The Cost of Doing What You Love
April 11, 2019I love food. Going out to eat is one of my favorite activities, but it’s a habit that can be expensive. In setting my monthly budget I allocate funds for brunches, lunches and dinners, but as we all know, even the best laid plans often go awry; a new must-try wine or a chef special could throw all that planning to the wind. Knowing what you actually spent vs. what you planned to spend, besides making you feel a pit in your stomach, can help you make better planning decisions in the future.
Managing budgets for brands is more complex. You may know that, on average, you pay 17% above the first cost in transport, stocking, duty and other fees, so you build that into your estimated cost. Mitigating circumstances, however; like changes in tax rates, or increased transportation expenses due to unplanned activities like flying in some goods, can make your costs jump.
Momentis simplifies cost tracking; when you source products, templates ensure your estimated costs are calculated using the latest figures, and when you receive invoices for duty, freight, and other cost elements, the actual amount paid goes back to update the actual costs of your goods. Your margin reports take those actual costs into account, so you know how much you actually made, and variance reports can then show you where your actual and estimated costs differ, so you can make adjustments and plan better for your next buys.
I hate seeing red when it comes to software tracking my personal budget, but at least I know it means I need to either plan better or settle for Ramen for the next couple of meals.
ABOUT MOMENTIS
The Momentis Fashion ERP System was developed uniquely for fashion, apparel, footwear and accessory brands, wholesalers and distributors. Momentis automates and streamlines processes from design to delivery – Product Lifecycle Management, Sourcing & Logistics, Inventory Management, Warehouse Management, Order Management and Financials – and integrates seamlessly with leading B2C, 3PL, POS and other 3rd parties using EDI and APIs. Momentis’ Business Intelligence, Alerts and Reports make sure that the right people have the information they need when they need it.