Ad Hoc Landed Cost Simulator Overview

The Landed Cost Simulator estimates landed cost for multiple scenarios in an ad hoc fashion helping you to select the best sourcing option.

Based on the information you provide related to the importing country and potential exporting countries, this simulator will calculate the landed cost for each one of these options (exporting countries) offering graphic comparison of the results and highlighting the lowest landed cost option.

The following is a summary of the functional steps to follow when simulating landed cost:

1. ENTER IMPORT SHIPMENT INFORMATION. You should provide basic Sourcing Information such as country of import, tariff code, exchange rate date, classification code or item, and quantities.
2. ASSIGN COSTS. GTM will assign costs (and any other related values) to the trade transaction based on business rules specified in the Logic Configuration (i.e. service parameters) you have selected.
3. TUNE COST AMOUNTS. You will be able to enter cost values manually or change cost amounts that have been calculated previously by the application.
4. RECALCULATE VALUES. GTM will recalculate cost values depending on the modifications you have done manually.
5. SHOW LANDED COST. GTM will calculate landed cost for the different sourcing options. The following sub-processes run in the background:
   1. Callout to an external tax engine to get estimated duty and taxes.
   2. Assign costs (and any other related values) required to estimate landed cost.
   3. Estimate landed cost for each one of the sourcing options. Each one of these options will have potentially multiple results as there could be more than one duty rate due to existing trade agreements associated with the tariff code.

6. SAVE SIMULATION DATA/VALUES. You can save the information entered in the simulation. You will be able to recover them and use them in future simulations. Results of the simulation will not be saved.