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Sourcing Optimization

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Issues and Challenges

One of the most strategic things a company can do in the area of global trade is to optimize its sourcing decisions. What are the lowest cost sources of supply for the products procured internationally? While most companies have already rationalized their sourcing decisions, a common pitfall is the omission of details that can greatly affect cost. Beyond the purchase price of the goods, transportation costs, lead times, service levels, etc. - which most companies already factor into sourcing decisions - what about the detailed duties, taxes and fees?

Many global companies use disparate processes and systems, as well as outdated information, resulting in lower margins and higher costs. By adopting control and management systems to accurately calculate total landed costs and analyze all costs to fulfill customer orders, companies can better manage and understand the impact of sourcing decisions across the design-to-deliver process.

How Amber Road Can Help

Amber Road’s Sourcing Optimization solution provides a comprehensive view into extended design-to-deliver costs. The solution allows for comparisons of various sourcing scenarios and actual landed costs to improve purchasing decisions. By providing specific inputs, such as product classification, source and destination countries, INCOTERMS, etc., organizations can better understand the effect on total landed costs when variables are changed. Modifying and reviewing all scenarios allows procurement professionals to gain a more complete picture of estimated and actual costs, time to delivery, route, and compliance implications associated with each sourcing decision.

Highlighted Capabilities
  • Cost-to-Serve analysis helps 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
  • Fully analyze and understand the costs and risks associated with each sourcing option, including transportation and insurance costs
  • Consider all compliance implications with access to the industry’s most comprehensive global trade content
  • Save and reuse previous examples, modify assumptions and view new results

Supply Chain Collaboration

Today, supply chain collaboration between buyers and their overseas vendors is usually conducted with an unending merry-go-round of Excel documents, emails, last minute changes and zero visibility into the real-time status of orders and shipments.

We change that by providing a cloud-based platform that all parties access across the supply chain.



"With Amber Road's cloud-based platform, we improved our supplier and partner collaboration across all phases of the design-to-delivery process, which helped reduce costs, shorten cycle times, and increase supply chain flexibility.”


Vice President, Supply Chain Planning and Operations


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