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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

🚢 Unlocking the Secrets of Efficient Shipping: Are You in the Know? 🚢 Navigating the import process with a freight forwarder can make or break your supply chain efficiency. Have you ever wondered how trade terms like EXW and DDP impact your freight responsibilities? Or why choosing the right shipping method is crucial for cost-effective transportation? Here are some key insights: 📦 Trade Terms & Freight Responsibilities: Negotiating trade terms with your supplier can determine who handles the freight at different stages. Understanding terms like EXW and DDP can save you from unexpected costs and delays. 🚢 Sea vs. Air Shipping: Did you know that sea shipping is usually the most affordable option, especially for shipments less than 1 cubic meter or 250 kgs? Airfreight, though faster, can be 2-5 times more expensive and is best reserved for urgent shipments. 🤝 Working with Freight Forwarders: Partnering with an authorized and licensed freight forwarder is essential. They not only handle the movement of goods but also provide valuable advice and assistance. 📧 Processing Shipping Quotes: Efficiently managing shipping quotes through email or online methods can streamline your import process. Ensure the quotes include import duties and tax fees to avoid surprises. 📜 Key Documents for Customs: Don't overlook crucial documents like the power of attorney, commercial invoice, packing list, and house bill of lading. These are vital for customs clearance and smooth transportation to the final destination. 📅 Import Process Timeline: The timeline can vary, so plan ahead for potential delays. Staying in close communication with your forwarder can make a significant difference. 💡 Tips & Tricks: What’s your best tip for managing the import process? Have you faced any unexpected challenges? 🔍 Let's Connect!: Share your experiences with freight forwarders in the comments section below. Your insights could help others navigate their shipping challenges! #Logistics #FreightForwarding #SupplyChain #Shipping #ImportExport #BusinessTips #TradeTerms #CustomsClearance

Packing List & Commercial Invoice. In logistics, Packing List and Commercial Invoice are two essential documents prepared by the seller or shipper Both documents are essential for ensuring the accurate movement of goods, compliance with customs regulations, and proper payment processing in logistics. Lets see its Purposes and Use in Logistics. 1.Packing List: Purpose: The packing list provides a detailed description of the physical contents of the shipment. Contents: It includes item descriptions, quantities, weights, dimensions, and sometimes packaging details like how the items are packed (e.g., in boxes, crates). Use: It is used by the receiver, shipping companies, and customs to verify that the correct items are in the shipment. It helps ensure that the shipment matches the buyer's order and is inspected correctly by customs authorities. 2.Commercial Invoice: Purpose: The commercial invoice is a financial document that serves as the official bill for the goods being shipped. It provides the monetary value of the shipment and is used to determine how much the buyer should pay to the shipper. Contents: It includes descriptions of the goods, their unit price, total value, shipping and payment terms (Incoterms), and the buyer and seller's details. Use: It is critical for customs clearance, as it is used to calculate the duties and taxes that need to be paid for the goods. It also serves as a legal document of the sale between the buyer and the seller. #Logistics #ShippingDocuments #PackingList #CommercialInvoice #Freight #Clearance #Customs

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.

What is Landed Cost? Landed cost is the total cost of a product once it reaches its destination. It includes not only the purchase price but also shipping fees, customs duties, taxes, insurance, and any other costs involved in getting the product from point A to point B. Understanding landed cost is key for businesses to get a true picture of what they’re really spending on imported goods. It helps in setting accurate pricing and ensuring profitability by factoring in all the hidden costs of the supply chain. #SupplyChain #LandedCost #BusinessInsights #Logistics #ImportExport

Advice on Overcoming Shipping Challenges from the US to Canada for 2025: Shipping goods from the US to Canada can be complex due to cross-border regulations, costs, and time constraints. Below are actionable strategies to address these challenges effectively, keeping budget constraints in mind. 1. Select carriers that specialize in cross-border shipments, like Purolator International. Compare costs, transit times, and services to find the provider that best fits your budget and timeline requirements. Tip: Partnering with companies that offer consolidated shipping can significantly reduce fees and streamline transit. 2. Leverage Consolidated Shipments Reducing the number of individual shipments by consolidating goods into fewer, larger shipments can lead to lower transportation costs and simplified customs processes. Actionable Step: Plan inventory cycles to ship in bulk whenever possible. 3. Negotiate Rates Speak to shipping providers about tailored rates based on your shipping volume and frequency. Carriers could be willing to negotiate prices for recurring shipments or high-volume relationships. Next Step: Request a detailed quote from Purolator International, then benchmark it against competitors. 4. Track Costs and Delivery Times Use reporting tools and analytics provided by your shipping partners to monitor transit times and costs for every shipment. This data can help identify areas to cut costs while maintaining delivery efficiency. Recommended Tools: Look for providers that offer end-to-end tracking and real-time reporting. We have now entered a new year with new expectations. If you're considering addressing your Canadian shipping needs, let's chat and see where we can help you in exceeding your northbound shipping requirements.

📝📦🚢“Packing List in International Shipping and Logistics” 📣 Packing list is a document that accompanies a shipment of goods, providing a detailed list of the items included in the shipment.   📣 Packing list is an important document in the shipping process because it helps to ensure that the recipient receives the correct items in the correct quantities and facilitates the customs clearance process if the shipment crosses international borders. ➡️ Information Included in Packing List: 🔹 Description of goods, including item name, weight, quantity, dimensions, and order number. 🔹 HS (Harmonized System) code: A standardized international classification system of goods that determines the tax or tariff applicable to the specific item. 🔹 Date of shipment. 🔹 Country of Origin. 🔹 Shipper's Details. 🔹 Receiver's Details. 🔹 Bill of Lading Number. 🔹 Details of the packaging, including the number of boxes, pallets, or containers. 🔹 Gross Weight. 🔹 Packaging information. ☑ Benefits of Packing List in International Shipping: 1️⃣ Facilitates customs clearance procedures. 2️⃣ Prevents disputes between the buyer and the seller. 3️⃣ Provides a clear and accurate record of what has already been shipped. 4️⃣ Helps to ensure that all items are properly accounted for. 5️⃣ Reduces the risk of damage or loss of goods during transit. 6️⃣ Serves as a supporting document for a letter of credit. 7️⃣ Can be used to create a booking with the international carrier. 8️⃣ Helps indicate the information required for a certificate of origin. 9️⃣ Used to generate a bill of lading and support insurance claims. 🔔 Who Creates The Packing List? ✔︎️ The shipping packing list is usually created by the shipper, which is typically the company or individual who is sending the goods. ✔︎️ The shipper is responsible for preparing all of the necessary documentation for the shipment, including the packing list, and for ensuring that the shipment complies with all relevant regulations and requirements. ▶︎ Follow Eman Abouzeid 🔔 ▶︎ For Weekly Procurement & Supply Chain Insights #Packing_List #Supplychain #Logistics #Transportation #Shipping #Procurement_and_Supply_Chain_Insights

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

Logistics can make the difference between success 😎 & failure 😰, when you think that the event you've been working on for months is now hanging on the thread of logistics. We partner with the best in class logistic companies in order to eliminate all the ⛈️ surprises and we learn how to deliver faster & safer, every day 🌈. #GlobalEvents #GlobalProcurement #GlobalMarketingSolutionsIntegrator #Rainbowidea

Struggling with cash flow management? Unlock the benefits of bonded warehousing solutions! Following strict procedures, we are able to facilitate the storage of goods without receiving upfront payment of VAT and import duties. This means that these taxes are payable only after the products have been sold.   These customs controlled bonded warehouse facilities provide invaluable working capital assistance to businesses of all sizes, by alleviating money being tied up in inventory.   Contact our team of Supply Chain Specialists to find out more information. #supplychainmanagement #logistics #supplychain #warehousing #bondedwarehouse #cashflow #inventorymanagement