IMPACTS OF TOTAL LANDED COST ON GLOBAL SUPPLY CHAIN

IMPACTS OF TOTAL LANDED COST ON GLOBAL SUPPLY CHAIN

Ppt 1

Definition: Landed cost is the total price of a product or a shipment once it has arrived at the doorstep of the buyer. Total landed cost includes the original amount used in the products, fees of transportation, custom fees, duties, taxes, tariffs, insurance fees, currency conversation, crating handling, and the payment fees (Guan et al.,2019)

Ppt2

Impacts of total landed cost on the global supply chain

• Returned items as an impact of landed cost
• Unnecessary costs
• Poor customer experience
• Lost clients
• Bad PR.
• It provides hazy pictures of retailers actual cost and profit
• It affects conversion rates at checkout and customers experience at the point of the survey
• It helps in capturing both evident and hidden value within the supply chain

Ppt 3

Returned items

Returned items occur when customers decide to take back the products he had purchased back to the seller, where he may choose to make another product or else receive his original payments.

Returned items may occur in a time when the products supplied to the buyer was not what he requested; it is expired or if the quality of the product did not meet his expectation.           Being that global supply chain deals with goods fro outside; therefore, there is a need to confirm goods sent to buyers before they are sent to him( Cohen & Lee, 2020).

PPT 4

Unnecessary costs

Landed costs may cause unnecessary costs in a situation where wrong products are sent to the buyers hence making buyers cancel that order, which will always lead to unnecessary expenses when transporting.

PPT 5

Poor customer experience

Landed costs make customers have a lousy experience, especially when they get products that were not requested for. It also happens in a situation where customers place an order, yet they delay or by the time he is getting them they are already expired, or they are packed poorly such that he cannot use it again (Jansson & Nordh,2016).

PPT 6

lost clients

Landed costs will always lead to losing clients, especially when they are charged at a high price that makes them feel that they cannot make it. Clients may choose to select another cheaper means of getting his products safe, fast, and at a favorable price.

Ppt 7

It provides hazy pictures of retailers actual cost and profit

Landed costs make suppliers feel uncertain about the price and the profit they make after delivering products to the buyer. In some situations, the organization may request order and promise to pay after receiving products, and they end up not paying as well as paying less amount as compared to what they had agreed.

Ppt 8

Affect conversation rates

It affects conversion rates at checkout and customer experience at the point of the survey.

Landed cost affects the price of conversation together with the experience. It can make customers not to demand its services again as well as losing means of communication (Salhieh et al.,2019).

Ppt 9

It helps in capturing both evident and hidden cost within the supply chain

Landed costs have not only impacted the organization negatively but it also positively has a positive effect. It aids in achieving the price of visible and hidden in the supply chain. It makes things in a transparent manner such that the organization is in a position of understanding every cost used within the period of operation Straube (Straube et al.,2016)

Ppt 10

Conclusion

In conclusion, landed cost the total price of the products once it is shipped to the doorstep of the buyer. It has positive and negative effects depending on the nature of products and the kind of the clients to whom goods were taken to. Therefore there is a need to consider that when delivering products, they should be according to customer order, and it should be delivered within the time he requested.

Reference

Cohen, M. A., & Lee, H. L. (2020). Designing the right global supply chain network. Manufacturing & Service Operations Management.

Guan, c., yahalom, s. S., germanakos, l., lapage, s., & mckeever, b. (2019). Global  soybean trade, supply chain, and tariffs. WIT Transactions on The Built      Environment, 187, 239-250.

Jansson, E., & Nordh, M. (2016). Cost comparison model on total landed cost for purchased        items: A case study of an industrial company.

Salhieh, L., Mdanat, M., Al-Shboul, M., & Samawi, G. (2019). Transportation Landed Cost as a Barrier to Intra-regional Trade. Journal of Borderlands Studies, 34(1), 89-103.

Straube, F., Durach, C. F., & Phung, J. (2016, April). Developing and applying a supplier  selection model to account for supplier risk impacts. In Supply Chain Forum: An         International Journal (Vol. 17, No.    2, pp. 68-77). Taylor & Francis.