A competitive factory price can hide an expensive landed cost. Build the comparison around Incoterms 2020, not the quotation alone. Under FCA, the buyer usually controls main freight and insurance. Under DAP, the seller delivers to the named destination, while import duty and clearance typically remain with the buyer. Under DDP, the seller assumes broader delivery responsibilities, but local tax rules may complicate the offer. Incoterms allocate costs and risks; they do not replace a sales contract.

Use one spreadsheet for every supplier. Add unit price, MOQ, packaging, inland trucking, ocean or air freight, insurance, duty, brokerage, and taxes. Check the correct HS classification with a licensed customs professional. The World Bank’s 2023 Logistics Performance Index evaluates customs, infrastructure, international shipments, and timeliness. These factors can change the real cost more than a small unit-price discount. UNCTAD’s Review of Maritime Transport 2024 reported that global maritime trade grew 2.4% in 2023, while route disruptions increased schedule uncertainty.

Lead time needs two separate lines: production time and transport time. Ask for material certificates, inspection records, tolerances, and a sample approval plan. Record MOQ in kilograms and finished pieces. A low MOQ may carry a setup surcharge. A high MOQ may trap cash in inventory.

My early estimates were too optimistic because they ignored port delays and rework. That mistake is worth repeating on paper, not in production. Recheck freight quotes before approval, especially when delivery dates are tight.