What is landed cost in construction purchasing?
Landed cost is what a material costs by the time it reaches your store: the quoted price plus freight, loading, insurance, taxes and duties, less any discount. It is the figure quotations should be compared on, because the lowest quoted rate is often not the cheapest delivered.
Suppliers quote on different terms. One includes freight, another adds it on the bill, a third offers a discount for early payment. Comparing the quoted rates alone picks the wrong supplier.
Landed cost puts every quotation on the same footing, per unit, at your gate.
Landed cost = quoted price + freight and handling + taxes and duties + insurance − discounts
Supplier B quotes 598 per tonne and adds 63 for freight and tax: 661 landed. Supplier C quotes 606 and adds 30: 636 landed. C is cheaper, though B quoted less.
In ERP Infra
The price comparator ranks every quotation on landed cost, item by item, with the last rate paid shown beside it.
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