Total Landed Cost

(TLC)

TLC helps capture both obvious and hidden costs in the supply chain. It includes item cost, transportation, warehousing, tariffs and taxes. In some environments it also includes inventory carrying costs, currency exchange costs, financial impact of carbon footprint and other cost categories such as corporate taxes and grants. From a seller’s point of view, TLC is the sum of all costs associated with making and delivering products to the point where they produce revenue (usually the customer’s doorstep). From a buyer’s point of view, it makes sense to use TLC to compare purchase of goods from different countries.