Business OntologyBusiness Ontology

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Which supplier quote is actually cheapest?

The lowest unit price is not always the lowest cost. Put quotes on the same quantity with shipping and duty included, then weigh speed and terms.

Example: 2,000 units from three suppliers

Supplier A
Supplier B
Supplier C

Supplier C has the lowest landed cost at $5 per unit ($9,800 total).

Supplier A landed cost
$10,704 · $5.35/unit
Supplier A lead time and payment terms
35 days · pay in 30 days
Supplier B landed cost
$11,464 · $5.73/unit
Supplier B lead time and payment terms
55 days · pay in 0 days
Supplier C landed cost
$9,800 · $4.90/unit
Supplier C lead time and payment terms
14 days · pay in 45 days
How this is calculated (v1.0.0)
  • landed cost = unit price × quantity × (1 + duty) + shipping
  • per unit = landed cost ÷ quantity
  • Set a supplier's unit price to 0 to leave it out.

Continuing carries these exact inputs and results into Business Ontology — 3 free runs, no account needed.