Shifting geopolitical relationships creates challenges for
enterprises that source and ship around the world. In this QAD
Precision Report, we look at how integrating compliance and multi
carrier shipping helps multinationals to navigate these challenges.
For multinational enterprises and shippers, managing logistics across
different sites, countries and carriers is no easy task. Logistics
staff must ensure the efficient movement of goods, so that your
customers — and your customer’s customers — are not left waiting.
Delays are sometimes inevitable — such as third-party issues beyond
the control of management. However, certain delays are certainly
avoidable — such as incomplete or inaccurate documentation, resulting
in customs hold ups.
In addition, global trade is getting more complex and challenging.
That was true even before Covid-19 swept from Wuhan to the rest of the
world, disrupting supply chains across many industries.
Last October, the World Trade Organization downgraded its forecast
growth in 2019 and 2020. In February 2020, the WTO
was equally pessimistic, stating that “world merchandise trade
growth is likely to remain weak in early 2020.” According to the WTO,
it is possible that year-on-year trade growth will decline in the
first quarter of 2020, and that Covid-19 may exacerbate this.
Many of the significant issues that impacted trade in 2019 have not
gone away. True, the US and China trade war may be currently in a
lull, but the underlying tensions between the two superpowers remain.
Add to that upheaval in Europe due to Brexit. The UK formally withdrew
from the European Union on 31 January 2020. Britain has until the end
of the year to work out a trade deal with the EU, but early
indications are not promising. Nevertheless, Prime Minister Boris
Johnson has repeatedly refused to extend the transition period beyond
31 December 2020.
The Importance of Integrated Compliance Checks
No matter how complicated the trading environment in which they
operated, multinationals and global shippers must adhere to a slew of
national and international regulations as well as screen and verify
the identities of their trading partners.
It is important to note that compliance is not restricted only to
companies that export goods. Enterprises that manufacture or
distribute high tech, industrial or dual use goods, must also screen
domestic shipments. Furthermore, companies based in the US must also
comply with deemed
It is an onerous and time consuming task to manually screen every
shipment against a mountain of governmental and global regulations and
denied party lists.
compliance screening simplifies and speeds up these challenges.
Integrating compliance checks with multi carrier shipping simplifies
this process further. It is, of course, possible to use different
systems for both. However, when you use separate systems, you end up
with siloed data. In addition, when information must be re-entered
between two or more systems, human errors or missteps are always a
possibility. An integrated compliance and shipping system will vet
every shipment to ensure that it can proceed.
Streamline and Track Every Shipment with Multi Carrier Shipping
Organizations that engage in global shipping generally have highly
intertwined, complex operational needs. Consequently, many
organizations rely heavily on a handful of carriers they know they can
trust. However, many countries — especially in Europe and Asia — have
dozens of carriers, each acting independently and each with their own
set of regulations and protocols.
While trust and reliability are necessary, it can sometimes lead to
monopoly-like pricing, leaving companies vulnerable to higher prices.
On the other hand, leveraging multiple carriers reduces costs.
However, it can be a challenge to monitor all shipments and maintain
all of these relationships. Furthermore, when you use different
carrier systems, you create shipping data silos. To check three
shipments from the same facility, a logistics manager may need to
check three different carrier interfaces. Such an operational set up
is not “multi carrier” shipping, but rather “many carrier” shipping.
carrier shipping solutions make it easy to compare carriers,
service levels and costs to find the carriers that can meet your
delivery date at the best price. Multi carrier solutions also enable
you to seamlessly switch between carriers so that you always use the
most appropriate carrier and service for every delivery.
It is possible to simplify this process further with corporate
business rules along with automated routing. As a result, each
shipment is automatically assigned to a carrier and service level
based on predetermined criteria. As a result, a multi carrier shipping
solution makes it possible for multinationals to standardize shipping
rules and procedures across all their locations. The organization has
centralized shipping data, and can track all shipments from the same
portal, in the same way.
Benefits of Integrating Automated Compliance and Multi Carrier
The easiest way to streamline shipping across global sites and ensure
adherence to trade regulations is by integrating compliance and
shipping. This allows logistics managers to mitigate risk and track
all shipments, no matter the geographic location or carrier. This
offers a number of benefits:
Always use the best carriers: Instead of relying on a few
carriers for all global shipping, logistics managers will be able
to easily assess which ones have the best rates and routes for
Proactively resolve delays: Visibility is important — logistics
managers need to know where their shipments are. But visibility is
not enough in itself. Should issues arise, exception alerts allow
logistics staff to proactively deal with delays, instead of
spending time tracking shipments that are due to arrive on time.
Create standardized shipping processes: Instead of using a number
of different processes for different locations or carriers,
standardized global shipping processes make it easier to manage
carriers, compare prices and organize critical paperwork.
Automated documentation: Best-in-class solutions ensure that all
of the documents required to complete a shipment are present and
correct, in the right format and the right language. The correct
documentation is necessary to ensure your shipments are not held
in customs, resulting in financial penalties, delayed deliveries
and unhappy customers.
Reinforce customer and partner relationships: Efficiently
managing shipments increases customer satisfaction, and bolsters
trust for an organization.
About QAD Precision – Trusted Global Trade and Transportation Execution
QAD Precision, a division of QAD Inc., provides industry-leading global
trade compliance, and multi carrier transportation
execution solutions from a single, integrated platform. An
ISO-certified company, QAD Precision assists companies to streamline
and transportation operations, optimize deliveries, and increase
logistics ROI. QAD Precision’s scalable and extensible solution easily
integrates with existing ERP and WMS solutions. Industry leaders in
every region of the world rely on QAD Precision’s global support
centers to leverage thousands of carrier services and manage millions
of global trade and shipping transactions every day. For more
information about QAD Precision, visit www.qadprecision.com.