December 17, 2014  ·  Maddie Bell

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 supports unlimited consolidators for a single container, as well as more costing factors than any client has ever needed.

Consider this real-world scenario:

You are a beverage distributor based in the U.S. importing a Chianti from an Italian winery, two Bordeaux wines from France, and a Riesling from Germany. You purchase one hundred 12-bottle cases of each and ship them through a London consolidator before importing to the U.S.

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

Cost Component Amount
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 — allowing you to effectively price your goods.

For more information, please contact us.