Ongoing developments in global trade are affecting the way companies do business, and it’s going to keep changing. Are you ready? Does your business have what it needs to run your import and export processes despite changes in trade agreements, duty and tariff costs calculations and customs requirements?
Maybe you’re thinking, it’s going to take a while for all these changes to affect my business. Think again – because before you know it, you could be submitting the wrong documents and paying massive penalties to release your shipment from port authorities. With the Brexit date set for January 31, 2020, the UK will need to negotiate a new trade deal with the EU. The United States, Mexico and Canada have also reached an agreement to modernize NAFTA and are in the process of ratifying the USMCA. Then we have the United States’ long-awaited new deal with China, with Phase One scheduled to take effect on February 14, 2020. Every day there’s something new, whether it’s on intellectual property rights, on food and agriculture, or shipping and landing costs, and now even digital trade.
How should companies respond to these market pressures, and do you have the internal capabilities prepared to tackle these challenges? Oracle has partnered with Aberdeen Research through this on-demand webinar “Global Trade Management – Trends, Challenges and Best Practices” to discuss what Best-in-Class organizations are doing in response to these continuous changes in trade policies. Read this companion knowledge brief Global Trade Management: Best Practices and Critical Capabilities to Outpace Change to learn about the 5 key areas to consider when evaluating your global trade management system:
1. New technology adoption
Best-in-Class companies find that a move towards a paperless, more automated global trade (GTM) platform has produced higher productivity as it allowed them better visibility, the ability to collaborate and streamline processes.
2. Fundamental trade management capabilities
Companies with a streamlined global trade management solution are more likely to efficiently classify SKUs and to certify internal trade compliance, do automated comparison of sourcing against import/export costs, and access information that comply with the latest trade regulations
3. International transportation visibility
The ability to track real-time in-transit status and visibility into the trade documents flow are both must-know capabilities that Best-in-Class companies make sure they prepare for. Supply chain events are crucial and having a solution in place to monitor and provide exception alerts makes it easier to track and trace international shipments.
4. Duty, tariff and costing capabilities
Duty, tariff and tax calculations go into the cost of product and cost of compliance calculations. Duty drawback management helps minimize the impact of these duties. Having visibility into accurate landed and delivered costs help determine true profit margins and what level of discounts can be offered.
5. Organizational readiness
Navigating this complex trade environment is crucial for any organization, and being able to react to, and implement short-term and long-term solutions are important in ensuring these changes do not drastically affect profit margins. These may include, but are not limited to, working with alternative suppliers, engaging upstream global trade capabilities in product sourcing and design, and country of origin options, etc.
As shown by the Aberdeen research, technology adoption plays a crucial role in being able to quickly adapt to changing trade policies and keep up with any supply chain events and disruptions.
If you're interested in learning more about global trade trends and how you can leverage technology across your supply chain, join us in this upcoming webcast in partnership with National Customs Brokers & Forwarders Association of America (NCBFAA), on Tuesday, February 11, 1-2pm ET: “Leveraging Technology Across Your Supply Chain To Better Manage Trade Compliance”. Daniel Schoerner from Oracle, and Irina Vaysfeld and Rada Gaynullina from KPMG LLP will be discussing how to better manage trade compliance and streamline processes during this time of geo-political uncertainty.