Import Automation Prioritized as Security Regs Drive Accountability (Outlook 2009)
Last in my “outlook for 09″: a new priority to automate imports. Many companies have imported for years through distributors or aligned closely with a logistics service provider that facilitated the process. With the recent legislation around supply chain securty like Customs 10+2, many importers are realizing that they are fully accountable, but don’t feel like they have enough visibility and control over their destiny.
Another key trend affecting importers is the degree to which they rely on logistics providers. I have heard from many companies (especially after higher than expected rate increases) that the reliance on an LSP provided information system often limits their ability to foster competition and manage costs. Not a surprise.
What is needed is a system that centralizes compliance for an importer globally, then integrates the trading partner community to execute the process. And along the way, comply with just about any trade regulation that world governments can dream up.
Leading import automation solutions can do just that by:
- Establishing a compliant PO with respect to classification, other government agency controls, etc
- Supporting direct procurement strategies to “cut out” the middleman
- Coordinating orders with suppliers to manage ship windows and product compliance
- Gaining control over origin logistics to optimize inbound freight
- Complying with new security initiatives such as ISF
- Monitoring global fulfillment and diverting inventory as needed
- Preclearing customs and reducing brokerage fees by automating the entry process
- Controlling landed cost to pay the legally minimum amount of duty
