Shipping goods across multiple geographies is a complex process.
In this QAD Precision Report we look at why multinational benefit
from integrating their global trade and transportation operations.
Political wrangling has had a significant impact on global trade this
year. In early October, the World Trade Organization downgraded
forecasts for growth, predicting that merchandise
trade volumes would rise just 1.2 percent in 2019. That
figure is less than half the 2.6 percent growth the WTO had forecast
The WTO claimed that slowing economic growth was partly due to trade
tensions — in particular, the ongoing trade war between the US and
China. Nonetheless, the WTO also noted that country-specific cyclical
and structural factors had had an impact, as had uncertainty around Brexit.
Geopolitical relations have always had ramifications for how and
where companies can trade. As a result, companies that manufacture
from multiple sites, or ship products to and from multiple
geographies, are subject to a host of compliance challenges. When
political changes occur — such as sanctions — businesses must respond accordingly.
Regulation can and does change at a rapid pace. In addition to
sanctions, businesses must comply with ever-changing lists of denied
or restricted persons and entities with whom it is illegal to trade.
Denied or sanctioned party lists are issued by governmental and
international bodies. These are subject to frequent changes, making
manual checks and compliance a difficult task for companies that do
business across multiple geographies.
Nevertheless, global shippers must adhere to current regulations, no
matter how complex or onerous due diligence may be. Violations can
have serious consequences — up to and including jail.
Automating Compliance Screening
Global enterprises that ship products from and to different parts of
the world often lack standardized procedures. Very often, this can be
the result of challenges presented by doing business across different
geopolitical or regulatory regimes. Equally likely, especially for
companies that have grown through acquisition, is that each location
has its own company culture, legacy systems and local guidelines.
While there certainly are benefits to tailoring your business
procedures to the local context, lack of corporate-wide standards can
result in regulatory exposure. This can be due to poor or incomplete
processes, employee missteps, negligence or lack of formal procedures.
trade compliance software is an effective way to mitigate
the risk of violations, as well as reduce the time and effort needed
to remain compliant. Manual processes that would take hours can be
done in a matter of minutes, with minimal risk of errors. Furthermore,
using a software solution creates detailed audit-ready reports.
Standardized compliance processes are particularly critical for
global companies with decentralized operations and where subsidiaries
work independently. Enterprises that standardize trade compliance
policies and systems and leveraging shared data, reduce risk, and
expedite processing time.
Integrating Compliance and Transportation
Global manufacturers and shippers can leverage software solutions to
mitigate the risk of compliance missteps. For global shippers, automated
compliance checks should be performed at the beginning of the
export sales process to check that the sale can proceed.
Integrating compliance checks with transportation execution saves
time and reduces the possibility of errors as there is no need to
switch applications or re-key data. An integrated solution will also
identify license and permit requirements and exceptions.
Furthermore, all the documentation needed to complete a shipment will
be automatically created and included.
Automated documentation production significantly reduces the time
needed to process a shipment. Global shipments generally travel with
lots of paperwork. These can include commercial invoices, accredited
carrier labels, general purpose shipping labels, address labels,
packing lists, bills of lading, dangerous goods notes, and driver
manifests. Goods sent with incomplete documentation or without the
necessary licenses are likely to be delayed or returned.
How QAD Precision Can Help
Global enterprises must ensure that shipments reach their customers
reliably and cost-effectively. In addition, multinationals need to
mitigate compliance risks and control shipping spend.
If you export goods, an integrated solution for global trade
management, documentation production and transportation execution
simplifies every step of this process. With QAD Precision’s integrated
solution, all major functions — compliance checks, trade
documentation, and shipping — are done through the same solution,
using the same software and data. Due to this integrated system
architecture, 95 percent of the information needed for each shipment
transaction is automatically provided. This significantly improves
productivity and streamlines the shipping process, as well as reduces errors.
From the beginning of the export process, QAD Precision vets the
transaction, and alerts the appropriate personnel to critical export
shipping and/or regulatory controls, including export screening and
QAD Precision also automates documentation production and customs
reporting. Therefore, all of the documents needed to complete a
shipment are prepared correctly and presented in the right format and
language. This includes export documentation, transportation
documentation and carrier compliant labelling.
An integrated shipping solution with standardized processes also
makes it easier to manage carriers, compare prices and organize
critical paperwork. With QAD Precision, you can automatically compare
rates, routes and service levels to find the best carrier for your
needs, or using QAD Precision’s routing guide and your own business
rules, carriers can be automatically selected depending on the
characteristics of a shipment.
With QAD Precision’s integrated global trade and multi carrier
transportation solution, enterprises can automate compliance and
documentation, minimize shipping costs, optimize first and last mile
deliveries, and increase logistics ROI.
About QAD Precision – Trusted Global Trade and Transportation Execution
QAD Precision (Precision Software), a division of QAD Inc., provides
trade management, transportation
execution and multi
carrier shipping software solutions from a single,
integrated platform. Preeminent industry leaders in every region of
the world rely on QAD Precision’s global support centers to leverage
thousands of carriers and manage millions of shipping transactions
every day. Our open architecture easily integrates with Enterprise
Resource Planning, Warehouse Management Systems and legacy solutions.
An ISO-certified company, QAD Precision assists companies to minimize
shipping costs, optimize first mile and last mile deliveries, automate
free trade agreement compliance, avoid customs delays and
the risks associated with dynamic trading environments to
maximize their competitive advantage. QAD Precision’s customers span
multiple industries including banking and finance, life sciences, high
technology, retail, industrial, automotive, higher education and
public sector as well as logistics providers. For more information
about QAD Precision, visit www.qadprecision.com.