SCDigest Editorial Staff
The supply chain world, in general, is replete with various process models, such as those developed by the Supply Chain Council (SCOR Model), CSCMP, various consultants, and many others.
But when it comes to truly global supply chain processes, the stock of existing process models quickly becomes a lot thinner. That, in part, led a couple of well-respected Stanford University professors (Warren Hausman and Hau Lee) to take a look at an end-to-end process model for global trade management, as well as the potential benefits from automating those process.
“The two or three process models that were available did not really have enough detail to enable them to be used for process improvements,” Dr. Hausman said on a recent videocast from Supply Chain Digest and The Supply Chain Television Channel,” that provided a summary of the research. (To view an on-demand version of that broadcast, go here: Global Trade Management Videocast with Stanford.)
To build the model, Hausman and Lee had to put some scope around where to begin and end. They decided to define the scope as follows:
1. Pre-Export: steps that initiate the global trade process, including import screening, negotiation of price, contract and payment terms, creation of purchase/sales orders, and export screening;
2. Transport Arrangement & Export Declaration: steps preparing for exportation, including arrangement of transportation carriers, obtaining approval from inspection agencies, export declaration, and preparation and transmission of security filings to US Customs and Border Protection (CBP);
3. Transport & Import Declaration: steps that include international ocean or air transport of the goods, generation and submission of import documents, and import customs clearance; and
(Global Supply Chain and Logistics Article - Continued Below)