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system
A company that deploys a global trade management software system can
reduce the costs, risks and delays associated with manual compliance
and tracking efforts.
Few supply chain executives expect to see strategic benefits from compliance.
To them, compliance is purely a cost of doing business. These same supply
chain executives tend to view global trade management software systems as a
technology that enables their supply chains by automating export and import
compliance processes.
visibility into landed costs for a product and improves the organization's ability
to make business decisions.
Advantage #4 -- reduction of inbound delays: An import shipment that lacks
accurate paperwork can be significantly delayed at customs. If an organization
experiences such delays frequently, it is forced to either carry excess inventory
or incur more stock-outs. Delays in inbound shipments are particularly
expensive for companies in industries where product life cycles are extremely
short, such as high tech or fashion.
Advantage #5 -- streamlining financial trade: Letters of credit are critical to
doing business with an international customer. However, recent studies have
shown that up to 70% of all Letter of Credit documents submitted to the bank
for payment are rejected upon first presentation due to incorrectly issued
documentation. This leads to payment delays and additional fees.
With working capital so hard to raise in today's tight credit environment, any
delay in collecting cash from international shipments due to incorrect or
incomplete documentation against a letter of credit can be expensive. A global
trade management software system streamlines the process for collecting and
filing such documentation and ensures that the set of papers is correct and
complete every time.
About the author: Jessie Chimni is vice president of North America
Consulting Services for Bristlecone, a leading supply chain consulting firm.
Bristlecone brings expertise across the entire spectrum of supply chain,
including demand and supply planning, network collaboration, sourcing,
eProcurement, global trade management, spend analytics and supply chain
performance management.
This was first published in February 2009