For years, it seems landed cost was calculated as port of entry. But was that because it was the easiest thing to do? A recent Penn State Research Survey suggests to accurately determine
landed cost, you need to capture costs in six categories:
- Purchase price
- Transportation and logistics
- Customs and imports
- Inventory costs
- Overhead and administration
- Risk and compliance
Of six, multi-billion dollar companies studied in various industries, not one captured all the costs. And 46% were calculating total landed costs via Excel spreadsheets. The reason? Penn State feels a major contributing factor is lack of centralized data management. In summary, logistics IT still has a long way to go. But on the other hand, it’s come a long well as well. To see how far, check out our information management systems at http://www.totalogistix.com/. We believe the road to supply chain improvement lies in the details.
See for yourself, or even better, give us a call to discuss what we can do to reduce your logistics costs at 1 800. 989.0054 x120.