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Landed Cost Calculation
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Landed Cost Calculation
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Landed Cost Calculation Issues and Challenges
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Global sourcing professionals must weigh import controls, duties, freight costs,
and many other factors into a purchase decision. Due to the fact that
companies often don't have enough time or resources to analyze and optimize every
potential scenario, they may miss opportunities for savings and tax reductions.
The number of variables that go
into calculating total landed cost, and in weighing the number of potential
scenarios, makes manual computation nearly impossible. Both importers and
exporters must have a clear understanding of estimated landed cost to correctly set
prices, make accurate sourcing decisions, and assess transportation options.
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Challenges include:
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Calculating the total landed cost outcomes
for multiple sourcing scenarios, while also adhering to prescribed
business rules |
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Creating comparable views of alternative
sources of supply that consider all facets of total landed cost |
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Accounting for the impact of regulatory
controls, such as licensing, permit requirements, and quotas |
How Amber Road Can Help
Amber Road's planning tools allow you to compare
sourcing scenarios to inform your purchasing decision. By providing specific
inputs, such as
product classification, source and destination countries, INCOTERMS, etc., you can see a detailed analysis of the specific supply source
and understand the effect on the estimated landed cost when variables are
changed. Tweaking these scenarios allows procurement professionals to gain a
more complete picture of overall cost, time to delivery, route, and compliance
implications associated with each sourcing decision.
Amber Road makes it possible to
factor the complete spectrum of landed cost components - including the duties,
taxes and fees imposed by governments worldwide - into the picture. Our import
solutions' landed cost calculations use the global trade content that
is constantly updated and maintained in our
Global Knowledge® database.
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Features |
Benefits |
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Accurate
Landed Cost Calculation
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Compare estimated landed cost to and from
multiple locations |
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Calculate the final landed cost for a shipment in terms of
duties, excise tax, value-added tax, provincial taxes, profit taxes,
statistical taxes, customs fees, port charges, and all other import
taxes and accessorials |
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Display the tax formula in effect for each
scenario |
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Include estimated transportation and insurance costs |
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Export
Compliance Information |
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Highlight specific barriers from the country of export, such as
absolute embargoes, prohibitions or license requirements |
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Import
Compliance Information |
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Highlight specific barriers from the country of import such as anti-dumping duty, licenses, permits, quotas and visa restrictions |
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Save and
Reuse Scenarios |
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Save and reuse previous examples, modify assumptions and view new results |
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