Start with a deterministic cost model
Landed cost is only useful when the model is stable across every shipment. Define the same cost buckets and allocation method for each deal.
Capture costs at event time, not month-end
Margin decisions improve when freight, duties, and service charges are recorded as soon as they are known.
Event points to track
- Booking confirmation
- Port handling and customs events
- Final inland delivery
Normalize FX and value dates
If multiple currencies are involved, use explicit value dates and rate sources for every conversion. This makes margin comparisons audit-ready.
Validate against commercial outcomes
After shipment close, compare expected and realized margin at deal and item level. Use the variance to improve future pricing and procurement decisions.