Gartner Newsletter Amber Road Issue 1 120518.pdf
-
Upload
joseantoniovalles -
Category
Documents
-
view
218 -
download
0
Transcript of Gartner Newsletter Amber Road Issue 1 120518.pdf
-
8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf
1/16
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.
2
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
-
8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf
2/16
2
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 -
8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf
3/16
3
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.
-
8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf
4/16
4
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
-
8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf
5/16
5
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
-
8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf
6/16
-
8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf
7/16
7
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.
-
8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf
8/16
8
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
-
8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf
9/16
9
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
-
8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf
10/16
10
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
-
8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf
11/16
11
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
-
8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf
12/16
12
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
-
8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf
13/16
13
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,
-
8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf
14/16
14
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.
-
8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf
15/16
15
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
-
8/10/2019 Gartner Newsletter Amber Road Issue 1 120518.pdf
16/16
16
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/