A typology for selecting an appropriate Total Landed Cost method in international supplier selection decisions

The Total Landed Cost (TLC) often comprise a large share of the total international sourcing cost and thereby determine the cost-saving potential. On the one hand, companies often have to deal with a set of different international supplier selection situations; on the other hand, the literature deals with TLC methods varying in the degree of accuracy and complexity. Up to now, a link between the different situations and the various methods is missing. In consequence, this paper develops a typology for selecting an appropriate TLC method, based on an exploratory world café method with 24 purchasing and supply chain managers.