From supplier
to warehouse

We follow each shipment's paperwork from order confirmation to receipt, work with a licensed customs broker to get it released, then allocate its actual cost to its items in your system — giving management a realistic cost price to base pricing decisions on.

A shipment chased by phone, or a shipment managed with a file

When shipments are chased by phone

  • You only know where a shipment is by asking.
  • A missing document discovered at the port.
  • Demurrage and late fees piling up quietly.
  • Items priced at the supplier's invoice price.
  • The shipment, the documents and the entry sit with three different parties.

When one partner manages them

  • Every shipment's status known and up to date.
  • Documents checked before the shipment arrives.
  • Release followed step by step, with an alert at any hold-up.
  • Actual cost allocated to every item in the system.
  • One partner for the shipment, the documents and the accounting entry.

Who pays for what?

The delivery term in your supplier contract decides who pays for each leg of the journey, and where the risk passes to you. Pick a term to see the difference.

  1. Loading at the supplier—
  2. Export clearance—
  3. International freight—
  4. Insurance—
  5. Unloading at the destination port—
  6. Duties and import clearance—
  7. Delivery to your warehouse—
SupplierYouRisk passes to you

Risk passes to you

Calculate your shipment's cost

Simplified from the Incoterms 2020 rules for illustration. The actual details are set by the sales contract and the contract of carriage.

A shipment's journey in six stops

Pick a stop to see what we follow up there.

1 / 6

Purchase order & supplier

Reviewing the purchase order and delivery terms (Incoterms), and confirming the supplier is ready before shipping.

What does a unit really cost once it arrives?

The supplier's price isn't the item's cost. Enter a shipment's figures to see the gap between the invoice price and the cost that should appear in your system.

At the supplier
In transit
At the port
To the warehouse
Unit price on the supplier invoice— SAR
Actual landed cost per unit— SAR

—The gap missing from your pricing if it isn't allocated

How the unit cost builds up (SAR per unit)

  • Goods—
  • Freight—
  • Insurance—
  • Customs—
  • Clearance—
  • Port charges—
  • Other—
  • Transport—
  • Unloading—
  • Actual cost—

Total shipment cost— SAR

Before you rely on the figure

  • The calculator is indicative only and its figures are for illustration; don't base a pricing decision or an accounting entry on it. The actual cost is calculated from the shipment's own documents.

  • The calculator spreads costs equally across units, which works for a single-item shipment. A multi-item shipment is allocated by value, weight or volume — which is what we apply in the service.

  • Customs duty here is calculated on the value including freight and insurance, and its rate depends on the item's tariff code. Import VAT is excluded because it is normally recoverable.

Tracking sensitive inventory

  • An item card for every product, with its balance and movements
  • Early alerts before items reach their expiry date
  • Monitoring storage conditions for temperature-sensitive goods
  • Transfer orders between warehouses and branches
  • Disposal records and returns to suppliers

What we don't do

  • We're not a customs broker — the declaration is filed by a licensed broker
  • We're not a freight forwarder or carrier — we coordinate with yours
  • We don't pay fees from our own account — they're paid from yours

What you receive, and when

Every shipment has a file that starts with the purchase order and ends with the item cost.

With every shipment

  • The shipment file with all its documents
  • Shipment status at every stop
  • Actual shipment cost report
  • Cost allocated to items in the system

Every month

  • Open shipments and their status
  • Demurrage and delay charges, if any, and why
  • Items approaching expiry

Every quarter

  • Freight cost compared across suppliers and routes
  • Additional costs as a share of goods value
  • Observations on the agreed delivery terms

Customs duties and freight charges are paid from the company's account; we follow them up and match them against the documents.

The first thirty days

We start with the shipments open right now, then build the method for the ones to come.

  1. 1

    Week one

    Listing open shipments, suppliers, freight forwarders and your current broker.

  2. 2

    Week two

    Reviewing delivery terms and the usual documents for each supplier.

  3. 3

    Week three

    Following live shipments, and opening a file and cost model for each one.

  4. 4

    Week four

    The first actual-cost report, and allocating it to items in the system.

Questions about shipments & clearance

Is Erroba a customs broker?

No. We work with a licensed customs broker who files the customs declaration; we handle the follow-up, the documents and the costing.

We already use a broker — do we need to change?

No need. We coordinate with them directly and get the documents in order before they reach them.

Which delivery term is best for us?

No term is always best; it depends on your shipment volumes and your ability to manage freight and insurance. We review your current terms with you and explain their effect on cost and risk.

Are FOB and CIF suitable for container shipping?

They were designed for sea freight. For containers, the International Chamber of Commerce generally recommends FCA and CIP, because the goods are handed to the carrier at the terminal before being loaded on the vessel.

How is the cost of a multi-item shipment allocated?

By value, weight or volume, depending on the nature of the goods. We agree the basis with you and keep it fixed, so pricing stays consistent from one shipment to the next.