Aminul Islam Akib’s Post

Know the benefits of Bonded Warehousing: 1. Deferred Payment of Duties and Taxes Cost Management: Pay customs duties and taxes only when goods are removed from the warehouse, improving cash flow and financial flexibility. 2. Improved Cash Flow Financial Efficiency: Delay tax payments until goods are sold, maintaining liquidity and allowing for better financial planning. 3. Storage of Imported Goods Bulk Imports and Seasonal Storage: Store large quantities of goods or seasonal inventory without immediate tax liabilities, benefiting from bulk purchase discounts. 4. Export Flexibility Duty-Free Exports: Store goods intended for re-export without paying duties, making international trade more cost-effective and reducing lead times. 5. Enhanced Inventory Management Inventory Control and Space Optimization: Benefit from sophisticated inventory management systems and efficient use of warehouse space for both short-term and long-term storage needs.

What is landed cost? Landed cost is the total expense associated with shipping goods from the source to buyer. This could mean to a buyer’s warehouse or to a customer’s doorstep. You could calculate the landed cost per shipment or per unit. This is an important supply chain KPI in inventory management. The landed cost formula is: Landed cost = unit cost of product + shipping/freight costs + customs + risk + overhead Landed cost reflects direct costs only to move the product from the factory floor to your customer. Sounds simple? There are many external factors that can affect landed cost. Example of direct costs included in landed cost: Manufacturing Freight Handling costs Packaging expenses Custom import/export duties Currency conversion Insurance Crating & storage Tariffs and Taxes All other charges incurred along a product’s transport Example of indirect costs not included in landed cost: Production-related overhead costs Cost of labor Equipment costs

Figuring out the real cost of getting your products from a supplier to your door can be tricky with all the different expenses involved. Landed costs cover everything—from production to shipping and customs—so you know exactly what you’re paying. https://lnkd.in/gvvqnsfy

Incoterms are a powerful element in the supply chain because selecting the correct Incoterm can save millions of dollars. -Purchasing team must be knowledgeable about Incoterms as they impact the unit price. -Indirect procurement team should understand Incoterms because they affect freight costs. -Logistics team should be aware of Incoterms as they often advise others who may not be familiar with these terms. #INCOTERM

Landed Cost: A Crucial Aspect of Supply Chain Management Landed cost is a vital concept in international trade and supply chain management, encompassing the total expense involved in getting a product from the supplier to the buyer's doorstep. This detailed calculation includes several key components: 1. Purchase Price: The initial cost of acquiring the product from the supplier. 2. Shipping Fees: Costs related to transporting the product, which can vary depending on the mode of transport (air, sea, or land) and distance. 3. Customs Duties and Taxes: These are levied by the government of the importing country and can significantly impact the overall cost. 4. Insurance: Coverage for the goods during transit to protect against potential loss or damage. 5. Handling Fees: Charges for loading, unloading, and warehousing the product. 6. Other Miscellaneous Costs: Any additional fees, such as documentation charges, packaging costs, and currency conversion fees. Importance of Accurately Calculating Landed Cost Accurately determining the landed cost is essential for businesses for several reasons: 1. Profitability Analysis: By understanding the true cost of goods, businesses can set appropriate pricing strategies to ensure profitability. 2. Competitive Pricing: Knowledge of landed costs allows businesses to remain competitive in the market by offering prices that reflect the total cost of bringing a product to market. 3. Financial Forecasting: Accurate landed cost calculations help in budgeting and financial planning, providing a clearer picture of potential expenses and revenues. 4. Supply Chain Optimization: Understanding all cost components can highlight areas where expenses can be reduced, leading to a more efficient supply chain. 5. Risk Management: By factoring in all possible costs, businesses can better prepare for unexpected expenses and mitigate financial risks. Strategies for Managing Landed Cost To effectively manage and reduce landed costs, businesses can adopt several strategies: 1. Supplier Negotiation: Work with suppliers to negotiate better purchase prices and terms. 2. Optimized Shipping Methods: Choose cost-effective shipping methods and carriers and consolidate shipments where possible to reduce costs. 3. Trade Agreements: Take advantage of free trade agreements (FTAs) and preferential tariffs to lower customs duties and taxes. 4. Technology Integration: Utilize software solutions that provide real-time data on shipping, customs, and other costs to streamline the calculation process. 5. Supply Chain Visibility: Maintain transparency in the supply chain to identify and address cost-driving factors promptly. #LandedCost #SupplyChainManagement #ShippingExpenses #InternationalTrade #CustomsDuties

Packing List and Commercial Invoice are two essential documents in international trade, serving distinct purposes: *Packing List:* 1. Document listing contents of each package/shipment. 2. Details: - Item description - Quantity - Weight - Dimensions - Package numbers - Handling instructions 3. Purpose: - Facilitates customs clearance - Helps with cargo loading/unloading - Ensures accurate receipt verification 4. Issued by: Shipper/Exporter *Commercial Invoice:* 1. Document providing transaction details. 2. Details: - Seller/Buyer info - Item description - Quantity - Unit price - Total value - Payment terms - Incoterms 3. Purpose: - Confirms sale/purchase agreement - Supports customs clearance - Used for tax/duty calculations - Facilitates payment processing 4. Issued by: Seller/Exporter *Key differences:* 1. Purpose: Packing List (logistics) vs. Commercial Invoice (financial) 2. Content focus: Packing List (package details) vs. Commercial Invoice (transaction details) 3. Issuer: Packing List (shipper/exporter) vs. Commercial Invoice (seller/exporter) 4. Usage: Packing List (customs clearance, cargo handling) vs. Commercial Invoice (customs clearance, payment processing) *Example:* A US exporter ships 100 electronic devices to a Canadian buyer. *Packing List:* - Package 1: 50 devices (20 kg, 2x2x1 meters) - Package 2: 50 devices (20 kg, 2x2x1 meters) *Commercial Invoice:* - Seller: ABC Electronics (US) - Buyer: XYZ Imports (Canada) - Item: Electronic Device (100 units, $100/unit) - Total Value: $10,000 - Payment Terms: 30-day credit Understanding the differences between these documents ensures smooth international trade transactions!

🚢 Understanding INCOTERMS 2020: Simplified Matrix for Logistics Professionals🚢 Dear Connections, After numerous requests from my network, I am excited to share this comprehensive yet straightforward matrix of INCOTERMS 2020. This visual guide breaks down who is responsible for each step in the shipping process, making it easier to understand international trade terms. 🔹 What are INCOTERMS? INCOTERMS (International Commercial Terms) are a set of rules that define the responsibilities of sellers and buyers for the delivery of goods under sales contracts. They are crucial for the global logistics and supply chain industry. 🔹 Why is this Matrix Important? This matrix offers a clear, concise overview of the key responsibilities and costs associated with different INCOTERMS. Whether you're a seasoned logistics professional or new to the field, this guide is designed to help you navigate the complexities of international trade with confidence. 🔹 Key Features: - Clear Breakdown: Who pays for what? Instantly see the responsibilities for each term. - Color-Coded: Easily distinguish terms recommended for c-can shipments and ocean-only terms. - Practical Insights: Understand the nuances of each INCOTERM with ease. Let's continue to streamline and simplify our logistics operations. Feel free to share this post with your network and join the conversation! #Logistics #SupplyChain #INCOTERMS2020 #InternationalTrade #Shipping #Procurement #LogisticsManagement #SupplyChainManagement #Freight #Transport

Want to really understand your true costs? Price tags are just the beginning in global trade. “Total Landed Cost” ( or TLC) includes every cost along the way, from shipping and tariffs to compliance fees and handling. Understanding TLC is the key to smarter pricing, healthier margins, and bigger profits. Ready to break down your TLC? Check out our recent article for a quick, practical introduction that can change the way you look at your supply chain: https://lnkd.in/gdJ4tAwV #import #export #trade #supplychain #logistics #tlc #totallandedcost #shipping

Incoterms（International Commercial Terms）2020 | Shipping Terms EXW (Ex Works): The seller makes the goods available at their premises or another named place. The buyer is responsible for all transportation costs, customs clearance, and risks from that point onwards. FCA (Free Carrier): The seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. The buyer bears all risks and costs from that point. FAS (Free Alongside Ship): The seller delivers the goods to the dock next to the vessel nominated by the buyer at the named port of shipment. The buyer bears all costs and risks from that point. FOB (Free On Board): The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment. The buyer bears all costs and risks from that point. CFR (Cost and Freight): The seller pays for the carriage of goods to the named port of destination. Risk transfers to the buyer once the goods have been loaded on board the ship. DPU (Delivered at Place Unloaded): The seller delivers the goods, unloaded, at the named place. The seller bears all risks and costs associated with transporting the goods to that location. DAP (Delivered at Place): The seller delivers the goods to the buyer at the named place of destination. The seller bears all risks and costs associated with transporting the goods to that location, except for unloading costs. DDP (Delivered Duty Paid): The seller delivers the goods to the buyer, cleared for import, at the named place of destination. The seller bears all risks and costs associated with transporting the goods until they are delivered to the buyer, including import duties and taxes. #supply #chain #logistique #SAP #transport #recrutement #incoterms

Logistics is not just about moving things from point A to point B. It’s about precision, transparency, and seamless coordination at every step. ✅ Streamlined Documentation From booking to bill of lading, we ensure that every document is prepared, verified, and finalized with absolute accuracy—so you can focus on growing your business. ✅ Efficient Customs Clearance Our expertise in handling customs processes ensures your cargo clears the hurdles without delays. With EDI integration and meticulous compliance checks, we make global trade simple. ✅ Optimized Cargo Loading Whether it’s door-to-door or warehouse loading, our tailored stowage plans maximize efficiency while safeguarding your goods. Your cargo is in safe hands. ✅ Transparent Cost Settlement We believe in clarity and accountability. Our robust settlement processes ensure every charge is reviewed, verified, and communicated transparently. ✅ Commitment to Timelines We know the value of time in logistics. From vessel schedules to payment settlements, our systems are designed to deliver on time. Whether you’re exporting goods or managing international supply chains, we’re here to make your logistics journey smoother and more successful. 💬 Reach out to us today to learn how we can support your logistics needs.