Landed costs are the total cost of a commodity that you are buying or selling. In order to calculate landed cost there are many more factors beyond just the commodity cost. Also take into consideration freight cost, insurance, brokerage, duties, tariffs, taxes, currency conversions, packaging and delivery. By understanding your landed cost you have a true picture of the final commodity price. Other considerations should also be included in that calculation where delays or fines are incurred. If commodities are classified with the incorrect HS Codes that results in fines, that should also be included as part of costs incurred.
Where Strategic Can Help
Strategic can provide you with the assistance to calculate landed cost early on in the contract development phase. By anticipating costs early on rather than the final stage of the shipping process, the majority of costs can be captured when quoting to your customers.