Gartner Newsletter Amber Road Issue 1 120518.pdf

8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf

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Many organizations turn to enterprise

maturity models as an input to strategic

planning. With an objective assessment

of performance across key metrics,

organizations can use these maturity models

to help define better business practices and

to time the purchase of technology solutions

to support them.

Although most large companies have

been global for some time, Global Trade

Management (GTM) planning and

executing the steps required to move goods

across international borders has been

largely overlooked. That is to say, compared

to other areas within the supply chain, such

as warehouse management, transportation

management and manufacturing planning,

organizations have not invested as much timeand energy in optimizing GTM.

However, increased scrutiny on supply

chain security and more stringent regulatory

requirements have brought GTM into focus

as a distinct concern. As more organizations

expand their global trade presence, GTM

solutions are being implemented both for

financial gain through increased efficiency

and for risk mitigation through automated

compliance.

OverviewGartner Research has designed a maturity

model specifically for organizations

engaged in global trade. In this research,

Gartner outlines the defining characteristics

of companies in each of the four stages

of maturity for global trade management

(GTM): compliance/logistics, organization,

technology, and measurement. With clearly

defined characteristics for each stage of

maturity, Gartner makes it possible for

organizations to assess where they are

today, and to chart a reasonable course for

improvement.

The following pages contain excerpts

from Gartners Global Trade Management

Maturity Model, as well as examples of

how Amber Roads solutions can assist

organizations with driving value at eachstage of maturity, and bridge from one

stage to the next.

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Gartner Research:Global Trade ManagementMaturity Model Supports ValueChain Transformation

6

Taking the First Step in GTM

Maturity

9Building on Success:

Moving from Cost-Focused toDemand-Driven

10Reaching the Top:

Moving from Demand-Driven toValue-Driven

15Turning Recommendations intoReality with Amber Roads GlobalTrade Management Solutions

16

About Amber Road

Featuring research from

Issue 1

A Model for Value ChainTransformation:Achieving Global Trade Management Maturity with Amber Road


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A Model for Value Chain Transformation is published by Amber Road. Editorial supplied by Amber Road is independent of Gartner analysis. All Gartner research is 2012 by Gartner, Inc. All rights reserved. All

Gartner materials are used with Gartners permission. The use or publication of Gartner research does not indicate Gartners endorsement of Amber Roads products and/or strategies. Reproduction or distribution o

this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accurac

completeness or adequacy of such information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein

are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used

as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartners Board of Directors may include senior manager

of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence an

integrity of Gartner research, see Guiding Principles on Independence and Objectivity on its website, http://www.gartner.com/technology/about/ombudsman/omb_guide2.jsp.

From the Gartner files

Global Trade Management MaturityModel Supports Value ChainTransformation

Companies must integrate global trademanagement and oversight into the

overall demand-driven, global logistics

strategy. This ensures that desired customer

outcomes are met in a cost-effective manner,

while reducing complexity and risk.

Overview

In this research, Gartner outlines the defining

characteristics of companies in each of

the four stages of maturity for global trade

management (GTM). We identify what

good looks like, as well as what separates

the leaders from the pack.

Key Findings

Based on our conversations, most

companies are in Stage 1 or Stage 2 GTM

maturity. They focus on internal-facing

processes, with the goal of lowering

costs, rather than focusing on customer

outcomes.

Many rms dont have the executive

oversight or commitment to drive the

value chain transformation of GTM into

maturity Stages 3 or 4.

Most companies have a fragmented

technology landscape, which inhibits

advancement in maturity.

Recommendations

Identify your companys stage of GTM

maturity.

Establish a global, centralized

organization for GTM oversight. Assign

overall GTM responsibility to one

executive (for example, the CXO or senior

VP of supply chain).

Standardize global processes and

technology with regional variations, as

compliance and cultural differences

dictate.

Dene common metrics for which all

groups and functions are accountable,

with the end-customer outcome in mind.

Use Web-based, cloud-based or

software-as-a-service (SaaS) technology

platforms to link all parties in the supply

chain to real-time logistics, compliance

and financial information.

Analysis

As Gartner outlines in Stages of ValueChain Transformation, Revisited, value

chain transformation is a journey. Here, we

examine this framework as it applies to GTM

operations, presenting a maturity model to

help companies gauge the sophistication of

their GTM processes.

Gartner defines GTM as the processesand technologies used to support

the unique logistical, regulatory and

financial aspects of the import and export

processes. Constituents include carriers,

freight forwarders, customs brokers

and shippers. GTM tends to be a very

fractured process, since it incorporates

roles and responsibilities from various

groups: logistics, compliance, finance and

sourcing. These groups have typically acte

semiautonomously, with no executive

pulling them together. Metrics are defined

independently, which often leads toconflicting outcomes.

The Four Stages of MaturityThe first step is to identify your companys

stage in the maturity model. Incorrectly

assessing your position will lead to flawed

approaches. For example, employing

automation and technology too early will

only automate flawed processes, which

wont drive transformation. Another exam

is if global processes are put in place,

but the proper organizational structure

and executive commitment arent, thenenforcement becomes a problem.

Here, we outline the four stages of

maturity and the defining characteristics o

companies at each stage (see Figure 1).
http://www.gartner.com/technology/about/ombudsman/omb_guide2.jsphttp://www.gartner.com/technology/about/ombudsman/omb_guide2.jsp


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Stage 1: Market-FocusedIn this stage, companies are top-line-

driven and usually organized by business

unit, with local, functional priorities. For

example, sales might take an order for

30,000 items and promise delivery without

interacting with manufacturing or logistics.

Supply chain and logistics are prioritized to

enable and support local market growth.

Logistics, compliance, finance, sourcing and

product design typically act independently.

Global operations are often disconnected

from the domestic supply chain. Incentive

measurements are functional and notoptimized. Demand is an assumption.

The company uses diverse, disconnected

systems and manual processes. Logistics

contracting and auditing that is, if there

is any are handled in spreadsheets.

Theres no risk or cost analysis of compliance

processes. Leadership isnt driving an

end-to-end, companywide and systematic

process to become more customer-driven

and outcome-based.

Stage 2: Cost-FocusedCompanies realize that opportunities for

greater scale and efficiency exist if theres

consolidation of logistics, compliance and

technology processes. However, the culture

is still largely internally focused and aimed

at large, visible costs within departments or

business units, not cross-functionally. Metrics

focus on transactional waste, efficiency, costs

and, to a degree, basic risk management.

Projects are measured on cost-reducing

metrics, not customer satisfaction or

total cost-to-serve (CTS) measurements.

Companies begin to improve, update, andconsolidate technology and connections with

third-party logistics (3PLs) and suppliers, but

information sharing is typically one-way or

cost-focused. Logistics outsourcing initiatives

are predominant at this stage. Typically,

theres still little or no connection between

these cost-reducing efforts and a greater

transformational change strategy.

Source: Gartner (March 2011)

FIGURE 1Value Chain Transformation/Change Maturity

Stage 3: Demand-Driven

As companies and leadership mature, they

realize that an integrated, customer-focused

supply chain is the priority. This integration

and early-stage process focus supports

initial collaboration with trading partners

to fulfill customer needs. These changes

drive new thinking on metrics. The focus

shifts from costs and compliance to risk and

outcomes. GTM becomes part of sales and

operations planning (S&OP), which enables

the conscious trade-offs required to deliver

profitable, perfect orders. Transformational

processes across the value network areorganizationally driven versus functionally

led, with the scope extended to incorporate

external customers and suppliers.

Stage 4: Value-Driven

Organizations in Stage 4 are focused on

sensing and translating value, as well as

working with end-to-end, internal and

external networks. This focus includes

creating value with trading partners through

strong, strategic alignment and collaboration

processes supported by win-win, trust-

based cultural characteristics. This amplifiedalignment and change leadership across

the extended network are focused on

profitable supply/demand synchronization,

as well as increased and sustainable

business performance. All network partners

in this stage are orchestrating the network

and adding value collaboratively, while

making balanced, profitable trade-offs.

Logistics, compliance, finance, 3PLs, banks

and suppliers all contribute to the desired

outcomes.

We include more details on the definingorganizational structure, technology footprint

and metrics commonly exhibited at each

stage in the transformation in Table 1.


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Market-Focused Cost-Focused Demand-Driven Value-Driven

GTM(Compliance andLogistics)

Complete reliance on broker/forwarder

Decentralized, separate

groups by role andgeography

Manual document creation

and transfer

Little global visibility

Centralized function; globalcontracts

Automated document

creation

Landed-cost considerations

Automate compliance

functions

Technology consolidation

Integrated planning andexecution

Close involvement with

regulatory decision makers

C-TPAT and other

certifications

Reclassication opportunities

Performance diagnostics

Education and training

Build portable processes for

use by third parties

Free trade zones andincentives modeled

Risk management

considerations

Global, centralized oversight

Logistics, compliance,

finance, risk, 3PLs and

supply collaborate todevelop supply strategy

Compliance mandates

analyzed for current andfuture opportunities for

savings, and to reduce risk

Collaborative networkdesign to meet customer

service levels, while reducing

risk

Global, adaptive, Web-

based technology system

Organization Stand-alone departments

Functional independence

Separate metrics

In-ghting

Nonspecialized staff

No growth programs; limited

training

No alignment to businessobjectives

Beginning connections

between functions

Development of internal

metrics and systems

Standardization of global

processes established

Focus on reducing self-

inflicted wounds

Incentive programs tied todepartmental objectives

Leadership established over

cross-functional processes

Global, centralized functions

Well-managed relationships

with third parties

Organization pursuingcollaborative opportunities

with customers and

suppliers

Incentives tied to overall

business objectives

Integrating logistics withcustomer service

Specialized education and

training programs

Cross-funct ional group

advising on logistics,compliance, sourcing and

customer service issues

Organization viewed as

strategic differentiator

Team of highly specialized

logistics and compliance

professionals

Continuous improvement

culture

Tightly integrated into

technology and innovationactivities

Table 1. GTM Maturity Defining Characteristics


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Transforming to a demand-driven,

customer-focused company can take years,

and aligning the companys GTM operationsto this strategy can be a daunting task.

Although many organizations start by

focusing on projects to improve logistics

and compliance processes as well as

to implement enabling technology, the

Market-Focused Cost-Focused Demand-Driven Value-Driven

Technology Manual; paper based

Separate legacy systems

Reliance on broker and 3PLtechnology

Difcul t to extract accurate,

historical spending data andperfect-order measurements

Master data inaccuracies

Standardized, automated

technology by function or

region

Electronic data interchange

(EDI) adoption

ERP integration; masterdata management (MDM)

and operational interfaces

with sales and purchase

orders

Adoption of basic report ing

and analytics tools

Standardized, automated

technology by function or

region

Visibility, collaboration and

planning tools invoked

Use of provider/suppl iercollaboration portals

Advanced, specialized

analytics tools

Web-based, real-time

collaborative plat form used

by all parties in the value

chain

Flexible, adaptive, risk-

responsive systems

Impact of decisions available

in near real time

Technology supports end-customer goals

Measurements Measurements siloed byrole, business unit and/or

geography

Historical or current costs

Little or no auditing/

oversight

No connection to customer

outcomes, risk or supply

Heavy reliance on thirdparties

Freight costs andassociated fees

Taxes and duties

Fill rate

On-time ship

Total landed cost

Beginning measurement of

third parties

Total delivered cost

Third-party cost auditing

and collaboration towardresolutions

Supplier/vendor

performance analytics

Analysis of regional trade

agreements

Analysis of productclassifications

Integrated analytics

CTS understood at the

product family and customersegment level

Logistics and compliance

measurements tieddirectly to customer service

measurements and

corporate financials

Source: Gartner (March 2011)

greatest gains are achieved by addressing

the organizational and cultural elements.

Without cultural change, transformationcant happen, and the best a company

can hope for is Stage 3 maturity. Visionary

leadership, constant persuasion and metrics

alignment are essential to sustaining

a continued effort and, ultimately, for

achieving success.

Upcoming research will cover specic steps

and best practices on how to move through

this value chain transformation as it pertainsto a companys GTM operations.

Source: Gartner Research G00211123, W. McNeill, G. Aimi, 30 March 201


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Trade Wizards Features

Trade Wizards enables organizations to make quick, interactive queries, using only a web browser. Key features include:

Global Knowledge

Amber Road maintains the most

comprehensive database of global trade

content and international business rules

available today. We cover over 120 countries

or roughly 95% of world trade, making our

trade content and content management

process the best in the industry. This content

Global Knowledge is tightly integrated

within our suite of GTM software, and

includes:

Harmonized Schedule chapters for over

120 countries

Import duty rates

HS classication numbers

Over 200 restricted party lists

Preferential programs

Product classification Classif y a product in terms of its HS, ECN, Schedule B or ALADI using common words or legal denitions

Compare related classications

Map a classication from one country to the corresponding tarif f in any other country

Landed cost calculator Calculate the 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

Include estimated transpor tation and insurance costs

Trade party screening Establish whether a company or individual is present on any ofcial restric ted party or trans-shipment list, banned fromimport or export transactions, sanctioned by a government for performing illegal acts or a forced child labor or convict

labor violator

Screen using over 200 lists including those issued by the United Nations, European Union, United States, Canada andJapan

Export and import controls Identify applicable export controls such as specific licenses, certificates, inspections or permits required to export dual-use

or restricted products

Identif y applicable import controls such as licenses, permits, certicates, absolute and tarif f rate quotas, anti-dumping andcountervailing duties

Document determination Identify required commercial and government documents for a combination of country of export, country of import, export

HS number and import HS number

Display the number of copies required, appropriate business rules, language requirements and authorities for eachdocument

Trade documents

Dual-use control lists

Import regulations - licenses and visas,

permits, quotas, anti-dumping duties

EU, UN and national-level embargo and

sanction rules

We have been using Amber Road as a content provider for export compliance.The content is accurate and delivered on time, allowing us fast and efficient

implementation globally. Its software solution for export controls is one of the best in

the business, and has kept us penalty-free.

Director, Global Trade ComplianceAir Products & Chemicals Inc.


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Accurate cost

calculation

Compare total landed cost from one origin to and from multip

locations

Calculate precise results for all duties and taxes

Export compliance

management

Highlight specic barriers to export ing, such as absolute

embargoes, prohibitions or license requirements

Import compliance

management

Highlight specic barriers to importing such as anti-dumping

duty, licenses, permits, quotas and visa restrictions

Sophisticated scenario

planning

Save and re-open scenarios, modify assumptions and view

new results

An Export Management and Compliance Program (EMCP) can assistyou in developing a system to capture analysis, decisions, accountability

and implementing procedures to stay in compliance with the Export

Administration Regulations (EAR).

Bureau of Industry & Security (BIS)

TRADE PLANNER

With the increasing pressure to cut costs,

accommodate new trade regulations, and

take advantage of new preferential trade

agreements, businesses need planning

tools to improve the design of their global

supply chains. Amber Roads Trade Planner

solution helps companies make better

strategic sourcing decisions and plan more

optimal distribution networks by providing

full visibility into all associated costs and

regulations.

Trade Planner Benefits

Trade Planner allows users to import

product descriptions, classify products and

store classifications by country in a product

repository. The solution provides graphical

comparisons of one or multiple products and

the complete landed costs associated with

importing those goods to multiple countries.

This research toolmakes it possible to

construct, analyze and save what if

scenarios by altering key variables. Trade

Planner Benets

Retrieve purchasing, logistics and

distribution information simultaneously to

optimize landed costs

Accurately assess the risks of sourcing or

distribution decisions based on prevailing

regulatory controls

Reduce the time to analyze with reusabletest scenarios as market conditions

change

Download scenarios to Microsoft

Excel to perform more complex

calculations

Reduce cost of supply by making faster,

better-informed sourcing decisions

Lower customs charges by identifying

opportunities to source from locations

with preferential trade agreements

Trade Planner Features

With Trade Planner, users can quickly

and easily compare the costs of sourcing

and distributing a product for multiple

locations and identify the most strategical

advantageous scenario. Key features

include:

Amber Roads Trade Planning tool allows us to efficiently analyze multiple global

sourcing options to ensure that our clients are taking full advantage of the dutysavings available through the multiplicity of trade preference programs.

PrincipalMercor Consulting, LLC

Source: Amber R


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Building on Success:Moving from Cost-Focused toDemand-Driven

Stage 2 - 3:

One of the challenges of moving from Stage

2 to Stage 3 is ensuring that compliance

and GTM planning become ingrained in the

daily operations of the company; these tasks

cannot be limited to a few select individuals

or departments. Building compliance

into standard work processes, promoting

awareness and providing education will

increase efficiency while simultaneously

reducing risk.

According to the maturity model, integrated

planning and execution and globalcentralized functions are characteristics of

a Stage 3, demand-driven organization.

On-demand technology is crucial to realizing

those goals, since it provides visibility across

distributed locations and a single repository

for product- and transaction-based data.

While Trade Wizards and Trade Planner

provide excellent basic compliance support

for screening, document determination

and landed cost calculations, the addition

of a centralized product master database,

automated workflow, and the ability to

integrate with other enterprise systemsmakes Export On-Demand the natural choice

for organizations taking the next step.

EXPORT ON-DEMAND

Export On-Demand is an af fordable,

subscription-based offering perfectly suited

for organizations seeking to transition from

Stage 2 to Stage 3 maturity. Available on

a flexible, software as a service (SaaS)

architecture, Export On-Demand can be

quickly deployed, configured and integrated

with enterprise resource planning and

supply chain management solutions.

Export On-Demand Benefits

Establish central control over product

compliance information

Avoid potential nes and preserve export

privileges through enhanced compliance

and license management

Improve productivit y by automating

processes and reducing false positive

screening results

Extend and coordinate key processeswith other business groups, such as

procurement, finance and legal

Collect, monitor and analyze key

performance metrics to improve

operations

Highly congurable architecture

eliminates the cost associated

with lengthy implementations and

customizations

Export On-Demand Features

Export On-Demand is powered by the

Global Knowledge database of trade

content and international business rules

including landed cost, import/export

controls, restricted parties and trade

documentation. A workflow and notification

engine makes it possible to automate tasks

and route exceptions to the right person for

efficient handling.

Other key features include:

Global product master Comprehensive product master for global compliance data, with XML integration to product information in

other enterprise systems

Security Multi-organization and role-based security model allow varying permission levels

Quick data entry Streamlined data entry forms to quickly and accurately create product, trade party or shipment records

Flexible integration Integration with other back-end systems via spreadsheet, XML and CSV

Restricted party screening engine Powerful screening engines based on computational linguistics identify potential matches with an extremelylow false positive rate

Global embargo enforcement Ability to screen partners against countries that are embargoed or sanctioned by governments other than theUS by easily selecting the country to enforce

Global license determination Flexible rule engine to determine if a license is required for export from over 100 countries based on country oforigin and destination, Harmonized Schedule (HS ) and Export Control Numbers (ECN) ; includes US re-export

license determination

License management Ability to store licenses, apply them to transactions, and monitor license usage against pre-set values andquantities

Document determination Flexible rule engine that identies which documents are required for a shipment

Document generation and

distribution

Sophisticated document generation engine that generates a complete set of export documentation anddistributes them via email to required recipients

Audit trails Archive all screenings, compliance hold decisions and trade documents associated with a transaction

AESDirect File Electronic Export Information (EEI) regarding the shipment directly to the US Census Bureau


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Reaching the Top:Moving from Demand-Driven toValue-Driven

Stage 3 - 4:

Gartner believes that transforming to a

demand-driven, customer-focused company

can take years, and aligning the companys

GTM operations to this strategy can be a

daunting task. Although many organizations

start by focusing on projects to improve

logistics and compliance processes as well

as to implement enabling technology, the

greatest gains are achieved by addressing

the organizational and cultural elements.

Without cultural change, transformation cant

happen, and the best a company can hope

for is Stage 3 maturity. Visionary leadership,constant persuasion and metrics alignment

are essential to sustaining a continued

effort and, ultimately, for achieving success.

We at Amber Road can help expedite your

transition to Stage 4 of the maturity model

with a variety of solutions:

Amber Roads Trade Import and Trade

Export solutions are designed for those

organizations that require the highest levels

of automation, compliance and integration.

Further, our International Transportation

Management solution managesinternational contracts and streamlines

complex freight calculations to optimize

carrier booking and automate the freight

audit process to identify carrier rating errors.

TRADE IMPORT

Amber Roads Trade Import is an enterprise-

class solution that centralizes the import

management functions to efficiently manage

product classification, trading partner

management and transactional flows that

span origin, pre-entry and entry processes.

Audit trails and complete managementreporting provide organizations with

a compliant process that adheres to

government regulations and reduces risks

and costs associated with global trade.

Trade Import is highly scalable, flexible

and designed to meet the business needs

of large, sophisticated importers. Its web-

based environment allows all trading

partners to collaborate within a singleplatform, using the same information and

processes.

Trade Import Benefits

Collect, organize and report on required

data elements by extending import

business processes to suppliers,

forwarders and brokers

Lower ling fees by reducing reliance on

third-parties

Manage a comprehensive global trade

database with product classifications,

admissibility criteria, assists, import

regulations and customs valuations

Identify discrepancies and resolve issues

before they become costly Customs

exams

Shift specialized resources from

mundane, operational tasks to more

strategic import compliance initiatives

Generate and track key performance

indicators, such as broker service levels or

clearance times

TRADE EXPORT

Amber Roads Trade Export solution

automates the end-to-end export

compliance process including restricted

party screening (RPS) , export license

determination and tracking, shipping

document generation and government

reporting. Audit trails and complete

management reporting provide

organizations with compliant processes

that adhere to government regulations

and reduce risks and costs associated with

global trade. Trade Export is used by many of

the worlds largest companies to ensure they

can support their organizations globalization

strategy.

Trade Export Benefits

Proactively manage risk by screening f

restricted parties and correctly classify

products

Implement uniform procedures and

internal controls to establish checks an

balances, better manage resources an

provide the foundation for reasonable

care

Provide rapid response to inquiries

or audits with a central repository ofdocumentation for all export transactio

Shift specialized resources from

operational tasks to more strategic exp

compliance initiatives

INTERNATIONAL TRANSPORTATIONMANAGEMENT

Amber Roads International Transportation

Management (ITM) solution for importers

and exporters is a powerful, on-demand

solution that effectively manages

international transportation contracts.Designed as a exible, modular solution,

the system streamlines complex freight

calculations to avoid rating misquotes and

carrier overcharges.

ITM Benefits

Enhance visibility and control for

airfreight rate and service information,

including contract rates, tariff rates, rate

agreements, and spot rates via a secu

centralized repository

Optimize and inform transportation

decisions through comparison of

alternative rates and services across a

providers under contract prior to booki

Automate booking processes and

eliminate error-prone manual rekeying

data


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Automate audit processes to helpresolve billing discrepancies with

carriers, resulting in a significant

reduction in overcharges

Coordinate rate updates with carriers via

a collaborative portal

Enhance compliance with Sarbanes-

Oxley by implementing standard

business processes to manage

transportation costs and by

demonstrating consistency in dealing

with vendors

Optimize the selection of carriers by

comparing rates and services side-by-

side

See detailed views of selected rates for

complete calculations that include all

applicable accessorials that affect total

shipment cost

Any organization that wants to ensure it

covers the essential criteria for Stage 4

maturity should consider the followingsolutions from Amber Road:

SUPPLY CHAIN VISIBILITY

Amber Roads global multi-mode Supply

Chain Visibility (SCV) solution connects

importers and exporters with their overseas

suppliers, logistics providers, brokers and

carriers. This connectivity enables parties

to communicate critical purchase order,

shipment and inventory information and

support collaborative logistics processes.

Supply Chain Visibility allows organizations

to competitively bid orders, communicateefficiently and make accurate decisions

related to diverting inventory or resolving

bottlenecks.

The collaborative features of SCV make it

possible for an organization to transition

to and grow within Stage 4. By providing

a pre-built network of supply chain and

logistics partners, Amber Road allows

organizations to form quick connections that

speed the flow of commerce through shared

information.

Supply Chain Visibility Benefits

Identify operational bottlenecks and

reduce cycle times

Eliminate excess inventory

Reduce supply variability and safety stock

Minimize expedited shipments

Improve customer service

Reduce stock-outs and mark-downs

Supply Chain Visibility Features

Amber Roads Supply Chain Visibility

solution has a proven track record with

users in multiple countries and across

many industries. Available on-demand, this

functionally rich and highly scalable solution

addresses all aspects of global supply chain

management. Key features include (see

table on next page):

Essentials for Stage 4 Criteria Amber Road Solution

Web-based, real-time collaborative platform

used by all parties in the value chain

Supply Chain Visibility

Global, centralized oversight, continuous

improvement culture, and integrated analytics

Performance Management

Collaboration to develop supply strategy Trade Agreement Management

With the implementation of Amber Roads solution, weve simplified our shipment process,

automating documentation and trade party screening, and now have the ability to

consistently control the regulatory and financial implications of our international shipments.

Currently 90% of all of Fairchilds shipments are pre-cleared.

Senior Manager, Global Logistics Fairchild Semiconductor

Last year alone we were able to save $220,000 in overcharges, a significant cost savings that

could not have been achieved with our third party vendor. We are extremely impressed with

Amber Roads depth of expertise and commitment to our business.

VP Corporate LogisticsPerry Ellis


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Supply chain network The most extensive global, multi-mode (air, motor, rail, and ocean) connectivity in the industry

Enables suppliers, customers, carriers and logistics providers to uniformly share supply chain information critical to thetimely delivery of goods

Reduces the start-up costs of connecting trading partners by repurposing existing standard integrations

Order, shipment andinventory visibility

Users can precisely monitor the inbound and outbound movement of goods at the shipment, order and/or SKU level, usingover 350 reference points

Suppliers, manufacturers, retailers and transportation companies can improve customer service and minimize expeditingcosts by managing inventory in-transit

Data quality

management Best-in-class information accuracy for all messages exchanged between trading partners

Advanced database technologies and proven, continuous data improvement methodologies

Validation of messages for completeness, data accuracy and timeliness ensures high quality decisions

Alerts and event

management Proactively alert your supply chain partners and key stakeholders of key events and at-risk milestones

Manage critical supply chain issues and expedite resolution through automated notications

Fine tune alerts according to specic events, data elements and tolerances based on planned milestones

Dene who receives alerts, frequency and content of the notication

Assign alerts for resolution and report against them to identify root cause and eliminate recurrences

This project is a groundbreaking initiative and will place Glazers at the forefront of supply

chain best practices for our industry. Amber Road has been an invaluable partner in

supporting our vision for a true collaborative trading partner network, and we look forward working with them as we seek to leverage this solution to forge deeper links with our vendo

and carrier community.Vice President Corporate LogisticsGlazers Family of Companies


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PERFORMANCE MANAGEMENT

Stage 3 and Stage 4 maturity organizations

must effectively use business intelligence to

drive decisions and improve performance.

Pre-built and specialized templates and

reports enable organizations to quickly

gather and analyze the needed data without

lengthy custom report development.

Amber Roads Performance Management

module is a business intelligence platform

for developing strategic reports, KPI metrics

and scorecards that can be presented

in personal and corporate dashboards.

It integrates with our GTM solutions to

access the wealth of operational data that

is available within supply chain and trade

processes.

Users across various functions can usePerformance Management to run reports

and manage key metrics. Each department

can access their performance monitoring

reports to manage service providers such

as suppliers, forwarders and brokers, as

well as assess and manage critical process

cycle times. The platform facilitates sharing

operational data and metrics across

compliance, logistics and procurement

domains.

Performance Management Benefits

Access one aggregated source of

cleansed data with all key dimensions

Standard reports Over 80 standard reports are available to manage key metrics such as cycle time, trading partnerperformance, landed cost and data quality.

Custom and ad hoc

reports

Tactical custom reports can be dened based on any type of data element from the system with ametadata layer that relates information based on defined relationships among orders, shipments andequipment

Advanced conditional logic enables users to quickly develop queries which pinpoint key data among themillions of data points within the supply chain

A report portal is used to schedule reports, alert users when new reports are available and distributedeliverable documents

Dashboards Collect, organize, and present information in a manner that is most efcient for users

Personalize dashboards for the most effective display of data

Scorecards and analytics A business intelligence platform allows for development of strategic reports, analyt ics, KPI metrics,scorecards and personal and corporate dashboards

Audit Trail Use scorecards to measure carrier performance, compare transit times, analyze pricing trends and trackthe history of all transaction costs

Shift from tactical decision making tocontinuous improvement programs

Proactively manage business partners

service level agreements across the

extended supply chain

Performance Management Features

By connecting frontline data with

sophisticated reporting tools, Performance

Management gives organizations the

insight needed to make better-informed

strategic decisions to improve supply chainperformance. Key features include:

TRADE AGREEMENT MANAGEMENT

There are many different considerations

and inputs that factor into a supply strategy.

An important one is whether the country

of import and the country of export have

preferential trade status with each other

that could dramatically affect the cost of

goods.

Trade agreement rules of origin can be

complex and periodically change, making it

difficult to manage the eligibility of products

for one, let alone multiple trade agreements.

Amber Roads Trade Agreements solution

automates the management, utilization and

qualification processes necessary for global

businesses to participate in preferential

trade programs. The solution interfaces with

an organizations vendor base to collect

key compliance information and generate

declaration certicates. By integrating with

enterprise resource planning (ERP) systems,


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the solution processes each component ofthe bill of materials (BOM) with the rules of

origin and available certifications to qualify

the part for a given trade program.

In a matter of seconds, the Trade

Agreements solution automatically

calculates the regional value content (RVC)

percentage for every BOM, and applies

the appropriate tariff shift or RVC rule to

determine whether a product is eligible for

preferential treatment. The result is a much

lower cost of goods sold for products that

qualify for preferential duty treatment.

Trade Agreement Management Benefits

Automate trade agreement determination

and qualification through a centralized

solicitation process

Ensure minimal duties across preferential

territories

Automate generation and distribut ion of

critical documents

Make better sourcing decisions based on

whether goods have preferential status

Trade Agreement Management Feature

Trade Agreements utilizes purchasing

information to automatically solicit vendor

for required trade preference program

information. The automated process come

full circle with a vendor solicitation portal t

allows vendors to access the system, and

directly enter trade program information,

where it can be managed by compliance

professionals.

Amber Road maintains and updates rules

origin, duties and taxes for major preferentrade programs such as EU-GSP, EEA, NAF

and EU-Mexico, with additional programs

added regularly. Key features include:

Fully automated vendor

solicitation portal

Organize your programs with powerful campaign management tools and reduce the manual effort ofsoliciting vendors

Mass parts qualification Qualify parts utilizing standard bill of material data to analyze multiple trade preference programssimultaneously

Multiple qualification

models

Perform full qualication analysis for rules of origin, tariff shif t, RVC, cumulation, and column 3 and 4analysis of EU rules

Program portfolio

management

Manage trade preference programs to identify and realize lower product costs and achieve the next levelof landed cost savings

Vendor data management Eliminate repeated data entry tasks and reduce errors by providing vendors with portal access to enterdata

Document visibility and

archiving

Electronically transmit documents to vendors, archive all declarations and movement certicatesdistributed to customers, and allow vendors to create and archive certificates within the system

Multiple trade programs Manage multiple trade programs, such as EU-GSP, EEA, EU-Mexico, NAFTA. US-Australia, US-Chile, US-Central America (CAFTA), US-Peru, European Free Trade Association, ASEAN, US-Singapore

By implementing the Amber Road solution, we are able to take advantageof preferential duties, saving $1.2M in duties and taxes, automate the NAFTA

qualification process, and generate accurate trade documentation to maintain

export compliance in an effective and timely manner.

Project Manager, Global LogisticsHaworth, Inc.


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Turning Recommendations intoReality with Amber Roads GlobalTrade Management Solutions

Stage 4:

Gartner makes several recommendations

for achieving value chain transformation

throughout the stages of GTM maturity:

Identify your companys stage of GTM

maturity.

Establish a global, centralized

organization for GTM oversight. Assign

overall GTM responsibility to one

executive (for example, the CXO or senior

VP of supply chain).

Standardize global processes andtechnology with regional variations, as

compliance and cultural differences

dictate.

Dene common metrics for which all

groups and functions are accountable,

with the end- customer outcome in mind.

Use Web-based, cloud-based or

software-as-a-service (SaaS) technology

platforms to link all parties in the supply

chain to real-time logistics, compliance

and financial information.

Once an organization has assessedits level of maturity and consolidated

responsibility, the journey to GTM maturity

is well underway. The next steps in the

journey towards realizing Stage 4 maturity

involve adopting technologies, centralizing

information and business processes,

and measuring results. Along with a GTM

strategy that acknowledges the unique

challenges of moving goods across

international borders, our solutions can help

provide the bridge to Stage 4.

Source: Amber Road


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About Amber Road

Amber Road is the worlds leading provider of on-demand GlobalTrade Management (GTM) solutions. By helping organizations to

comply with country-specific trade regulations, as well as plan,

execute and track global shipments, Amber Road enables goods to

flow unimpeded across international borders in the most efficient,

compliant and profitable way.

Our solutions automate import and export processes, provide

order and shipment-level visibility, calculate duties, taxes and

fees, administer preferential trade programs, ensure regulatory

compliance and simplify the financing, sourcing and transporting of

goods across international borders.

Amber Road is powered by Global Knowledge, the industrysmost comprehensive database of trade content and international

business rules. Global Knowledge has been amassed by our team

of in-house trade experts over the past twenty years. This same

team monitors and updates global trade regulations on a daily basis

to ensure that our solutions are current and that our customers are

compliant.

www.amberroad.com/

Email: [email protected]
http://www.amberroad.com/mailto:Solutions%40AmberRoad.com?subject=mailto:Solutions%40AmberRoad.com?subject=http://www.amberroad.com/

Documents

Gartner Newsletter Amber Road Issue 1 120518.pdf