Central Planner||Business Lead-Rice||Cost Analyst||CMA( Partly Qualified)|| Pricing Expert || Six Sigma Yellow Belt||Management Accounting Expertize||Finance Controller Akij Air | Cost Optimizing Operation Lead||
Are you owner of your cost? Optimise 30% Cost. It's common to prioritize negotiating lower prices with suppliers, but success in price negotiation doesn't always translate to overall cost efficiency. The failure to manage landing costs effectively can significantly impact your ability to handle products at optimal costs. This oversight can lead to challenges such as suboptimal inventory levels, inefficient order quantities, and pipeline management issues. The percentage of landing costs incurred in importing raw materials can vary widely depending on several factors such as the type of product, origin, shipping method, and specific regulations. However, as a rough estimate, landing costs typically range from 10% to 30% of the total cost of imported raw materials. Here’s a breakdown of some common components that contribute to landing costs and their approximate percentages: Customs Duties: This can range from 0% to over 10%, depending on the classification of the product and the country of origin. Freight and Shipping Costs: These typically range from 5% to 15%, depending on the distance, shipping method (air, sea, land), and volume. How to optimize this cost will be presented in the next episod.
