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Landed Costs

Landed cost is the total cost to get inventory to your warehouse — not just the supplier's quoted unit price.


Components

ComponentWhere it comes from in Synplex
Product costCaptured from PO line items: unit price × quantity − discount + tax
Shipping costEntered per shipment when creating a shipment record on the PO
Additional costsEntered on the PO itself (e.g. customs, duties, freight forwarder fees, inspection charges)
General discountA PO-level discount that reduces the total cost
Synplex computes total landed cost as:
subtotal product cost + shipping cost + additional costs − general discount

Computed Cost Fields on a PO

These fields are visible on the PO details page and updated automatically:

FieldDescription
subtotalProductCostComputedSum of all line item totals before PO-level discount
productTaxComputedSum of tax across all line items
productCostComputedProduct cost net of line item discounts
shippingCostComputedSum of shipping costs across all shipments
totalCostComputedFull landed cost (product cost + shipping + additional costs − general discount)
totalPaymentsComputedSum of payment records in paid or pending status

Why It Matters

Pricing and margin decisions made on supplier unit price alone understate your true cost. A product quoted at €45 may have a landed cost of €51+ once shipping and duties are added. Using totalCostComputed rather than the raw unit price gives a more accurate picture of profitability per unit.

Synplex surfaces totalCostComputed on the PO detail page so you always see the full picture before committing to a reorder.


Reducing Landed Costs

  • Consolidate shipments across multiple POs to reduce per-unit shipping cost
  • Use ocean freight for non-urgent replenishment — significantly cheaper than air for heavy or bulky goods
  • Source from lower-duty regions where trade agreements apply to your product category