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DISTRIBUTION
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Buy for the demand, cost for the truth.

Purchase planning against forecast and lead time, supplier management, import shipments with freight and duty, and landed cost apportioned before the goods are first sold.

The problem

Most distributors know their supplier invoice price and estimate everything after it. Freight, duty and clearance are posted as period expenses, which means gross margin is systematically overstated on imported lines.

Lead time is the other blind spot: purchasing against an assumed lead time rather than the supplier's measured performance is what creates both stock-outs and excess in the same category.

Core workflow

Requirement to landed stock.

01
Requirement
From forecast, reorder point and open orders.
02
Supplier
Selected on price, lead time and reliability.
03
Purchase order
Quantity, price, Incoterm and expected date.
04
Shipment
Freight, insurance and clearance tracked.
05
Landed cost
All costs apportioned to the items received.
06
Receipt
Stock available at a cost that is complete.
What it covers

Planning

Reorder point and min/maxForecast-driven purchasingLead time by supplierMinimum order quantitySeasonal and promotional buys

Suppliers

Supplier register and termsPrice lists and agreementsLead time performanceQuality and rejection historySupplier rebates

Imports

Shipment trackingFreight and insuranceCustoms duty and clearanceLanded cost apportionmentMulti-currency and FX
Operational outcomes
Before first sale
Landed cost applied
+2.4 pts
Margin accuracy on imports
−18%
Stock-outs on planned lines
Measured
Supplier lead time, not assumed

Ranges observed on Al Jawad engagements. Targets agreed in assessment.

Apply landed cost to one shipment.

We take one import shipment and show the difference between invoice price and true landed cost.