Case Study

Premium American Brand Saves Millions In NAFTA Duties

How MSPs Automate Business

The company is an American icon creating and selling home maintenance products across North America. Defined by the company’s innovation, technology, and leadership, the brand has also set new standards of excellence in every aspect of its production and supply chain.

The Challenge

Canada is the company’s primary export market so leveraging the NAFTA trade agreement was very important. The company saw a need to reduce time at the border, lower duties, and create efficiency by replacing an outdated, manual approach.

The Solution

Amber Road’s Trade Agreements solution enabled the company to centralize and automate their North American Free Trade Agreement (NAFTA) processes. The solution provided an efficient means to collaborate with their suppliers and automate the NAFTA qualification process. Using existing data integrated from SAP, they could illuminate issues, identify means to resolve them, and align the teams on the same page, all within the Amber Road platform.

The company was also able to realize the value of working with the team at Amber Road to ensure a smooth implementation and integration with their existing software and business practices.

“The team was a serious value-add during the learning process, then our teams could take over. We would rely on the Amber Road specialists when needed, but we have now come to the point where we can use the platform to roll out our products properly and reduce the cost of transactions,” said the Senior Manager, Customs and Import/Export Compliance. “We are at the point now of actually automating the processes and feeding data between all of the systems – SAP ERP, etc.”

The Benefits

The company’s strategy is to make doing business with them simple, so the customer gets what they want at a minimum cost, with the expected high quality of the brand. Amber Road’s solution has streamlined border crossings, improved margins, reduced compliance risk, and instantiated a platform for supply chain agility.

  • Workforce Efficiency: centralizing all of the data in a single solution, provided for efficiency in product classification, document generation, NAFTA qualification, and supplier solicitation enabling an increase in workforce efficiency.

  • Customer Satisfaction: digital collaboration with supply chain partners like customs brokers and truck carriers, reduced the transit time for border crossings; enabling a reduction of costs and an increase in customer satisfaction.

  • Cost Savings: automating the NAFTA qualification process in a real-time manner enabled the team to make accurate trade preference claims at the time of border crossing. Previously, the company would pay duties and wait more than one year to recoup those duties through the NAFTA reconciliation process. Duty outlays were more than $3M per year and are now less than $300K, creating significantly better cash flow and direct hard dollar savings.

  • Streamlined Process: through intelligent data analytics, the solution enables a streamlined NAFTA certificate supplier solicitation process by automatically determining which product components are important in the qualification process. This resulted in a large reduction of the number of supplier solicitations and product classifications required, yielding significant workforce efficiency improvements.

  • Agility: with a solution platform in place to support the high volume NAFTA region, the company can now easily support other trade preference agreements as needed, creating a more agile supply chain.