About Landed Cost Simulator

Oracle Global Trade Management (GTM) is a global trade automation platform that enables companies to optimize and streamline business processes related to cross-border trade.

As a result of globalization and a shift to sourcing from low cost countries, supply chain management has become more complex. This complexity mostly affected the process of selecting sourcing options since it is not enough to make decisions based only on product price any more. In addition to introduction of international freight and insurance charges, other costs like duties and taxes, and other criteria like country of origin, Incoterms, mode of transportation, etc. became  part of the process. Consequently, in order to choose the optimum supplier, all costs occurring in delivery of the product at the buyer’s (importer’s) facility are estimated and called Estimated Landed Cost (ELC).  

Landed Cost Simulator is a tool that will enhance your sourcing option selection processes by providing you with flexibility and visibility. It supports different ELC formula creation for different criteria like country of import, country of export, Incoterms, etc. In addition to calculating the ELC for different sourcing options, GTM’s Landed Cost Simulator provides the ability to estimate the costs included in ELC. Furthermore, you have the visibility of Customs Value (duty base), Duty and Taxes, and financial benefits of the available Trade Agreements. 

GTM Landed Cost Simulator allows you to define flexible configuration settings to meet different business needs using a Landed Cost Simulator Logic Configuration.

You will be able to perform or run the following major processes.

Landed Cost Simulator

You can perform an ad hoc simulation process considering multiple sourcing scenarios. The complete process will assign a set of costs and their formulas based on the Logic Configuration, call an external tax engine to get estimated customs value, duty and taxes, and assign any additional cost and/or formula to calculate the estimated landed cost.

The logic configuration 'GTM Landed Cost Simulator' helps you to define Landed Cost Model Configurations, allowing you to group rules to assign value sets (e.g. costs) and their formulas. Create as many LANDED COST MODEL LOGIC CONFIGURATIONS as you require to support different business needs.

Refer to Ad Hoc Landed Cost Simulator for more information.

Landed Cost Estimation on Trade Transactions

You can also estimate landed cost on trade transactions and declarations. The complete process will assign the costs and their formulas, call an external tax engine to get estimated customs value, duty and taxes, and assign any additional costs and/or formula to calculate the estimated landed cost.

Use Compliance Rule Screening to assign the VALUE SETS (e.g. cost set) and VALUE QUALIFIER FORMULAS to the trade transaction. The service, ESTIMATE DUTY AND TAXES makes the callout to the external tax engine.

Refer to About Landed Cost Estimation on a Trade Transaction or a Declaration for more information.