Define where the comparison ends
Compare every offer at the same delivery destination, quantity, currency and date. A factory quotation and a delivered quotation are not directly comparable. Ask each supplier to identify its delivery terms and what is included before adding costs.
The International Trade Administration describes landed cost as the cost of a product after it reaches the buyer. Exact charges depend on the route and transaction. The worksheet below is an OEM2EMS planning aid, not a tariff quotation.
Build a cost bridge
| Cost group | Question to resolve | Evidence |
|---|---|---|
| Manufacturing | What quantity, revision, test and packaging scope does this price cover? | Current supplier quote |
| Transport | What freight, insurance and destination handling are included? | Forwarder quote for the same route |
| Import charges | Which duties, taxes and clearance charges apply? | Current broker advice and official requirements |
| Final delivery | What is needed to reach the agreed receiving location? | Local transport and receiving assumptions |
| Project costs | Which tooling, fixtures and qualification costs are one-time? | Separate project budget |
Avoid double counting
Mark each line as included, additional, not applicable or unresolved. Do not add freight again if the offer already includes it. Keep one-time engineering and qualification costs visible alongside the landed-cost comparison rather than silently blending them into unit price.
Illustrative planning example only: if goods cost 100 units of currency, transport 8, destination charges 3 and confirmed import charges 9, the modeled shipment cost is 120. This is arithmetic, not an estimate of actual duties or a recommended markup.
Compare scenarios rather than a single promise
- Use the same quantity and currency basis for each supplier.
- Record quotation validity and the exchange-rate date.
- Model a smaller order and a changed freight quote to expose sensitivity.
- Keep unconfirmed costs marked unresolved; zero is not a substitute for missing evidence.
- Ask a qualified broker to confirm classification, origin, tax treatment and current fees before commitment.
Record the decision
A lower modeled landed cost is only one part of supplier selection. Review technical fit, quality evidence, schedule assumptions and open issues alongside price. Use the supplier comparison scorecard and keep the cost calculation attached to the same revision of the RFQ.
References
References provide context and do not imply a partnership or endorsement.