when the cost of trucking from the U.S. port of unlading to Kansas City increases by 25 cents per item, is an automatic calculation performed? Or what the impact of freight load increase from 2 to 3 containers from China Manufacturing to HK Port would be?

Other what-if scenarios should be able to address every item each step in the chain so as to give the user the potential to seek the best in cost. In other words, wouldn't it be great if the system provided for modeling?

Also, the user/client is again being faced to deal with estimated costs. All brokerage, freight and incidental costs are clearly identified in service provider contracts and these charges should be plugged in with real time customs duty and fees to come up with a realistic landed cost. Read run hidden costs to the ground. Unforeseen circumstances such as unanticipated customs exam fees, etc., to be dealt with just as any ERP deals with exceptions.

Too much already……more when the subject rears its head again.

Dayakar Reddy said...

Hi all,
Iam implementing LCM for One of my client in Lagos.
LCM is not supporting basic Business requirements and lot many bugs in LCM since 2009.
EX:1. LCM as pre receiving not allow the partial shipments in inventory module.
2. LCM not support the Intercompany transactions
3. Po currency and Cost factors Invoice should be in the same currency which not correct,,practically PO can be created foreign currency and local duty can be paid in ledger currency but LCM not supporting this many bugs still not resolved even Oracle DEV team knowns these bugs..

Ch.Dayakar Reddy

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