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Achieving Landed Costs and Product Line Net Margin

Achieving Landed Costs and Product Line Net Margin. Achieving Landed Costs. Defining Landed Costs. Landed Cost is the total cost of a product once it has arrived at the buyer’s door. This list can include:. the original cost of the item all brokerage and logistics fees

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Achieving Landed Costs and Product Line Net Margin

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  1. Achieving Landed Costsand Product Line Net Margin

  2. Achieving Landed Costs

  3. Defining Landed Costs Landed Cost is the total cost of a product once it has arrived at the buyer’s door. This list can include: • the original cost of the item • all brokerage and logistics fees • promotional spending • complete shipping costs • customs duties • tariffs and taxes • insurance • currency conversion • crating costs • handling fees • AND overhead Not all of these components are present in every shipment, but might be considered part of the landed cost.

  4. The players • Charity HegelDirector of Finance • Derek ChristensenDirector of IT • Kim OlesenSenior Category Analyst

  5. Litehouse • Litehouse manufactures refrigerated produce dressings. They offer the best quality, value and freshness in dressings one can buy. • Litehouse is listed in the top 100 privately held companies in the U.S. by Entrepreneur magazine. • Runs an ERP called Ross Systems, and has well more than a dozen data sources in its data warehouse. • Using rebranded TARGIT Decision Suite as business intelligence solution.

  6. Challenges in Landed Costs

  7. Solution(s) – 1st example

  8. Tying out to the GL Actual Coupon Spend: $121,423 { Spread to Location, Product Line Ex. $12,142 to NW and Dressing Spread $358 to NW and Dressing GL Coupons $125,000 $125,000 GL- $121,423 Actual $3,577

  9. Tying out to the GL – GOTCHAS!! What if we have spend but no Location? What if we have spend but no Product Line? We can use history (as a guide) but what if it is a new product? What if the president likes this method but the VP of Sales doesn’t? What if the moon really is made of green cheese?

  10. Solution(s) – 2nd example

  11. Project Cost Benefit Analysis

  12. Up and to the right – how GM should go!!

  13. Data, data everywhere 10 different data sources

  14. Categories and Detail

  15. Challenges in Landed Costs

  16. Benefits

  17. Company Overview Founded in 2005 to supply companies with BI solutions rather than tools Focus on Business to make a Business Intelligence Solution Focus on best of breed solutions that fit customers

  18. Contact Information MRP Lite – Purchasing Horizon – Reorder Point Analysis March 13th at 1:00 EST www.businessimpactinc.com Dan Cowan, dcowan@businessimpactinc.com 919-357-3545

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