KudoZ home » English » Business/Commerce (general)

landed cost

English translation: s. below

Login or register (free and only takes a few minutes) to participate in this question.

You will also have access to many other tools and opportunities designed for those who have language-related jobs
(or are passionate about them). Participation is free and the site has a strict confidentiality policy.
10:24 Oct 25, 2005
English to English translations [PRO]
Bus/Financial - Business/Commerce (general) / trade
English term or phrase: landed cost
could anyone please specify what is exactly meant by "landed cost" when importing goods
danka
English translation:s. below
Explanation:
Landed cost is a term used to describe the complete costs associated with an order.


The "total landed cost" or "landed cost" includes all of the costs to obtain and receive the purchased product. It is important to recognize that the landed cost includes more than just the price of the item itself. Sometimes a supplier may offer a lower item price than a competitor offers, but at a higher landed cost. As such, landed cost is usually a better criteria for supplier selection than simply item cost, since it not only takes into account the cost of the item but also other purchasing costs.

To introduce elements of landed cost we present the following example:

Provo Power is looking for a new supplier of coal. They have an annual need of 120 tons, which is 10 tons per month. Supplier A sells coal for $1,000 per ton and provides a 5 percent discount for any orders of 15 tons or more. Supplier B sells coal for $1,200 per ton, and provides a 10 percent discount for any orders of 20 tons or more. In addition, supplier B offers payment terms of 2/10,net 30 whereas supplier A simply offers net 30.

Supplier A is 400 miles from the Provo Power plant, and supplier B is 200 miles away. Coal is shipped by train to Provo Power which pays the shipping charges. A full train car load is 20 tons, and shipping a full train car costs $30 per mile. A less-than-full train car costs $2 per ton per mile.

The company is considering either placing 12 orders per year (one each month) or 6 orders per year (one every other month). Other relevant facts include:

order processing cost $50 per order
shipment receiving cost $200 (for any amount)
company cost of capital 20% per year

Hope it helps.
Selected response from:

Emilie
Grading comment
thanks a lot for your detailed explanation
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +1s. below
Emilie
1Cost of product plus relevant logistics costs
fareedeh ghassemi


  

Answers


4 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
s. below


Explanation:
Landed cost is a term used to describe the complete costs associated with an order.


The "total landed cost" or "landed cost" includes all of the costs to obtain and receive the purchased product. It is important to recognize that the landed cost includes more than just the price of the item itself. Sometimes a supplier may offer a lower item price than a competitor offers, but at a higher landed cost. As such, landed cost is usually a better criteria for supplier selection than simply item cost, since it not only takes into account the cost of the item but also other purchasing costs.

To introduce elements of landed cost we present the following example:

Provo Power is looking for a new supplier of coal. They have an annual need of 120 tons, which is 10 tons per month. Supplier A sells coal for $1,000 per ton and provides a 5 percent discount for any orders of 15 tons or more. Supplier B sells coal for $1,200 per ton, and provides a 10 percent discount for any orders of 20 tons or more. In addition, supplier B offers payment terms of 2/10,net 30 whereas supplier A simply offers net 30.

Supplier A is 400 miles from the Provo Power plant, and supplier B is 200 miles away. Coal is shipped by train to Provo Power which pays the shipping charges. A full train car load is 20 tons, and shipping a full train car costs $30 per mile. A less-than-full train car costs $2 per ton per mile.

The company is considering either placing 12 orders per year (one each month) or 6 orders per year (one every other month). Other relevant facts include:

order processing cost $50 per order
shipment receiving cost $200 (for any amount)
company cost of capital 20% per year

Hope it helps.

Emilie
Specializes in field
Native speaker of: Native in PortuguesePortuguese
PRO pts in category: 4
Grading comment
thanks a lot for your detailed explanation

Peer comments on this answer (and responses from the answerer)
agree  Jack Doughty
9 mins
  -> Thank you very much!
Login to enter a peer comment (or grade)

6 mins   confidence: Answerer confidence 1/5Answerer confidence 1/5
Cost of product plus relevant logistics costs


Explanation:
Total expense of receiving goods at place of retail sale, including retail purchase price and transportation charges.
www.cnf.com/newsroom/glossary.asp
www.inboundlogistics.com/glossary/l.shtml


fareedeh ghassemi
Local time: 04:07
Login to enter a peer comment (or grade)




Return to KudoZ list


Changes made by editors
Oct 25, 2005 - Changes made by Steffen Walter:
LevelNon-PRO » PRO


KudoZ™ translation help
The KudoZ network provides a framework for translators and others to assist each other with translations or explanations of terms and short phrases.



See also:



Term search
  • All of ProZ.com
  • Term search
  • Jobs
  • Forums
  • Multiple search