During the current phase of globalization most countries of the world are encouraging trade between themselves in order to grow and flourish. Most economies are cutting down on various tariff and non-tariff barriers and are making themselves available for import and export to the rest of the world. The cut throat competition, specially, in the manufacturing industry has been creating immense pressure on enterprises to optimize their operational costs. Companies, in order to remain competitive and profitable, often considering outsourcing to cheap labor destinations.
However, when all enterprises at some point of time consider ‘outsourcing’ as an option what is it that sets one of these organizations apart? The answer is – ‘Strategic import of supplies’.
Regardless of which part of the world you are located, the current global business landscape offers you a number of importing options to choose from.
Which option suits you the best depends upon a number of factors like – cost of import, time elapsed in importing, shipping term applied (Incoterm) and few other factors like mode of transport, documentation etc.
It is often difficult to draw a comparison taking into account of all of these factors - firstly since there is no single source of truth secondly there is no standard mechanism that can do that.
It often compels enterprises to take a decision based on their past business experience or based on a rough estimate of a few of the above factors mostly cost and time.
Oracle GTM, with its latest release has introduced a new feature called “Landed Cost Simulator”. It gives an unparalleled visibility on the advantages and disadvantages related to the various import options that an enterprise has, including cost, time, shipping terms, contract-conditions etc. It also lets you know if a particular import scenario will make you eligible for any ‘Tariff Preferences’ under a trade agreement.