American Shipper will be hosting a webinar that will address the findings from the recent Import Operations & Compliance Benchmark Study: Risky Business, published by American Shipper and BPE.
Management Dynamics’ CEO, Jim Preuninger, was featured as an IT Thought Leader in last month’s issue of Inbound Logistics. In the feature, Mr. Preuninger discusses trending topics such as the role of technology in the optimization of global supply chains, and steps to simplify the import or export process.
These [global trade management software] tools provide an immediate and visible return on investment, enabling companies to reduce costs, improve operations, shrink manual data entry errors, facilitate cross-border movements, and improve customer service. In addition, reducing cycle times, eliminating bottlenecks, improving distribution networks, lowering out-of-stocks, and determining the best way to ship freight can also lower emissions, an ecological goal for many companies.
He also offers some sound advise for companies who may be looking to take the next step toward globalization:
Companies no longer have to take on all facets of international trading at once. And with the advent of cloud computing, otherwise known as Software as a Service (SaaS), companies can collaborate with trading partners around the globe with minimal start-up costs and headaches using a pay-as-you-go model.
AberdeenGroup has released a brand new report, Strategies for Mastering Trade Compliance and Supply Chain Complexity, which reveals the findings of a survey they did with 136 importers and exporters in August and September of this year. According to the survey, trade compliance teams are actively revamping their Global Trade Management (GTM) programs, specifically their trade compliance systems, to stay current with supply and demand fluctuations, growing global operations, increasing operational complexity and risk, and trade lane changes.
This report provides an in-depth and comprehensive look into process, procedure, methodologies, and technologies with best practice identification and actionable recommendations. A few notable statistics from the survey are that:
58% of respondents indicate that internal stakeholders outside of the compliance department do not understand the risks of non-compliance
42% indicate that manual processes are becoming too cumbersome
28% claim they are mostly manual and spreadsheet driven, while 64% claim manual or spreadsheet on some components
34% cite total landed costs among the top three ranked improvement areas for compliance in 2010
There is no silver bullet for a successful GTM/GTC program – it is a combination of excellence in the areas of access, enablement internally and externally, process/technology, and proactive planning and execution. When these things are aligned, in proper combination, they yield superior results.
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
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.
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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