What happens if you don’t have it?
Obeying the trade regulations is critical and a company needs to know what the trade regulations are before it can comply. Non-compliance can not only hold up goods at Customs, but can also potentially result in fines, jail time, loss of export privileges, seizure of goods, and bad publicity. Additionally, time to market with seasonal or perishable products is critical. Delays could cause spoilage or missed opportunities, particularly with seasonal items.
Cost is a second issue. Being in compliance reduces cycle times, lowers inventory levels and warehouse costs. Utilizing a duty management program such as a free trade agreement (FTA) or free trade zone (FTZ) is a direct cost savings leading to higher profit margins.
How can you use it?
Global trade content isn’t just the provenance of the export or import team. Logistics professionals, lawyers, security, purchasing, personnel, customer service, and other areas of the company can all make use of the information. For example, the logistics department can use global trade content to determine when and how to ship goods, and for how much. Purchasing can use the same information to determine from where to source their goods. Customer service can use the information to let customers know when their goods are due to arrive and security and legal can use the information to lower a company’s corporate risk. Because global trade content has so many uses, companies can justify its return on investment (ROI) to the C-level when budgeting for automation.
Global trade content should not only keep your company in compliance, but should also help the company run more efficiently and improve profit margins. Utilizing a global trade content platform – content accessible across systems and departments – enables a company to use this information in the most cost-effective and productive way possible.
What are some examples of companies that have effectively used global trade content?
Leggett & Platt, a diversified Fortune 500 manufacturer of engineered components and products, with 160 autonomously operating branches, used a global trade content platform integrated with its procurement, transportation management and warehouse management systems to realize a two to three percent product cost savings; centralize its import management functions; minimize data entry; and implement a unified and cohesive procurement process.
A second company, Haworth, a family owned, $1.4 billion global privately held company providing office furniture, adaptable workspaces and architectural interiors, was able to take advantage of NAFTA’s preferential duty rates, saving $1.2 million in duties and taxes; generate accurate trade documentation; and improve its supplier solicitation response rate by 80 percent, among other benefits. |