IMPACTS OF TOTAL LANDED COST ON GLOBAL SUPPLY CHAIN
Ppt 1
Definition: Landed cost is defined as 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.
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
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- It helps in capturing both evident and hidden value within the supply chain
Ppt 3
Returned items
Returned items occur when customers may 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.
A global supply chain is a dynamic worldwide network when a company purchases or uses goods or services from external. It involves people, information, processes, and resources involved in the production, handling, and distribution of materials and finished products or providing a service to the customer. Landed cost is defined as the total price of a product or a shipment once it has arrived at the doorstep of the buyer
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 may make the customer 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.
PPT 6
lost clients
Landed cost 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
It affects conversion rates at checkout and customers 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 the speed of communication.
Ppt 9
It helps in capturing both evident and hidden cost within the supply chain
Landed costs doe have not only negative impacts but also positive effects. 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.
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 both 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
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