International shipping and manufacturing are becoming increasingly
detailed and complex. With this comes an array of 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. These
include shipping delays, supply issues, lost shipments and missed
delivery deadlines. In some cases, failure to comply could result in a
more complex and lengthy clearance processes for each export. Worse
still, you could have your export privileges withdrawn.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 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
up-to-date on new regulations and monitor compliance processes across
global shipping sites. They can also share compliance reports with
curious customers or partners.
With a cloud-based solution,
logistics managers can effortlessly handle all facets of compliance
regulations from a single application. This means that all
stakeholders have 24/7 access to specific compliance documentation.
These include customs reporting and even international product
classification codes. Logistics managers no longer have to waste 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
checking international and government lists. Key stakeholders are
then notified of updates
Automatically running background checks on countries, carriers or
prospective partners. This helps organizations to 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 automated compliance management tools, global organizations can
proactively mitigate risk, protect employee resources and time and
save money. Manual processes that used to take hours are done in a
matter of minutes, with minimal risk of errors. Detailed audit reports
help build credibility with new customers and partner. Furthermore,
streamlined processes reduce the risk of financial penalties and fines.
As a result, 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
therefore 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 and documented as well as
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. Therefore, 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 also 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
trade compliance solutions help export teams stay on top of
transactions to remain compliant 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.
Staying on top of 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 as
well as stay on top of any compliance errors, effectively eliminating
any risk of compliance penalties, fines or shipping errors.
By leveraging Trade
Compliance, international manufacturers can start to proactively
streamline internal processes and operations to deliver the best
customer experience possible.