at the same ex works price as the supplier in China.
Obviously, this is an oversimplification, but for a sample
business model it works well.
The product would then enter under NAFTA duty-free
regulations, and the freight costs would be reduced by 35
percent. The savings would be approximately 11 percent to
13 percent.
There are many options and variations that a supply
chain manager can manipulate to influence the landed cost
and obtain competitive advantage. The supply chain man-
ager must know what the best options are, what the variable
risks are, and how to provide the most cost-effective options
for the company.
Reducing Landed Costs
Over the past 30 years I have observed well over 1,000
corporations develop offshore manufacturing and build suc-
cessful ...