How to lower your import costs through transformation
What is landed cost?
Landed cost is the total price of a product or shipment once it has arrived at a buyer's doorstep. The landed cost includes the original price of the product, transportation fees (both inland and ocean), customs, duties, taxes, tariffs, insurance, currency conversion, crating, handling and payment fees.
+ Opportunity 1
Ship Direct to Your Client or Distributor (DropShip)
The additional cost of shipping to your facility, handling the product, shipping to your customer can be a significant expense. By shipping direct, you can lower your logistics costs by at least $2000 per shipment
+ Opportunity 2
Lower your administrative costs
On average, importers spend 24 hours processing a single order. Using $50 per hour as a reasonable cost for processing, that's $1200 per order. Cutting that administrative time in half by deploying collaborative communication tools will save you an additional $600.
+ Opportunity 3
Eliminate your defect/damage rates
If .5% of your order is received with damages or defects, that's an additional $250 in cost of goods, not including lost sales. Eliminating defects through quality assurance programs will eliminate this cost.
+ Opportunity 4
Eliminate your rework costs
Similarly, if you have to rework even a small percentage of this order, you will spend a minimum of $500. Repackaging, relabeling, re-handling goods at destination is the highest cost method, and also adds time. Detailed packaging and loading guides can eliminate this issue.
+ Opportunity 5
Improve your time to market
A recent survey indicates that up to 50% of goods aren't manufactured on time, aren't shipped on time or both. The inventory and sales costs are at least $50 per day so a two day delay adds another $100 in expense. Milestones and alerts will keep your products on track.