You’re stuck in a logistics nightmare. What can you do to streamline your import/export operations?

The word 'streamlining' in itself is a pointer that there is something amiss. Key requisites for building a robust logistics process are the following : 1. Understanding organizational requirements.2. Geography in which one works 3. What are the customers' needs.4. What options are available. 5. Cost benefit analysis of the various options. 6. Pre-empting of potential disruptions and lining up & be ready with multiple options as back ups.7. Use modern tools like AI/ML to create reference points moving towards mitigating surprises. 8. Periodically review the current processes to align to the dynamic situations that one faces frequently. 9. Take all the stakeholders into confidence with utmost visibility.

To streamline import/export operations amidst a logistics nightmare, begin by conducting a thorough assessment of current processes and identifying pain points or inefficiencies. Implement technology solutions such as transportation management systems (TMS) or customs compliance software to automate and streamline tasks. Establish clear communication channels with suppliers, carriers, and customs authorities to ensure transparency and coordination throughout the supply chain. Optimize inventory management practices to reduce lead times and minimize delays. Continuously monitor performance metrics and solicit feedback from stakeholders to identify areas for improvement and implement corrective actions promptly.

If the supply chain is international, optimizing it means you must pay attention to cross border processes - how goods are imported and exported. Look at what the duty rates are for your goods, and whether there are any ways to eliminate or reduce duties and taxes via free trade agreements, use of bonded warehouses, or VAT relief schemes. Make sure you understand all regulatory requirements, such as permits or certificates, prior to importing goods. Ensure documentation is complete and accurate and contains all data necessary for customs authorities to make an admissibility decision and release goods quickly. Engage a competent customs broker to prepare and submit import and export declarations on your behalf.

When dealing with high volume of transactions, a global trade management system can be a real game changer. GMT systems can be used to house product level import and export data (HTS, origin, ECCN, value, license/permit info) that can be used to create import and export documentation and to transmit data to customs brokers so that it is always right, complete and submitted timely. This mitigates declaration errors and the cost associated with correcting them or paying fines issue by customs authorities as well as the delays inaccurate declarations can cause. GTM systems are even starting to use AI to classify goods and identify regulatory requirements. It's amazing what is in the works.

If the company is small and just starting to build a global supply chain, and import/export knowledge may be lacking or not yet a full-time role. In the early days, management may be more focused on getting things from A to B rather than how, what the import/export requirements are, or doing in the most efficient and cost-effective way. This is where outside experts who can focus on a specific need like trade compliance can be a valuable resource. A consultant can identify trade requirements for your products, put processes in place to ensure goods are cleared timely and declarations are accurate, provide training, tools and templates. They can also help build internal expertise so you can fly on your own when the time is right.