Maximize Profitability with Landed Cost Insights with Dynamics 365


The long-awaited Landed cost module is finally available in Microsoft D365 F&SCM version 10.0.17 (2021 release wave 1). You’ll be happy to know that you now have financial visibility and control over imported freight, from the manufacturer to the warehouse. If you are working in the supply chain sector, you are aware that Landed costs can account for an estimated 40%, and above, of the total cost of each imported item. This means there can be more shipping costs than the actual shipping price. Tax, insurance, duty rates, and other fees are always likely to skyrocket your costs. This is the truest cost of shipment, known as the Landed cost.  

The new Landed cost feature gives businesses increased insight into their supply chain visibility, through the product journey, and maximizes item profitability. It provides the ability for all inbound orders to be tracked throughout the journey from start to finish, adding all costs associated. Therefore, making it easy for you to work with accurate expenses.  

What is Landed Cost? 

Landed cost is the sum of all different costs to get the product delivered to your customer’s door. The Landed cost includes the original price of the product, transportation fees, customs, duties, taxes, tariffs, insurance, currency conversion, handling, and payment fees.  

Product + Freight + Customs + Risk + Overhead = Landed Cost 

Why Should Landed Cost be Important to You?  

The main objective of calculating your total Landed cost, is to ensure that you discover both apparent and concealed expenses during your supply chain. Finding a product’s accurate price can improve your decision-making, with regards to how to get your products to the customer, in the most cost-efficient way. 

As a result, automating Landed cost calculations is essential in today’s global economy. No accounting department has time to perform the manual calculations, and no business owner wants to lose out on profits. Outside of your employees, inventory efficiency is one of the most important places your bottom-line leaks away, especially when it comes to calculating accurate Landed costs. 

It allows you to correctly calculate profit on each unit you ship, giving you a clear vision of your business’ performance. 

  • You will make sure you’re getting the most profitable price for each product. By knowing the true price of every item. This means you will be closer to establishing what price to sell them for, and the maximum discount you can offer. 
  • You will gain a clear vision of your supply chain and all associated costs, which will then, in turn, allow you to identify where you can make savings. 
  • You will enjoy improved compliance around supply chain and business processes, having clearer indications of your due dates to track invoices. 
  • You will have the opportunity to generate reports and conduct cost comparisons and analysis.    

Benefits: Improve Costs and Increase Customer Satisfaction  

Using data entries, the Landed cost features allow you to document end-to-end expenses, quickly and accurately. It automates administrative tasks and helps you avoid human errors, that can potentially lead to a lack of profitability. Below are other benefits that you can take advantage of:  

  • Increase Supply Chain Visibility 

You can follow the status and movements of outbound goods until they reach the destination warehouse. You can engage with the easy-to-navigate interface, taking notes of delivery dates and any inconveniences. 

  • Accurate Information 

The Landed cost module D365 gives you an accurate calculation, assisting you to avoid unexpected expenses.   

  • Reduced Expenses 

The Landed cost feature facilitates you to consider all the expenses that go into your shipping. This ensures that you reduce irrelevant costs and reach a point of improving your profit margins.  

  • Streamlined Production  

With automated production and administerial tasks at hand, you can now make business decisions, in confidence, knowing you have accurate data-driven insights to improve any processes that are inefficient.   

  • Maximize item profitability 

Now that you are working with accurate costs, you will have better assessments on what you are spending on, and any risks that may arise. The costs allocation and data will also provide a roadmap of what you need to do, to reach profit.  


The days of having no access to data, highly complex shipping, no visibility, and a lack of operational insights are over. The Landed cost feature is transforming the business logistics and financial operations sector, by advancing supply chain management. You can now decrease the overhead from your supply chain processes, streamline your operations, and accelerate your customer journey and satisfaction. This will result in one of the main goals for organizations – to improve the return of investment all year round, maximizing profitability and reaching business success.  


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