Landed Cost per Unit
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Category:  
Analytical

Measures the total cost of a product, including manufacturing, shipping, and customs, per unit.

What it Measures ?

Calculates total cost per unit including shipping, duties, etc.

Relevant StakeHolders 

Procurement Controller, Finance Head

In-depth Use Case / Real-world Example

A company importing raw materials calculates Landed Cost per Unit by adding the cost of goods, transportation, and customs fees and dividing by the number of units imported. For example, if the total cost is ₹5 lakh for 1000 units, the Landed Cost per Unit is ₹500. This helps the company understand the true cost of imported goods and price products accurately.

KPI Definition

Business Value

Movement Direction

Sample Formula

Total Landed Costs / Units Purchased

Should Aim For
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