How Optilogic’s Lumina Tariff Optimizer Helped Avoid $8M in Tariff-Driven Supply Chain Costs

A global oilfield manufacturer teamed up with Anvaya Consulting and Optilogic’s Lumina Tariff Optimizer to model, optimize, and act fast.

Explore Lumina Tariff Optimizer: https://optilogic.com/tariff-optimizer/

Why Tariffs Are Back in the Spotlight

With renewed trade tensions and ongoing regulatory shifts, manufacturers are under pressure to rethink their global supply chains. Questions like:

• Should we pre-buy inventory ahead of policy changes?
• Can we still afford to import from China?
• How do tariff shifts impact total landed cost?

…are becoming daily concerns.

“You need a design space to test these shifts. Planning systems don’t give you that sandbox.”  — Jim Wilson, sr. director product management, Optilogic

What Is the Lumina Tariff Optimizer?

Lumina is a specialized add-on within the Optilogic Cosmic Frog platform that enables companies to model and mitigate tariff risk across global supply chains.

Key Capabilities:

• Build tariff tables by lane, region, and origin country
• Run scenarios in Excel—no heavy tech lift required
• Connects to Avalara for real-time HS code and duty rate data
• Test different tariff levels (e.g., 5%, 25%, 50%) instantly

How the Lumina Tariff Optimizer Helped a Manufacturer Mitigate Tariff Costs

An oilfield equipment manufacturer was caught off guard by a sudden international tariff increase. They were bleeding margin—and their network wasn’t designed to adapt.

Key challenges:

• No digital twin of their global aftermarket supply chain
• Zero visibility into tariff-driven landed cost
• Freight routing inefficiently through the U.S., even when serving Asia and the Middle East

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What Did the Consultant Do?

Satyaveer Bhati, founder of Anvaya Consulting, leveraged the Lumina Tariff Optimizer to diagnose and solve the issue—fast.

The 6-step approach:

• Built a digital twin of the aftermarket supply chain
• Modeled duty exposure lane-by-lane
• Integrated HS codes and current tariff data
• Ran multiple what-if sourcing and routing scenarios
• Created an implementation-ready roadmap
• Supported execution for immediate impact

“We developed a digital twin, ran hundreds of tariff-driven scenarios, and delivered $1M in savings in the first month—with more to come.” — Satyaveer Bhati, Anvaya Consulting

What Changed?

By using Lumina, the company uncovered and implemented changes that helped avoid $8 million in potential costs.

The breakdown:

• $3M in freight savings ‍
• $2M in handling cost reductions ‍
• $3M in tariff exposure avoided

These were real, executable savings—not just theoretical.

Why Wasn’t This Possible Before?

Traditional planning systems weren’t built for fast, large-scale scenario testing—especially when factoring in global trade complexities.

Barriers that Lumina overcame:

• Inability to simulate major network redesigns
• No integration with tariff databases
• Scenario testing was too slow and manual

“This wasn’t just a simulation—it was a playbook the client could execute immediately.” — Satyaveer Bhati, Anvaya Consulting

Sample Use Case: Fixing Broken Flows

Old model:
China → U.S. → Middle East → Singapore

New model:
China → Singapore

Result:
Shorter lead times, fewer border crossings, and zero unnecessary tariffs.

Q&A Snapshot

Q: Can Lumina model both fixed and variable duties?
A: Yes. Tariffs can be calculated based on product value, freight cost, or weight.

Q: Does it support bonded warehouses or drawback programs?
A: Absolutely. Lumina can compare bonded vs. non-bonded scenarios, including deferment and duty refund programs.

Q: What if we don’t have accurate HS codes?
A: Lumina connects with Avalara to classify products automatically using your existing ERP data.

Who Should Care?

• Supply chain and network design leaders
• Finance and procurement professionals
• Global trade compliance teams
• Sales and pricing managers dealing with margin pressure

Key Takeaway

“Once you model the right flows, duty savings follow. But the bigger win is creating a supply chain that’s responsive to volatility—no matter where it comes from.”  — Satyaveer Bhati, Anvaya Consulting

Want to Learn More?

Explore Lumina Tariff Optimizer and other scenario planning tools: https://optilogic.com/tariff-optimizer/