Landed Cost Calculation

Landed Cost Calculation

The accurate calculation of landed cost when a shipping container has gone through one or more consolidators is necessary for reliable profitability analysis. Carillon®ERP, a leading Enterprise Resource Planning (ERP) software, supports unlimited consolidators for a single container, as well as more costing factors than any client has ever needed.

Imagine this real-world scenario:

You are a beverage distributor based in the U.S. who is importing a Chianti wine from an Italian winery, two different Bordeaux wines from France and a Riesling from Germany. You purchase one hundred 12-bottle cases of each of these wonderful European wines and to save on overall cost, you have the wineries send your orders to a London consolidator before you have them shipped to the U.S.

Upon receipt of the wine at your distribution warehouse, total landed costs have accumulated:

Invoiced purchase price: $6,000
Shipping fees and duties; $5,200
Storage container: $1,500
Consolidator: $2,500
USDA examination & x-rays: $930
Domestic delivery cost: $1,085

Total: $17,215

Total landed cost per case: $43.04

As you can see, landed costs can significantly impact the price of your purchase. An ERP software that completely supports landed cost calculations can help you develop a more accurate total landed cost before you get the bill. This early analysis will help you effectively price the goods.

landed-cost-calculationTo learn how an Accounting/ERP system can simplify your landed costs, contact:

Caroline Stockard
Marketing & Sales Associate
972-437-2230 ext. 119