Global Sourcing Logistics: How to Manage Risk and Gain Competitive Advantage in a Worldwide Marketplace

LANDED COSTS 41

expertise lent to accomplish the offshore manufacturing or

business development might not necessarily be factored

into the cost of goods purchased, but will in fact will affect

the bottom line. Foreign travel is expensive and could add

up to hundreds of thousands or even millions of dollars

each year. The incremental costs add up. They can range

from 3 percent to as much as 200 percent of the purchase

price, depending on the product and other variables.

Integrating Domestic Supply

Chain Requirements

It is very important to access the costs to move the goods

from inbound gateways (ports, airports, border crossings,

etc.) to final destination or point of use. Depending on

product details and final locations, the domestic trans-

portation costs ...