For this research report, Aberdeen surveyed 136 global exporters and importers in August and September of this year. Their findings revealed that trade compliance teams are actively revamping and augmenting their Global Trade Management (GTM), specifically their Global Trade Compliance programs, to stay current with supply and demand fluctuations, growing global operations, increasing operational complexity and risk, and trade lane changes.
Here are a few key findings in the report:
Best-in-Class companies had 8.2%in average trade compliance cost to value ratio
Best-in-Class companies achieved 95.0%perfect order ratereceived on imports received from international suppliers
Best-in-Class companies experienced 96.0% for perfect order rate delivered on exports to international suppliers/customers
Best-in-Class companies improved their average trade compliance cost to value ratio by1.4% improvement, year over year
Best-in-Class companies increased their total land cost per unit handled versus prior year by0.6%, a 5.5 percentage point advantage over all others
The retail industry is challenged with fluctuating customer demand, ever-changing styles and seasonality and the need to boost top-line growth through store expansion. Margin pressure has led many retailers to source goods from low cost countries – initially through distributors or international procurement operations and increasingly through direct import strategies.
This new eBook can help get you started and soon realize the advantages of a direct import program including:
A centralized procurement function to ensure higher levels of import compliance
Improved coordination and reduced order cycles with overseas suppliers
Enhanced compliance with advanced security programs like Customs 10+2
Reduced inbound transportation costs
Lower product invoice by eliminating purchases through intermediaries/distributors
More flexibility to implement postponement and direct-to-store distribution strategies
Higher levels of automation to reduce brokerage costs upon entry
Download this eBook and get started on building a Direct Import Program today to reduce costs and take control over your supply chain.
Upcoming Webcast, Sponsored by Management Dynamics: Results of the 19th Annual Study of Logistics and Transportation Trends
Wednesday, September 29, 2010 | 2:00 p.m EST – Register Today!
According to the results of the 19th Annual Study of Logistics and Transportation Trends (Masters of Logistics), the current uncertain economic environment is also reflected in transportation and logistics practices across companies of all sizes. In fact, the study shows that a majority of shippers, both large and small, have yet to significantly alter their logistics management operations from our 2009 findings.
In this Exclusive Webcast, Mary Collins Holcomb, Ph.D., of the University of Tennessee, and Karl B. Manrodt, Ph.D, of Georgia Southern University reveal the findings of Logistics Management’s annual study of logistics and transportation trends, also known as The Masters of Logistics.
Key takeaways from this year’s webcast will include:
The percentage of freight dollars being spent by mode
The percentage of overall transportation budget spent by mode
Shifts in transportation spending
The economy’s impact on transportation management
How the world’s largest shippers run their logistics operations
In this video, Nathan Pieri, Management Dynamics Senior VP of Marketing & Product Management and Russell Goodman, Editor-In-Chief of SupplyChainBrain discuss what is making Management Dynamics such a valuable partner to its clients.
Broadcasting Live September 15, 2010 at 2:00pm EST. Register now!
Global trade transactions account for trillions upon trillions of dollars each year, and this number is expanding as we forge into the future. Additionally, it is becoming more complex to manage US and international regulations.
Yet, despite these factors, compliance departments remain woefully underfunded and understaffed. According to our export compliance research, 14.6% of compliance professionals believe that their company’s executive management is not aware of trade compliance.
How do you get executive level cooperation and sponsorship of your initiatives?
Join American Shipper and Management Dynamics for an upcoming educational webinar, “Bringing Compliance into the Boardroom.” This webinar, featuring a panel of global trade experts, will discuss how to get your voice heard when speaking to your c-level executives about enhancing your trade compliance operations.
In this trade compliance webinar, expert panelists will discuss:
Pain points of each member in the boardroom
How these points relate to compliance issues
Key messaging to use when speaking to each board member
Tools to use in your presentation, such as quantifying compliance and its effect on the bottom line
How automation can contribute to your efforts by adding value and saving money
Panelists:
Virginia Thompson Director, Import/Export Operations & Global Trade Compliance Crate & Barrel
Nathan Pieri SVP Marketing & Product Management
Management Dynamics, Inc.
Here is an online tool I found that could be very useful for those of you who trade across borders. It shows the main indicators for importing and exporting to or from specific regions, with detailed drill-downs by country. Please visit http://www.doingbusiness.org/ExploreTopics/TradingAcrossBorders/ to use the tool.
While this blog is devoted to discussing supply chain management best practices, Management Dynamics has other solutions that will help you streamline all facets of global trade:
Import Automation- automate, streamline and manage the entire import function within your organization, from pre-Customs through Customs clearance and even post-entry activities.
Export Compliance – automate the international sales order management process including restricted party screening (RPS), export license determination and tracking, shipping document generation and government reporting.
Trade Agreement Management – automate the management, utilization, and qualification processes necessary for global businesses to participate in preferential trade agreements.
Supply Chain Visibility – connects importers and exporters with their overseas suppliers, logistics providers, brokers and carriers to communicate critical purchase order, shipment and inventory information and to support collaborative logistics processes.
Transportation Management – allows importers, exporters and logistics providers to manage the spiraling costs associated with shipping by sea and airfreight.
Trade Research Tools – classify products, screen for restricted parties, research regulatory controls and determine documents instantly with our web-based information services.
I have added an Events Calendar page, where I will be posting upcoming industry conferences, seminars and webinars. If you are organizing an event you’d like me to include, just leave a comment on the page!
Trade Planner 3.0 scenario-based planning solution optimizes sourcing and distribution decisions based on total landed costs and trade regulation risk
EAST RUTHERFORD, NJ, August 10, 2010 — Management Dynamics, a leading provider of Global Trade Management solutions, today announced the release of Trade Planner 3.0, a scenario-based planning tool that helps supply chain teams quickly and accurately evaluate alternative sourcing and distribution strategies to optimize total landed cost while assessing the impact of trade regulations.
According to U.S. Customs and Border Protection, companies import nearly $2 trillion worth of products annually from over 150 countries, a number that is expected to triple by 2015. With the increasing pressure to cut costs, accommodate new trade regulations, and take advantage of new preferential trade agreements, businesses need planning tools to improve the design of their global supply chains.
“Companies today are moving beyond sourcing decisions based on the lowest product invoice and are evaluating multiple dimensions including transportation costs, duties and taxes, regulatory compliance, and other country risk factors,” said Janet Suleski, Research Director, Gartner. “Scenario-based planning solutions provide key players across sourcing, logistics and compliance with the ability to make faster, more accurate sourcing and distribution decisions.”
With Management Dynamics’ Trade Planner solution, users can quickly and easily compare the costs of sourcing and distributing one or multiple products from multiple locations to identify the optimal decision. Trade Planner allows users to import product descriptions, classify products and store classifications by country in a product repository. Trade Planner is fully integrated with Management Dynamics’ Global Trade Content and supports classification by the Harmonized Schedules and Export Control Numbers for over 122 countries, and identifies all applicable embargoes, prohibitions, license requirements, and other product specific barriers to importing and exporting.
“Businesses are increasingly global in scope and need new planning tools to continually monitor total landed cost, model the cost reduction opportunities of shifting a supply base, evaluate new preferential trade agreements and assess the impact of new trade regulations,” said Nathan Pieri, SVP Marketing & Product Management, Management Dynamics, Inc. “Today, some of the world’s largest companies in retail, food service, electronics, and apparel, are utilizing Trade Planner 3.0 across the enterprise to collaborate and make better sourcing and distribution strategies by considering both cost and associated risks.”
Trade Planner 3.0 is an on-demand application that can be quickly and cost-effectively deployed – typically in a few days.
For Additional information:
Make better-informed sourcing and distribution decisions. Maintain import and export compliance with on-demand access to the most comprehensive source of global trade content in the industry. Learn more at ManagementDynamics.com/TradePlanner.
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.
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