Why Distributors Need Landed Cost Tracking Software

1. Why Distributors Need Landed Cost Tracking Software What is Landed Cost Tracking Software? Landed cost tracking software allows distributors to record, manage and allocate landed costs to goods correctly. This is particularly important for distributors that source goods internationally, as this increases the complexity exponentially. And, as every wholesale distributor knows, supply chains have become increasingly global over the last few years. The right landed cost tracking software can provide you with the tools necessary to accurately track landed costs. And the landed cost inventory management software features can allocate these costs back to inventory to create the true costs necessary to come up with competitive pricing that is also profitable. It can help you to cut down on mistakes, oversights and misallocations that could have disastrous financial implications for your business.

2. What are Landed Costs? Landed costs are defined as all the costs including the manufacturer’s cost, that are incurred to get goods from the manufacturer’s plant to a distributor’s warehouse. Landed costs are present even for purchases from domestic manufacturers but these are often just goods and freight. In contrast, purchases of goods from a manufacturer in Asia (say) are much more complex. In this case, there could be costs to get the goods from the manufacturer’s plant to the port of origin and loaded onto a vessel, costs for ocean freight, costs for insurance, costs for wharfage and storage at the port of destination, costs for clearing the goods through customs, costs for import duties and tariffs, costs for transportation from the port to a railhead, costs of rail transportation, costs of local transportation to the warehouse, costs of irrevocable letters of credit, and costs offoreign exchange fluctuations. These types of costs are typical in every international trade transaction. Read more@ https://www.adssolutions.com/blog/why-distributors-need-landed-cost-tracking- software/