A Report on Analyzing the Impacts of Total Landed Cost on Supply Chain

This report analyzes the multifaceted impacts of total landed cost on global supply chains. It explores how total landed cost, which includes manufacturing, transportation, and other costs, affects market structures by influencing the availability and affordability of goods and services. The report discusses how these costs can increase prices, impact sales volumes, and ensure product availability, ultimately affecting consumer behavior and organizational decision-making. Furthermore, the analysis highlights the potential of landed costs to protect consumers from additional expenses, attract new customers, and influence import taxes, providing a comprehensive overview of the strategic implications for businesses operating in the global market. The report references several academic papers to support its claims.

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Analyzing the impacts of total landed cost on global supply chain
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Total landed cost
• Total landed cost of a product or service entails all the cost that was incurred by
the organization or business within the supply chain globally so as to avail goods
and services to the market for consumption.
• Total landed cost of a products includes manufacturing, transportation and other
cost producer has to incur in the process of supplying goods to the market.

Impacts of total landed cost
• Total landed cost impacts the market structure positively by making goods and
services available to the consumers at affordable prices. By availing goods to the
market, consumers will not have to incur other landed cost like transportation or
manufacturing cost since goods and services have made available at their door
step for consumption.

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• Total landed cost will make total production cost of goods and services more
expensive since the companies will be forced to transport their goods and services
to the market in order to reach out to their targeted market. Due to high cost of
production, companies and other manufacturing firms will set higher prices in
order to compensate for the landing cost incurred.

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• Total landed cost on global supply chain will impact the prices for various landed
cost. This is possible because the management body of various manufacturing
companies would like to compensate for the cost incurred for supplying goods to
the market in order to maximize their profitability and to meet their set
organizational goals.

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• To the manufacturing firms, total landed cost will boost the sales volume of their
products and services since they are made available for the consumers in the
market as many users of such product and services will prefer buying readily
available products rather than importing those products hence increases sales
volume of that particular firm.

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• Total landed cost on global supply chain will ensure availability of goods and
services in the market. Firms will incur transportation costs in order to avail their
products in the market hence consumers will not run short of products in the
market due to high demand.

,
• Total landed cost will enable the organization to calculate all possible cost
involved in the production process so as to resolve into a rational decision on
whether to produce such product or not. With proper calculated landed cost, the
company will therefore set better prices of their products incorporating the landed
cost incurred.

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• Total landed cost on global supply chain will protect the consumer from incurring
such cost. For instance, consumer would have incurred transportation cost or duty
fee at the port on behalf of the organization hence through landed cost, consumers
will not incur such cost when they purchase goods from the market.

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• Incurring landed cost by the company will enable the company to attract new
customers to chose their services and products due to after sale services they are
offered like transportation cost.

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• Finally, landed cost on global supply chain by international companies will lead to
reduction of import tax by the local government due to the additional costs the
company has incurred to deliver their products in their home market.

References
• Gauvin, L., & Rebillard, C. C. (2018). Towards recoupling? Assessing the global impact of a Chinese
hard landing through trade and commodity price channels. The World Economy, 41(12), 3379-3415.
• Iakovou, E., Vlachos, D., & Chatzipanagioti, M. (2015). Design for Globalized Green Supply Chain
Networks with Nearshored Production. Markets, Business and Sustainability, 185.
• 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.
• Shang, L. K., & Chew, A. (2016). Assessing the Tax Impact of Brexit on Asia. Int'l Tax Rev., 27, 76.