The Need for Landed Cost Philippines
PUBLISHED: December 17, 2021
When shipping a goods from one country to another, shipping cost doesn’t always mean the shipping price. It also comes with axes, customs, insurance, and other fees that is why calculating for landed cost Philippines is important. Because without proper knowledge on knowing the landed cost Philippines can hurt your business really bad.
What is Landed Cost?
Landed Cost Philippines is the total amount of money it costs a vendor to manufacture a product, transport, and delivered to the customer. It comprises not only raw materials and shipping costs, but all additional fees like as import duties, shipping insurance, and other related costs.
What Makes Up a Landed Cost?
- Product – it pertains to the overall cost in acquiring, making and finishing one product.
- Shipping – this includes packing, crating, handling fees, and transportation.
- Customs – Customs clearance expenses occur whenever a company is importing or exporting products between different countries. These include duties, taxes, tariffs, levies, value-added tax (VAT), harbor fees, brokerage fees, and customs broker fees.
- Insurance – Any costs to protect and secure the product are included in this category, such as insurance, compliance, quality assurance, and safety stock.
- Overhead – These are the company’s ongoing operation expenses, including exchange rates, payment processing, and etc.
Why Calculated for the Landed Cost?
Business means money and wasting money means wasting business. Here a few reasons why calculating for the landed cost is important.
- Cash Flow Monitoring – without having the knowledge of the overall cost of importing or exporting goods and products, companies are in danger of running out funds thus being able to know the actual cost is important.
- Supply Chain Management – know when to ship and when not to ship goods or products especially when rates are too high.
- Sound Decision Making – by having the right knowledge and business software the company can easily manage and make better decision for the whole company.
Did you know that QNE Software can the ability to compute for the Landed Cost? QNE also offers a 60-days FREE Inventory Software Philippines License to let you experience the change that it can bring to your organization! Sign up now. Click the image below!