This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
One of the capabilities that provide significant benefit to corporations is improved visibility of their imports. In recent years many companies have made dramatic shifts in their supply chains without fully understanding the hidden costs and implications of shifts made in a rapid manner.
Although many times it is clear that a shift will be of benefit, there are additional opportunities that could be realized with better information. Perhaps the organization could leverage a trade agreement based on the shift. A change that is viewed as good could become great.
Along with measuring benefits, it is important to ensure that in the midst of the change, compliance was not compromised. As new brokers and service providers are introduced, one must ensure that they are rolled into the compliance program. This can’t be done without visibility enabled through integration.
Finally, it is important to understand associated costs. The way to do this is to ensure that all information is tied into a global trade management (GTM) platform. I have seen many cases where companies invest in GTM technology, yet have limited integration between their supply chain and their GTM platform. That is an inappropriate use of a valuable resource.
One of the causes for this data shortage is that many companies try to prioritize this integration internally with IT departments that have many other priorities and do not necessarily have the experience or focus on integrating with supply chain partners. This makes the process less efficient and difficult to prioritize ahead of other corporate needs.
There are consultancies and managed services firms focused on broker management and supply chain optimization. They specialize in facilitating this integration for importers and can do it in a rapid and cost-effective manner. With their assistance, importers can realize savings more efficiently and improve compliance.