1. Material costs - price, setup, tooling, transaction and other costs related to the
actual product or service delivered
2. Transportation costs - transportation, drayage, fuel surcharges and other fees
included in a freight rate
3. Inventory carrying costs - warehousing, handling, taxes, insurance, depreciation,
shrinkage, obsolescence, and other costs associated with maintaining inventories,
including the cost of money or opportunity costs
4. Cross-border taxes, tariffs, and duty costs - often referred to as landed costs,
which are the sum of duties, shipping, insurance and other fees and taxes for door to-door delivery
5. Supply and operational performance - the cost of noncompliance or
underperformance, which, if not managed properly, can offset any price variance
gains attained by shifting to an offshore source
6.Supply and operational risks -- including geopolitical factors, such as changes in
country leadership; tariff and policy changes; and instability caused by war and/or
terrorism or natural disasters (e.g., typhoons, earthquakes) and disease, as in
Severe Acute Respiratory Syndrome (SARS), all of which may disrupt supply lines
Titany answered the question on November 25, 2021 at 06:01
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