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	<title>Comments on: Is it possible to accurately calculate Total Landed Costs?</title>
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	<link>http://logisticsviewpoints.com/2009/02/02/is-it-possible-to-accurately-calculate-total-landed-costs/</link>
	<description>Providing logistics professionals with clear and concise analyses of Logistics Trends, Technologies, and Services</description>
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		<title>By: A van de Heetkamp</title>
		<link>http://logisticsviewpoints.com/2009/02/02/is-it-possible-to-accurately-calculate-total-landed-costs/comment-page-1/#comment-6</link>
		<dc:creator>A van de Heetkamp</dc:creator>
		<pubDate>Tue, 17 Feb 2009 21:18:57 +0000</pubDate>
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		<description>Both Steve Banker&#039;s and the referred article on off-shoring, emphasize the need for managing the complications associated with total landed cost calculations that are required to make informed off shoring decisions. 

To Banker’s comment on content providers, it is important to note that supporting the content does not imply the vendor also supports software to actually comply with the administrative requirements set forth by the local government. Additionally, two elements are important:
1.	Planners should not use (only) current duty rates but also future rates.
2.	The cost associated with complying with the preferential trade program that has been estimated to be between 2% and 15% need to be considered.

The point on content is equally important – what use is content if it is outdated? The decision maker should simply look at three things to assess whether the content provider is the right one:
1	Does the vendor offer a strict Service Level Agreement? 
2	What is the vendor’s content sourcing strategy? As Banker mentions: Are there local contacts? Does the vendor have experience and insight in remote regions, and can the vendor communicate in the local language and retrieve answers from remote locations?
3	The buyer should randomly check the content provided for up-to-date rates.

In conclusion, the importance of duties and taxes in total landed cost calculation can not be underestimated, but in order for this part of the analysis to be accurate, the manufacturer must ensure the right content provider is selected.</description>
		<content:encoded><![CDATA[<p>Both Steve Banker&#8217;s and the referred article on off-shoring, emphasize the need for managing the complications associated with total landed cost calculations that are required to make informed off shoring decisions. </p>
<p>To Banker’s comment on content providers, it is important to note that supporting the content does not imply the vendor also supports software to actually comply with the administrative requirements set forth by the local government. Additionally, two elements are important:<br />
1.	Planners should not use (only) current duty rates but also future rates.<br />
2.	The cost associated with complying with the preferential trade program that has been estimated to be between 2% and 15% need to be considered.</p>
<p>The point on content is equally important – what use is content if it is outdated? The decision maker should simply look at three things to assess whether the content provider is the right one:<br />
1	Does the vendor offer a strict Service Level Agreement?<br />
2	What is the vendor’s content sourcing strategy? As Banker mentions: Are there local contacts? Does the vendor have experience and insight in remote regions, and can the vendor communicate in the local language and retrieve answers from remote locations?<br />
3	The buyer should randomly check the content provided for up-to-date rates.</p>
<p>In conclusion, the importance of duties and taxes in total landed cost calculation can not be underestimated, but in order for this part of the analysis to be accurate, the manufacturer must ensure the right content provider is selected.</p>
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