Vice President of Product Management and Solutions Consulting at Amber Road Inc., Ty Bordner delivers some truisms about the essential role played by trade compliance in supply chain management efficiency and illustrates how it can both positively and negatively affect the bottom line of a company’s trading activities in terms of time and cost.
Compliance is, Bordner says, “needed to deliver goods in a timely manner; maximize supply chain efficiencies; lower costs and increase revenues; decrease cycle times and lower inventory levels.”
In addition to potentially expensive fines and penalties, other problems that could be induced by compliance, or rather more as the consequence of non-compliance, include the needless postponement of shipments not meeting customs pre-shipping data submission requirements and the myriad of costly delays associated with the physical examination of goods if accurate shipment information is not available at the time it’s required to be on hand.
Bordner’s solution, quite unsurprisingly, is an approach to achieving compliance that largely focuses on greater automation of the documentation process to ensure that it is both “consistent and informative” in every respect, from minimizing re-keying errors at point of input to generating more complete and auditable records. In addition to many internal benefits such as ability to leverage a single view of product information throughout the supply chain, Bordner contends that implementation of an automated system will effectively reduce the potential for inspections and the concomitant risk of attracting penalties for non-compliance.
Click here to read the complete article in Supply & Demand Chain Executive magazine.