Landed cost calculation is the process of determining the total cost of a product once it has arrived at its destination, including shipping, customs, duties, and other fees. This helps businesses understand the true cost of acquiring goods.Accurately calculating landed costs is essential for setting the correct product prices and improving profitability. By accounting for all associated costs, businesses can avoid underpricing their products and optimize margin management, particularly in industries with international sourcing.
What is landed cost calculation software?
Landed cost calculation software calculates the total cost of a product once it reaches its destination, including shipping, customs, duties, and other fees. This tool helps businesses understand the full cost of acquiring goods from international suppliers, allowing for better pricing and margin management.
Best landed cost calculation softwares
QuickBooks Commerce
QuickBooks Commerce provides a landed cost calculation tool that integrates with the business’s existing workflows to ensure accurate cost estimation. It helps businesses price products appropriately and calculate total acquisition costs.
ClearMetal
ClearMetal offers a platform for calculating landed costs, providing businesses with visibility into the costs of international shipments, including tariffs, shipping, and customs duties.
ShipBob
ShipBob is a fulfillment platform that includes landed cost calculation tools. It helps businesses calculate the total cost of importing goods, including shipping fees and customs duties.
Freightos
Freightos helps businesses calculate landed costs by providing access to real-time quotes from shipping carriers, ensuring that all associated fees are accounted for when pricing goods.
Transporeon
Transporeon includes advanced landed cost calculation features that enable businesses to manage international shipments and optimize procurement costs, ensuring accurate cost forecasting.
Landed cost calculation with Parabola
Understanding your true landed cost per SKU is critical for setting accurate pricing, identifying margin improvement opportunities, and negotiating better supplier and logistics rates. However, landed cost calculations often require consolidating and standardizing cost data from tons of hard-to-access data sources including freight and supplier invoices, costed BOMs, duties, and tariffs. As a result, this critical metric often lives in a convoluted spreadsheet that's a headache to update.
Parabola automates SKU-level landed cost calculations by standardizing and consolidating expenses across your supply chain. By combining information from freight invoice PDFs with data from suppliers and your ERP, you can dynamically calculate landed costs while ensuring accurate, real-time visibility into cost drivers across shipments and products.
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