EAST RUTHERFORD, NJ, April 3, 2008 -- Management Dynamics, a leading provider of Global Trade Management solutions, today announced that arvato digital services, a global provider of integrated service packages in the IT/high-tech, games, video and audio sectors, has integrated Management Dynamics’ landed cost engines and trade content with its SAP application to calculate accurate duty rates and reduce carrier billing overcharges on its international shipments from EMEA locations.

When fulfilling products globally, companies need to manage all dimensions of landed cost including transportation, taxes and duties, insurance, and other logistics services and handling costs. Duties and tax is a major cost element of the total logistics budget which is difficult to accurately calculate given the number of countries, tariff schedules and preferential agreements that may figure into a final calculation. With thousands of transactions per day across multiple product lines and country pairs, auditing duty and tax payments requires an automated process powered by real-time trade content.

Arvato digital services selected Management Dynamics’ Landed Cost solution which includes a Web Service integrated with rich trade content spanning 122 countries over 500 preferential trade agreements. Landed cost calculations integrate via the Web Service directly with SAP and provide all relevant duties, value added tax (VAT), tariffs, excise duty and other governmental charges associated with the shipment of goods within the arvato network.

"We chose Management Dynamics because of their broad scope of content and the accurate landed cost calculations to automate the audit of duties and tax and enhance the financial control over our freight budgets," said Mike Mügge, Senior Manager, Freight Management Services for arvato digital services. "Our integration of Management Dynamics’ Landed Cost solution with SAP supports our EMEA region and allows us to audit hundreds of thousands of shipments per year and ensure that we are paying the correct amount of duty to our forwarders.”

“To succeed in global e-fulfillment, both enterprises and logistics providers should integrate real-time landed cost data with their financial systems to audit their forwarder’s invoice to ensure that the correct amount of duty is paid,” said Jim Preuninger, CEO of Management Dynamics. “arvato digital services has implemented an innovative process and has demonstrated significant gains in operational efficiency and reduction in duties paid.”

About arvato digital services
Every day the 8,000 specialists at arvato digital services provide a comprehensive range of storage media related services to business partners in the IT/hightech, games, video and audio sectors. The services supplied range from customer service to replication, fulfillment, distribution/supply chain management, financial services and electronic content distribution. They are all supported by innovative end-to-end IT systems. Arvato digital services is part of arvato AG. With more than 270 subsidiaries worldwide, arvato AG is one of the biggest internationally networked media and communication services providers. In fiscal 2007, the group of companies generated sales of € 4.917 bn. arvato’s worldwide subsidiaries employ more than 50,000 people.