As global commerce grows, international shipping and manufacturing efforts are becoming increasingly detailed and complex. As the industry grows, however, so do the dreaded rules and regulations. Often, shipping and logistics managers are tasked with completing pages and pages of compliance reports for each shipment to ensure smooth transportation.
And, as luck would have it, compliance checkpoints aren’t something manufacturers can just sweep under the rug. In fact, the average cost of enterprise-level compliance fraud is around 1.1 million Euro. Besides the obvious risk of fines, there are other issues that arise if an organization fails to monitor compliance issues, including shipping delays, supply issues, lost shipments and missed delivery deadlines. In some cases, failure to comply could result in you, the shipper, experiencing more complex and lengthy clearance processes for each export or worse still, having your export privileges withdrawn. All of these factors contribute to an organization’s overall credibility and the strength of its customer relationships.
Luckily, there are innovative solutions available for global, enterprise-level industrial manufacturers that take the guess work out of trade compliance efforts. In this post, we’ll take a look at what trade compliance automation entails and how these solutions can help manufacturers save time and money—not to mention a few headaches.
How Does Trade Compliance Automation Work?
Compliance automation solutions take the guesswork out of trade compliance management processes. Logistics managers can stay fully up-to-date on new regulations, monitor compliance processes across global shipping sites and even share compliance reports with curious customers or partners.
With a cloud-based trade compliance solution, logistics managers can effortlessly handle all facets of compliance regulations and paperwork from a single online application. This means that all stakeholders have 24/7 access to specific compliance documentation, customs reporting and even international product classification codes. Logistics managers no longer have to waste precious time filling out duplicate paper reports or answering repetitive questions. All of the answers are available online at the click of a button.
Trade compliance solutions help global enterprise industrial manufacturers streamline compliance processes by:
- Monitoring changes to compliance regulations in real-time by quickly checking international and government lists and then notifying key stakeholders of any new updates
- Automatically running background checks on countries, carriers or prospective partners to help organizations avoid engaging with any entities with red-flags or embargos
- Storing compliance data and license information to quickly identify and complete license requirements with minimal manual research or input
- Track and report past compliance metrics to continuously improve compliance processes and workflows
Mitigating Risk, Increasing Efficiency and Protecting Your Bottom Line
With these automated compliance management tools at their disposal, global industrial manufacturing organizations can proactively mitigate risk, protect employee resources and time and save money. The manual processes that used to take hours are now done in a matter of minutes, with minimal risk of errors. Detailed audit reports help build credibility with new customers and partners while streamlined processes reduce the risk of financial penalties and fines.
With a compliance automation solution, industrial manufacturing organizations that focus on international trade and shipping can now provide unparalleled customer service while increasing internal efficiencies.
Compliance automation solutions help international logistics managers see results across the board by:
Maximizing internal efficiencies
Instead of relying on manual processes, automated compliance tools take the guesswork out of compliance. By combining historical data, real-time regulation information and previously stored customer and partner profiles, a trade compliance solution creates a holistic compliance workflow in the online solution. Logistics managers are now free to focus on critical issues, such as working 1:1 with customers or developing relationships with partner organizations.
Tracking critical processes
For an organization to be truly risk-free, every single process, workflow and report must be tracked, documented, organized and stored for future reference. Known as the compliance audit trail, it’s a critical part of how global manufacturers comply with international regulations. For a trade compliance automation tool to be successful, it must be able to cross-reference an organization’s compliance audit trail with various international regulations and customs requirements.
For international manufacturers themselves, the ability to track critical audit processes is a great way to build credibility in the marketplace and can lead to an increase in new customers, new partners and, most importantly, the overall bottom line.
Keeping tabs on sanctions and denied parties
Global trade management solutions help export teams stay on top of transactions to always ensure compliance with the safety standards of individual countries. This allows managers to not only identify denied parties, but also controlled products and embargoes or sanctioned countries.
Ensuring 100% compliance
No matter when an organization needs to run trade compliance checks—whether at the beginning of a customer relationship, during a partner screening or for a border request—a global trade compliance solution makes it easy to visualize all aspects of a specific compliance request, track any additions or edits and take action on any issues. Compliance automation makes it easy to do due diligence and stay on top of any compliance errors, effectively eliminating any risk of compliance penalties, fines or shipping errors.
By leveraging PRECISION Trade Compliance, international manufacturers can start to proactively streamline internal processes and operations to deliver the best customer experience possible. Learn more about our global trade solutions by requesting your personal consultation today.