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
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.
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.
Multinational enterprises and global shippers have two critical needs
that sometimes can seem to be at odds with one another:
The need to mitigate trade compliance risks;
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.
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
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,
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
Automated customs reporting and 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.
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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.