Proactively Manage the Import Process

Landed Cost Calculation

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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.

 

 

 

Features Benefits

Accurate Landed Cost Calculation

Compare estimated landed cost to and from multiple locations
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
Display the tax formula in effect for each scenario
Include estimated transportation and insurance costs

Export Compliance Information

Highlight specific barriers from the country of export, such as absolute embargoes, prohibitions or license requirements

Import Compliance Information

Highlight specific barriers from the country of import such as anti-dumping duty, licenses, permits, quotas and visa restrictions

Save and Reuse Scenarios

Save and reuse previous examples, modify assumptions and view new results

Tyco Security: Customer Testimonial

Vice President of International Trade Compliance at Tyco Security discusses how Amber Road's global management solutions enable its supply chain to stay optimized.

KEY CUSTOMERS

AgilentCiscoDonaldsonGeneral ElectricLeggett & PlattUPS

“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

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