Proactively Manage the Import Process
Landed Cost Calculation
Issues and Challenges
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.
Challenges include:
- Calculating the total landed cost outcomes for multiple sourcing scenarios, while also adhering to prescribed business rules
- Creating comparable views of alternative sources of supply that consider all facets of total landed cost
- 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 landed cost calculations use the global trade content that is constantly updated and maintained in our Global Knowledge® database.
| Highlighted Capabilities |
|---|
|
Customer Testimonial: NCR Corporation
Josh Skeen, Senior Director of Global Logistics at NCR Corporation, shares his thoughts on the deep impact Amber Road has had on their business.
NCR wanted to reduce both the cost of goods sold and inventory levels in a strategic and thoughtful way. Leveraging Amber Road’s Supply Chain Visibility solution, NCR has been able to get their products in more places around the world, faster and cheaper.
Download The Evolution of Supply Chain Visibility and Total Landed Cost in the Global Supply Chain for NCR’s full success story on how they managed to get a handle on total landed costs worldwide.
KEY CUSTOMERS
“We measure how quickly we can move our goods: How efficient is our process? What delays do we experience at Customs? We’ve seen a positive return from the system.”
Vice President, Customs Compliance
Leggett & Platt
UPDATE YOUR EMAIL PREFERENCES
To receive FREE Global Trade
Management Tools and Resources
RELATED BLOG POSTS
- Duty Drawback Simplification: Your Questions Answered!
- Talking Logistics Interview with Gary Barraco - Digitization: Where Can You See Value?
- Tackle Trade Compliance with Global Trade Academy's 5-Day Import Boot Camp
- Importing from China? Your Products Could Be Hit With A 25 Percent “Special” Tariff!
- Tax Triumphs & Trade Troubles: What You Need to Know for 2018 Cross-border Trade
