Every business owner should know well about all the happenings in his company, from product manufacturing, purchasing, shipping, and any other processes that may complete their business. Mostly, total landed cost comes in the way and every businessman should know what factors or elements it is composed of. Let us take you a little bit closer about total landed cost and the factors linked to it. What is Total Landed Cost? Total Landed Cost or TLC is considered a vital computation that concerns every supply chain. To explain sensibly, total landed cost is the overall costs rendered from the manufacturing and product delivery up to the extent where you generate revenue from those products. Relying upon the field of industry you are in, the factors behind the total landed cost will significantly fluctuate. The main idea why total landed cost should be computed is to know both the visible and invisible expenses concerning the supply chain. When you are well knowledgeable of the accurate cost of a certain product, then you’ll be able to make wiser decisions on your future product investments. Here are some factors behind total landed cost:
- Base Rate – this is the most fundamental cost you need to pay for the things or materials you will be or you’re sourcing. Base rates may change without prior notice due to certain reasons.
- Delivery Expenses – the delivery expenses may cover both foreign and domestic shipping or transportation costs, including immediate line haul. You may also need to consider the variation of forex rates.
- Administration and Overhead Costs – these expenses are usually the ones which are often neglected or missed during the computation of total landed cost. Overhead may cover stuffs like labor costs and more.
- Compliance and Risks – satisfying all the rules and regulations with regards to trading policies may as well need you to spend. Also remember to include the risk of disruption of supply chain, particularly if you are dealing with unfamiliar or different offshore partners.
Here at ERP Consulting LLC, a topnotch provider of Microsoft Dynamics GP in Pataskala Ohio, we can help you understand more about total landed cost and everything linked to it. We can even provide better solutions for you to achieve success in the most efficient way. We can be your most proficient partner when it comes to the growth of your business. Give us a call today for a comprehensive consultation with our professional staff. Dial ,740-951-0220.