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Tax & Duties Optimization

Duties change. Your margin shouldn’t.

Sophus prices tax and duty into every network decision, so when the next tariff hits, it lands as a scenario you’ve already run, not a hole in your margin.

Trusted by Growing Companies at Every Stage of Network Design Maturity

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The Problem

Why duties became a supply chain problem

The fastest-growing cost you don't control

Taxes and duties have become a major cost driver in global supply chains, especially in intricate tax regimes like Brazil and India. Add trade wars and geopolitical shifts, and the one certainty is that today’s tariff table won’t be tomorrow’s.

Owned by finance. Caused by supply chain.

Taxes and duties are often managed in isolation by finance teams, creating misalignment with supply chain decisions. That leads to suboptimal trade-offs between operational costs, like logistics and inventory, and tax or duty burdens that nobody actually optimized.

The Sophus Solution

Duty becomes just another number in the model.

Taxes and Duties inside the optimization, not beside it

Sophus incorporates taxes and duties as decision variables alongside traditional supply chain costs, like production and transportation. The platform accommodates complex tax regimes, so every sourcing, routing, and facility decision gets optimized against its full landed cost, end to end.

What-If: Dynamic Scenario Planning

Rapidly simulate what-if scenarios to assess the impact of tax and duty changes, like tariff hikes or regulatory shifts, and identify resilient supply chain strategies to hedge the risk before the change takes effect.

Before the next tariff hike

See the cost before it lands on your P&L

See the cost breakdown before you decide

Every scenario breaks down into the cost components that actually drive it, tax and duty included, instead of one unexplained total.

Stop guessing at duty cost

Turn every tariff into a modeled outcome.

Benefits

The value of an optimized tax and duty network.

Tax / duty burden

Optimize network design, sourcing, and routing to reduce exposure to high-tax jurisdictions or inefficient duty structures.

-10 to -20%

Margins

Balance tax and duty cost with operational expense to unlock hidden savings and improve profitability. 

Improved

Risk exposure

Anticipate and adapt to tax and duty volatility, staying compliant while keeping the network agile.

Proactive

10-20% back on the bottom line

That kind of margin starts with one model

Build Around This

Put Taxes and duty modeling to work

Sophus prices tax and duty into every network decision, so when the next tariff hits, it lands as a scenario you’ve already run, not a hole in your margin.

Sourcing Optimization

Choose suppliers on total landed cost, duty included, not just unit price.

Cost to Serve

See the true end to end cost of every lane and customer once duty is priced in.

Supply Chain Network Design

Design a network that accounts for duty exposure from the first draft.

Supply Chain Risk & Resilience

Stress-test the network against a tariff shock before it happens.

Freight Consolidation

Cut duty and freight cost together instead of optimizing them apart.

CapEx Planning

Factor future duty exposure into where you put new capacity.

Verified By Gartner Peer Insights

What Verified Users Say on Gartner

4.8 ratings on Gartner Peer Insight

Common Questions

FAQs

What is supply chain tax and duty optimization?

It is the practice of treating tax and duty cost as a decision variable in your network design, alongside production, transportation, and inventory cost, so sourcing, routing, and facility decisions account for duty exposure instead of ignoring it.

How do rising tariffs affect supply chain costs?

A tariff change can shift the total landed cost of a lane or a sourcing option overnight. Without a model that tracks duty exposure by jurisdiction, that shift usually gets discovered after it has already hit the P&L rather than before a decision is made.

How can I model the impact of a tariff change before it happens?

Run the change as a what-if scenario against your network model. Sophus simulates a tariff hike or regulatory shift across sourcing, routing, and facility options so you can see the cost impact and the best response before the change takes effect.

What is the difference between tax optimization and duty optimization?

Tax optimization typically deals with corporate and transfer pricing structures. Duty optimization deals with the tariffs and customs costs tied to moving physical goods across borders. Sophus can help to model either of them.

How much can supply chain network design reduce duty exposure?

Sophus customers typically see a 10 to 20 percent reduction in tax and duty burden by optimizing network design, sourcing, and routing to reduce exposure to high-tax jurisdictions or inefficient duty structures.
Get Started

Ready to put a number on your duty exposure?

Stop discovering tariff impact after it hits the P&L. Get a model that prices duty into every sourcing and network decision.