As supply chains continue to shift under the weight of geopolitical tensions, evolving trade agreements, and—most critically—volatile tariff structures, businesses face mounting pressure to adapt quickly. Tariff regulations can significantly impact the cost of goods, disrupt procurement strategies, and erode profit margins with little warning. To remain competitive, organizations need an ERP solution that is not only comprehensive but also highly responsive to these external pressures.
Smarter Procurement with Landed Cost and Real-Time Tariff Management
One of the biggest challenges in modern procurement is managing the true cost of goods in light of fluctuating international tariffs. With increased import tariffs from regions such as China, the EU, and Sri Lanka, businesses need visibility and flexibility in tracking additional expenses. IFS ERP addresses this by supporting Landed Cost functionality directly on Purchase Orders (POs). Users can apply Purchase Charges that reflect tariff costs, customs duties, and other fees associated with importing goods.
Beyond standard PO-level charges, IFS also enables the application of charges to inbound transport, even after shipments are en route to the United States. These transport-related charges are dynamically broken down across all included POs, ensuring accurate allocation of shipping, insurance, and duties. This feature delivers real-time operational tariff support, allowing organizations to react to changes in trade policy as they happen, avoiding profit erosion from unforeseen import expenses.
Comprehensive Costing for Margins and Pricing Accuracy
Cost visibility is critical in understanding the financial impact of tariffs and other operational charges. In IFS ERP, charges and overheads applied to raw materials are automatically rolled up through the product’s Bill of Materials (BOM), ensuring that the true cost of finished goods (FG) is accurately captured. This is particularly useful for manufacturers that need to calculate margins based on complex, multi-tiered BOMs.
IFS ERP supports a wide array of costing methodologies, including:
- Standard Cost
- Estimated Cost
- Latest/Average Purchase Price
- Planned Purchase Price
This flexibility allows businesses to model how different cost bases affect profitability and sales strategies. For example, if tariffs suddenly increase the cost of key materials, users can simulate the margin impact and adjust sales pricing or negotiate supplier terms accordingly.
Forecasting That Connects the Dots Between Units and Value
Demand planning is more than just anticipating how much product to make—it’s about understanding how each product contributes to revenue and profitability. IFS Demand Planner delivers this strategic insight by transforming unit-based forecasts into monetary forecasts, leveraging either the FG cost from any selected cost set or the Net Sales Price.
This approach allows planners and executives to gain a holistic view of how the product mix affects financial outcomes. By viewing forecasted demand through both quantity and value lenses, decision-makers can prioritize production and inventory strategies that maximize returns while maintaining service levels.
Agile Product Estimation for Smarter Make/Buy Decisions
In competitive markets, speed to quote and precision in cost estimation are vital. IFS ERP’s Product Estimator tool enables businesses to simulate and evaluate both existing products and new or conceptual designs. This is especially useful when assessing new business opportunities or preparing sales quotations.
Product Estimator can run standalone or integrated with any CRM and sales tools, and supports:
- Simulated items using non-operational part numbers
- Full BOM cost estimation
- Evaluation of multiple versions of estimates
- Comparison of make versus buy scenarios
With the integration of RFQ (Request for Quotation) data for purchase items, IFS provides an enriched estimation process. Tariff impacts and import charges can be included in each version of an estimate, offering a clearer picture of sourcing choices. This not only facilitates smarter procurement decisions but also strengthens negotiations with suppliers and customers alike.
Turn Trade Complexity into Competitive Advantage with IFS ERP
IFS ERP’s capabilities are tailored for the modern global manufacturer and distributor facing the twin pressures of volatile trade regulations and cost transparency. From real-time tariff tracking on imports and dynamic costing across the supply chain, to financially informed demand planning and versatile product estimation, IFS delivers an integrated solution that turns complexity into clarity. Businesses that leverage these capabilities position themselves to make better, faster decisions—ultimately gaining a competitive edge in both efficiency and profitability.
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