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Benefits of Integrated Global Trade and Transportation Solutions for Multinationals

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 in April. 

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 restricted 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 to ensure ongoing compliance can result in regulatory exposure. This can be due to poor or incomplete processes, employee missteps, negligence or lack of formal procedures.

Automated trade compliance software is an effective way to mitigate the risk of violations, as well as reduce the time and effort needed to ensure compliance. 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 ensure 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 and ensure all the documentation needed to complete a shipment is 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 license determination.

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 industry-leading global 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 mitigate 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.

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