Exercise 02

Rana Adeel
Task
1. Send a request for quotation (RFQ) on Alibaba to any supplier. Provide a screenshot before
sending.
2. What are the terms "Landing Cost" and "Lead time"?
Landing Cost" refers to the total cost of a product or goods once it has arrived at its final
destination, including all expenses associated with importing or shipping the product, such as
transportation fees, customs duties, taxes, insurance, and handling fees.

"Lead time" refers to the amount of time it takes for a product to be delivered or for an order to be
fulfilled from the time it is placed. This can include the time it takes to process the order,
manufacture or source the product, and ship it to the customer.

3. Which costs should one know before calculating a profit? What are some calculators that
can be used for profit calculations?
Before calculating profit, it's important to understand and account for all the costs associated with
producing and selling a product or service. Some of the costs that should be considered include:

o Cost of goods sold (COGS): The direct costs of producing or acquiring the product,
including materials, labor, and overhead expenses.

o Operating expenses: The indirect costs of running the business, such as rent, utilities,
salaries, marketing, and administrative expenses.

o Taxes and fees: Taxes and fees such as sales tax, income tax, and licensing fees.

o Interest and financing costs: The costs of financing the business, such as interest on
loans, credit card fees, and other financial charges.
 o Depreciation: The decrease in value of assets over time.

There are several calculators available online that can be used for profit calculations, including:

 Shopify's Profit Margin Calculator: This calculator allows users to input their product cost and
selling price to calculate their profit margin.
 Google Sheets Profit and Loss Template: This template allows users to input their revenue,
expenses, and taxes to calculate their profit or loss.
 QuickBooks Profit and Loss Report: This accounting software generates a profit and loss report
based on the user's income and expense data.

4. What is a "3rd Party Logistics" (3PL) service?

"Third Party Logistics" (3PL) service is a company that provides logistics and supply chain management
services to other companies. 3PL providers typically offer a range of services, including transportation,
warehousing, inventory management, order fulfillment, and freight forwarding.
In essence, 3PL providers act as intermediaries between companies that produce goods or products and
their customers. They manage the movement of goods from the manufacturer to the end customer,
handling all the logistics and transportation-related activities along the way.
3PL services can provide businesses with greater flexibility, increased efficiency, and a competitive
advantage in the marketplace.