Case Study: Global Oilfield Equipment Manufacturer avoids $8M in tariff-driven supply chain costs with Optilogic Lumina Tariff Optimizer

Global Oilfield Equipment Manufacturer avoids $8M in tariff costs with Optilogic

The customer, a global oilfield equipment manufacturer, was caught off guard by a sudden international tariff increase, which was eroding its margins. The company lacked a digital twin of its supply chain and had no visibility into how tariffs impacted its total landed costs. To address this challenge, it worked with vendor Optilogic and its Lumina Tariff Optimizer product.

Optilogic's solution involved building a digital twin of the supply chain to model duty exposure and run hundreds of sourcing and routing scenarios. This process identified executable changes, such as rerouting freight to avoid unnecessary tariffs. As a result, the manufacturer avoided $8 million in potential costs, which included $3 million in freight savings and $2 million in tariff exposure avoided, with $1 million in savings realized in the first month.