The Benefits of Integrating Trade Compliance and Shipping

Global enterprises may not be able to do much about ongoing uncertainties, but they can optimize their own operations. In this QAD Precision Report we look at how integrated compliance and shipping solutions benefit multinational enterprises.

In 2020, the Covid-19 pandemic has caused substantial disruption to global trade. Global enterprises and companies manufacturing or distributing from multiple sites around the world, have had to grapple with different government responses to the pandemic.

In May, the World Trade Organization (WTO) reported that international imports and exports dropped to their lowest levels in four years. The WTO quarterly goods trade barometer fell to 87.6 — anything less than 100 indicates a downturn — the lowest reading since the WTO first released the barometer in July 2016. 

Political wrangling has caused further disruption. On Tuesday, 2 June, UK and EU negotiators met, via video conference, to begin the last round of talks on their future trade relationship once the Brexit transition period ends on 31 December 2020. So far the talks have been fractious, and an agreement seems a long way off. Unfortunately, time is in short supply. Should the UK wish to extend the transition period, it must request this extension by 30 June 2020 Nevertheless, despite the lack of progress, the UK government has repeatedly stated that it has no intention of requesting an extension.  

In addition to the lack of clarity regarding future UK/EU trade trade, relations between the US and China remain difficult. Recent reports suggest that the Chinese government has asked state firms to stop large scale purchases of US agricultural products such as soybeans and pork. The move comes after the US responded to China’s plans to impose new legislation in Hong Kong by dismantling the trade and travel privileges currently available to the territory. 

Simplify Global Trade Management

There is very little that enterprises can do to mitigate global trade uncertainties. Nevertheless, they can optimize their own operations to ensure that they are better placed to navigate difficult trading conditions.

However, optimizing trade operations is easier said than done, particularly for multinationals that work across a number of geographies. Trade policies and export regulations are subject to change, and companies have a legal obligation to keep abreast of these changes.

One of the most effective and reliable ways of mitigating the risk of compliance violations is by automating trade compliance. Manually checking each shipment and customer is an onerous task. Critical compliance checks, such a denied party screening, would require ensuring that you have access to the latest government and denied party lists, as these are subject to frequent change. Furthermore, even if a company has the staff resources for this, human error can occur.

Automated trade compliance software streamlines workflows, speeding up processing times. In addition, by using an automated solution a company can standardize compliance processing across all locations. This also frees up global trade professionals to concentrate on long term planning and strategy.

The Benefits of Integrating Trade Compliance and Shipping

Multinational enterprises and global shippers have two critical needs that sometimes can seem to be at odds with one another:

1. The need to mitigate trade compliance risks;

2. The need to  ensure that their products reach their customers efficiently and cost-effectively.  

Compliance missteps can result in customs delays, fines and damaged customer relationships. Despite this, enterprises with a number of manufacturing and distribution sites across the world may not have standardized compliance procedures. Some sites may be better than others at compliance processes because they have the necessary staff to do so. 

Furthermore, many multinational companies have different shipping practices across different sites. This makes it almost impossible to have a clear picture of global trade and shipping operations.

By integrating trade compliance along with a global shipping solution, all sites will follow the same standards, workflows and processes. This ensures that compliance processes are being met, and that enterprise-wide shipping controls are being followed. As a result, global companies mitigate the risk of a compliance violation, while building stronger relationships with customers and partners by providing a consistent, reliable service.

Why Multinationals Need Multi Carrier Shipping Solutions

Most multinational companies have complex operations. As a result, many rely on just a handful of carriers. However, as we have seen during the recent pandemic, certain carriers have better capacity than others to respond to difficult circumstances. Relying on a single carrier, therefore, puts a company’s shipping operations at risk.

Of course, the pandemic is an unprecedented situation. Nevertheless, other disruptions can occur, including capacity crunches, labor disputes, and route and lane outages. 

Leveraging multiple carriers also reduces costs. When you have access to a truly global network of carriers, you can seamlessly switch between carriers to always avail of the lowest cost service that will meet your delivery requirements. However, if an enterprise is using different carrier systems to process shipments, it will be necessary to compare routes and rates first — a time consuming and inefficient process. Furthermore, all your shipping and tracking data is spread across different systems.

With a comprehensive multi carrier shipping solution, all shipment data is in one place. As a result, no matter which carriers you use, or where you ship, logistics staff can track all shipments from a single, accessible-anywhere location.

How QAD Precision Can Help

With QAD Precision’s integrated global trade and transportation solution, companies can standardize global trade and shipping operations across their entire enterprise, control costs and mitigate compliance missteps from a single software solution. This offers a number of benefits. These include:

• Reduced shipping costs

• Access to a global multi carrier network

• Streamlined enterprise-wide processes

• Reduced IT complexity

• Increased efficiency

• Automated customs reporting and documentation

• Multilingual documentation

• Ongoing access to current denied party lists

To find out how QAD Precision can help your organization, please contact us for an obligation-free consultation.

LET’S KEEP IN TOUCH

If you would like to subscribe to the QAD Precision Report, or would like to receive notifications about QAD Precision events, webinars and news, please click here.

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 their import, export 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.