Supply Chain Visibility Best Practices » Global Trade Management

Green Global Supply Chain Continues at Consumer’s Doorstep

SCVBestPractices — Mon, 26 Jul 2010 20:13:57 +0000

The following is a guest post, courtesy of Lauren at Trade Compliance Blog. Enjoy!

The Wall Street Journal has a great article about the green sustainable global supply chain - specifically within the apparel industry – describing a new tool for consumers to determine how green their products are.

“How Green Is My Sneaker” describes a new software tool, developed by 100 retailers and apparel manufacturers, can determine the “Eco-Index” of their products. The tool calculates the score from a series of questions answered by the company and its suppliers:

The Eco Index, which is basically a software tool any apparel maker can use, poses a series of questions to companies on their environmental and labor practices—some of which require answers from the companies’ suppliers. It then assigns a score representing a percentage of a perfect score.

The questions cover every step in the life of a product, from raw-material production to manufacturing, shipping, and even disposal. For instance, Levi’s gets points for having a recycling program that lets consumers drop off their old jeans at Goodwill, and Timberland earns points for using leather tanneries that have wastewater-purifying systems. Points are lost for using bulky packing material or transporting goods long distances. The Eco Index also includes estimates of how consumers will wash and eventually dispose of their clothes.

Image Courtesy Wall Street Journal, Levi's. Click to view interactive version.

The tool and scoring have been in development for over three years, but roll out to the public is not expected in the immediate future – even though retailers are announcing the Eco-Index at next month’s Outdoor Retailer trade show.

Levi’s vice president of social and environmental sustainability, Michael Kobori, says the tool will be available “as soon as we can get everybody to agree” on how to publish and communicate it.

Nike is one of the sportswear and apparel makers using the Eco Index to measure its products’ environmental impact. This sounds about as easy as herding cats, given the numerous brands involved. It’s one thing, many companies say, to use the data internally, but quite another to trumpet it to the world. They want to be sure everyone communicates the data in the same way. For instance, they don’t agree on whether the index should be communicated as a single number on a hang tag or in a more detailed manner that might involve directing customers to data on the Web.

Personally, I found the interactive graphic to be a great addition to the article. It shows how 1 pair of Levi’s jeans travels throughout the US and Caribbean – and even after purchase, how that one product continues to affect the environment.For example, the majority of CO2 emissions over the life-cycle of a pair of jeans come from the consumer’s washing machine & dryer. Switching to cold water and line-drying cuts the CO2 emissions to a fraction compared to washing with hot water washing and machine-drying.

Levi’s also looks to be making a lot of progress in sustainability based on their research into the greenness of their products:

As part of its participation in the Eco Index, Levi’s did a separate internal study of its own practices. As a result, Levi’s changed its transportation routes last year to make them more efficient and reduced carbon emissions by 700 metric tons. In addition to the Goodwill agreement, Levi’s also cut back on packaging, allowing only three pieces of labeling with the jeans—a back-pocket tag, a size sticker, and a price tag.

In my opinion, sustainability and trade compliance are linked policies. Companies must have a plan in place for both- or else pay fines, waste money, lose time, and give up competitiveness in the marketplace.

Read the complete article at WSJ: “How Green Is My Sneaker?”

Receive the Latest News Affecting Transportation and Logistics Costs – Sign up for the GTM Newsletter!

SCVBestPractices — Wed, 07 Jul 2010 16:43:05 +0000

Have you signed up for Management Dynamics’ FREE weekly GTM Newsletter yet?

As an industry professional, you know that factors influencing transportation costs are constantly changing. Accessorial charges may fluctuate based on the economic climate; carriers may change their service schedules; and as we all know, environmental conditions such as ash clouds or oil spills may affect carrier routes and stall your supply chain.

The GTM Newsletter summarizes changes such as these on a weekly basis, featuring the latest trade content and industry sources from over 120 countries, including:

Weekly News Headlines on Global Trade
Contract Accessorials
Carrier Service Schedules
Government Regulations including Tariffs, Duties, and Taxes
Landed Cost and HS descriptions
Denied Parties
Import / Export Controls

ICPA 1st Annual European Conference

SCVBestPractices — Thu, 13 May 2010 16:11:37 +0000

Management Dynamics will be exhibiting at ICPA’s First Annual European Conference, in Amsterdam June 13 – 15. If you have not registered yet, it’s not too late. (We’d love to see you there!)

Conference sessions will include:

Compliance Implications of Simplified EU Law
Confronted with an Audit: The Do’s and Don’ts
Customs Classification –The Latest Developments in EU Law
The Impact of the AEO Legislation: Lessons Learned from the Pilot Project & Implementations in Other Member States
Compliance with EU Sanctions
Export Control Fundamentals for Compliance Managers
Introduction to Customs Valuation and Transfer Pricing
VAT Implications of Transfer Pricing & Customs Adjustments
Centralized Clearing
Rules of Origin
IT Challenges in Effective Export Control Compliance
Conducting Effective Internal Audits: Best Practices
Tariff Engineering: Developments, Issues & Opportunities
Risk Determination for Export Compliance
EU Compliance Share Forum: Overview & Proceedings

For more information on the conference, or to register, please visit http://icpainc.org/conferences/eu/.

Management Dynamics and FTZ Corporation Announce Strategic Partnership

SCVBestPractices — Wed, 12 May 2010 16:27:34 +0000

Alliance will Integrate and Expand the Use of Foreign Trade Zones in Global Trade Management

Management Dynamics, a leading provider of Global Trade Management solutions, today announced a strategic partnership with FTZ Corporation, a leading provider of Foreign-Trade Zone consulting services and developer of the SmartZone Premier application. The partnership seeks to expand the use of foreign-trade zones integrated with core Global Trade Management (GTM) processes of import, export and trade agreement management.

Foreign-Trade Zones have been in use for nearly seventy six years with the passage of the Foreign-Trade Zones Act of 1934 to expedite and encourage foreign commerce. Foreign-Trade Zones are now a key component of U.S. trade policy and offer companies several opportunities to reduce costs with:

Exemption of duty payment upon re-export of goods
Relief from inverted tariffs where raw materials with high duty rates can be transformed to an end product with a low duty rate
Use of consolidated weekly entries to reduce merchandise processing fees (MPFs)
Deferral of duty on any inventory stored within an FTZ

For many companies these benefits can justify the investment in a Foreign-Trade Zone in the first year of operation.

“Foreign-trade zones are becoming an integral part of a company’s GTM strategy and their use is expanding given the strong value proposition and fast pay back,” said Craig Pool, President, FTZ Corporation. “Our customers are looking to integrate foreign-trade zones across their GTM processes and we look forward to working with Management Dynamics to deliver this solution.”

FTZ Corporation has extensive experience, having implemented over two hundred and fifty Foreign-Trade Zone projects. The company is also active in Washington D.C. with involvement in recent industry advancements including the passage of Weekly Entry legislation and opening up the benefits of Foreign-Trade Zones to new industries. FTZ Corporation offers a complete set of implementation services including the application to the FTZ Board and activation of the zone with Customs and Border Protection. Combined with the implementation of SmartZone Premier software, FTZ Corporation can cut the time to first benefit with a “turnkey” implementation.

“Implementing a foreign-trade zone program can generate millions in recurring savings and is a key initiative for companies as the global economy is rebuilding,” said Jim Preuninger, CEO, Management Dynamics. “FTZ Corporation has a tremendous track record of success in this industry and we look forward to working together to expand the GTM market.”

For more information on capitalizing on free trade agreements, watch our World Trade Webinar or download our Trade Agreement Best Practices Benchmark Report.

About FTZ Corporation
The Foreign-Trade Zone Corporation is the only nationally recognized consulting firm with a practice focused on Foreign Trade-Zone consulting. The firm provides a wide range of consulting work from Foreign-Trade Zones Board applications to activations with Customs and Border Protection, and administers nine foreign-trade zone projects. Its management of these projects is in keeping with the Foreign-Trade Zone Corporation’s philosophy that there is no substitute for hands-on-experience.

Free Webinar: Capitalizing on the Direct Import Opportunity

SCVBestPractices — Tue, 13 Apr 2010 19:29:00 +0000

Earlier this year Walmart announced projected cost savings of 5 – 15% by product category with an expanded direct import program. While retailers, consumer goods companies and most global manufacturers have been importing for years, there is renewed interest in understanding all of the elements of a direct import program and the opportunity areas that can drive new supply chain efficiencies and boost product profitability.

This webinar, presented by Management Dynamics and World Trade Magazine, will take a look at the foundation technologies for a direct import program, explore the implementation options by working with a global logistics provider, and discuss a number of successful case studies.

The webinar will be Tuesday, May 25 at 2pm EST. Please register today by following this link.

A Reminder – Look for us at ICPA

SCVBestPractices — Fri, 12 Mar 2010 20:11:51 +0000

Management Dynamics will be exhibiting at the ICPA Conference next week in Orlando. Please be sure to stop by booth number 23 and say hello to us. Also, Thursday morning we’ll be presenting along with Adrienne Braumiller of Braumiller Schulz LLP in the Compliance Software Workshop. Our time slot is 9:50 – 10:20am, so come check us out!

Check Out Management Dynamics’ YouTube Channel

SCVBestPractices — Wed, 24 Feb 2010 17:56:33 +0000

Did you know that we’re on YouTube? Please visit our YouTube Channel at http://www.youtube.com/user/ManagementDynamics.

We’ve uploaded some great videos on various aspects of Global Trade Management, including this interview on Strategic Opportunities that 10+2 Presents:

Look for Us at These Upcoming Conferences

SCVBestPractices — Wed, 24 Feb 2010 16:40:15 +0000

Management Dynamics will be attending several industry trade shows and conferences in upcoming weeks. If you plan on attending any of these as well, please be sure to say hello!

Supply Chain Security Virtual Conference
Online
Feb. 25, 11am – 7pm EST
Please visit our virtual booth and chat with us at this (free) online conference.

10th Annual Trans-Pacific Maritime Conference
Long Beach, CA
March 1 – 2, 2010

SEKO 2010 Global Sales Conference
Chicago, IL
March 7 – 11, 2010

ICPA Conference 2010
Orlando, FL
March 14 – 18, 2010
We’ll be exhibiting! Come visit us at booth #23. Or stop by the software compliance workshop (3/18 at 9am) to hear us speak about our latest solutions for managing trade compliance.

Extended Supply Chain 2010
London, UK
March 24 – 25, 2010
Stop by our booth to speak with our experts about how you can benefit from supply chain automation, or attend our workshop on trade compliance and regulations.

SCOPE East 2010
Orlando, FL
April 11 – 13, 2010

89th Annual AAEI Conference & Expo
New York City, NY
June 6 – 8, 2010
Stop by booth number 302 and learn more about the latest Global Trade Management solutions.

Logistics & Supply Chain Forum
Stone Mountain, GA
June 6 – June 8, 2010

European Supply Chain & Logistics Summit 2010
Prague, Czech Republic
June 7 – 9, 2010

1st Annual ICPA European Conference
Amsterdam, Netherlands
June 13 – 15, 2010

Trade Professionals Turn to GTM Technologies to Reduce Supply Chain Risk

SCVBestPractices — Tue, 23 Feb 2010 19:31:01 +0000

In a recent AMR Research study, 53% of 160 global trade professionals surveyed claimed that they would be increasing their investment on global trade management (GTM) software in 2010. Some of the main reasons cited in the study for the increase include: to improve coordination of GTM functions internally; to meet government mandates; to meet security requirements; to protect the brand; and to control various costs.

As companies become more global, increasing and expanding operations all over the world, it becomes very difficult to manually manage supply chain processes. Especially when employees are spread out across multiple locations. GTM technologies allow users to seamlessly communicate with trading partners, manage suppliers, optimize global transportation, ensure trade compliance, automate key aspects of trade finance, and develop timely resolutions of operational issues.

To be more specific, a supply chain visibility solution can provide shippers with near-real time visibility to the status of orders, shipments and in-transit inventory to optimize their network. Without a system in place, companies may be handcuffed with longer lead times, higher inventory levels, budget overruns, and continued supply-demand imbalances. Furthermore, with regulations such as the Importer Security Filing (aka 10+2), it is more important than ever to have more visibility and control over what happens at origin. (And speaking of ISF, check out how Bunzl Distribution integrated a supply chain visibility solution with a trade import solution to establish a transparent and compliant import supply chain.)

The bottom line is that we are moving into an era where manual supply chain processes are becoming inept for companies who import or export. To learn more about how different types of GTM technologies can benefit your organization, please download one of Management Dynamics’ GTM Success eKits.

Management Dynamics Releases End-Use Manager to Help Companies Reduce Trade Compliance Risks

SCVBestPractices — Thu, 21 Jan 2010 16:57:19 +0000

New On-Demand Solution Enables Cross-functional Teams to Create and Manage End-Use Statements for Customers, Vendors and Employees

EAST RUTHERFORD, NJ, January 20, 2010 — Management Dynamics, a leading provider of Global Trade Management solutions, today announced the release of End-Use Manager, an on-demand solution that generates end-use surveys for parties involved in any cross-border transaction. The new solution allows a trade compliance team to comprehensively survey and collect end-use statements from customers, suppliers and employees, establishing a standardized process for managing and ensuring compliance with international trade regulations.

“Companies that manufacture and export licensable goods must ensure that their customer and the intended end-use are approved and in compliance with export regulations. However, today this is largely a manual process that is difficult to administer, especially across a global enterprise,” said Adrienne Braumiller, Partner, Braumiller Schulz LLP. “Management Dynamics’ End-Use Manager provides companies with the tools necessary to ensure that their shipments are delivered to the approved trade party and destined for friendly end-use.”

End-Use Manager can be flexibly deployed as a Web-based portal across any global enterprise and configured to meet the specific requirements of different business units. Surveys can be developed by business unit, transaction type, origin country and destination country, and populated with a pre-configured list of questions. In addition, all parties to the transaction are screened against the major sanctioned party lists.

Management Dynamics’ End-Use Manager offers the following key capabilities for companies to simplify trade compliance around product use and related professional services:

Enterprise Deployment – Implement an end-use process by geography, business unit, or product family with a flexible multi-organization deployment model and manage users with role-based security.
Survey Configuration – Develop a comprehensive repository of questions and manage assignment rules to dynamically assemble a complete survey for end-use statements by customers, vendors and employees.
Restricted Party & Critical Country Screening – Automatically screen each party to the transaction against a comprehensive list of restricted parties and embargoed countries.
Generate & Distribute End Use Statements – Dynamically generate end-use statements based on all associated questions as well as the results of Critical Country and Restricted Party Screening in a PDF format for easy distribution via email.

Review Audit Trail – Audit each transaction with complete visibility to the user and all survey questions and answers.

“Today many companies rely on an inconsistent and, often inaccurate, manual process to administer end-use surveys to determine if the intended use of their shipped goods is in compliance with export controls,” said Nathan Pieri, SVP Marketing & Product Management, Management Dynamics, Inc. “Our new End-Use Manager product makes it possible to manage the process centrally and distribute via a simple web-based solution for employees that must interact with customers, suppliers and contractors.”