Global trade is more dynamic than ever. To some, this is viewed as a challenge; to others, it highlights the opportunity available for those who can adapt.
Over the past year, I have seen an increased demand from our customers for regulatory information and supply chain planning/visibility capabilities. The capabilities needed go well beyond the basics of “How much will it cost to get the product from country A to country B?” Today, companies need to evaluate country threat indexes, they need to determine the expected transportation time based on historical data, they need to identify total landed cost while considering the use of various free trade agreements and duty deferral programs, which requires them to consider the bills of material and sourcing options for their products.
Companies need access to information regarding import and export volumes from different countries in order to research sourcing options. They need visibility of their various locations in different countries that might use a specific component and determine the full impact of changing a supplier so an unintended problem is not caused for one location while trying to qualify for a trade agreement in another.
Once an organization determines the best options for product sourcing, trade agreement usage, and optimal routes, they need to implement a program to ensure they are well informed about their suppliers and customers as more and more countries are implementing programs requiring global firms to know their trading partners.
In summary, supply chain management is more dynamic than ever and requires the use of integrated tools to keep track of the various variables to consider. The organizations without the ability to adapt will struggle, however, the organizations that can identify the most-efficient, cost-effective, and responsible way to engineer their supply chains will have a competitive advantage.