For a start the costs maintained in your SAP ERP systems in most cases may be notional. Costs in transportation lane, costs in purchase info records, costs in pricing conditions, costs-maintained production data structure / production versions, costs maintained as ‘storage’ costs etc. may be either stale or incorrect. The only way to find such supply chain costs in perhaps under some GL account in Finance but that too may not be fully itemized.
Then there could be costs of procurement of services under services contracts that may not have considered the validity of such agreements.
Lydian’s functional experts ‘dig’ into your source systems to suggest a framework for computing your supply chain costs straight from source tables.
Asking what are my ‘supply chain costs’ is an ‘expensive’ question. For the system to understand what you mean by Supply Chain Costs. The costs ‘maintained in the system too can be dated. Esp. in your material master, transportation lanes, purchase info records and standard lot costing procedures. The transactions itself may not have captured the itemized costs. E.g. If you have priced the product on CIF INCOTERMS, the delivery costs may not have been separately captured. Likewise you costs of storage and handling have been captured in different GL accounts making it hard to reverse engineer the components of cost. May be there is a services contract with a transportation company that is not ‘consumed’.
With our Supply Chain Cost Analyzar, you precisely know such costs from your ERP systems.