If COVID-19 has taught us one thing, it’s that we need to prepare for future supply chain disruptions. The pandemic caused empty shelves and huge shortages of critical things such as cleaning supplies, meat, poultry, and toilet paper. The impact on international supply chains was indisputable.
Inefficient and wide space points of failure occurred throughout the supply chain. The processes and inadequacies range from people to technology. At this time, after a taste of the supply chain disruptions, it’s become apparent that everyone must strive to avoid future disruptions.
Evaluate Processes
Companies have started to step back and examine their operations. They must focus on their current state including the daily, monthly, and quarterly activities.
All tasks performed must be documented and strict protocols set. Identify all areas that suffer inefficiencies and start to focus on solutions to save not only money but also time.
Ask these important questions:
- Can you identify trade lines to use for free trade agreements to help improve efficiency?
- Take advantage of any duty drawbacks and start to carry out a first sale rule to help lower your duty liability.
- Does your product have a lower duty rate, and can you take advantage of foreign trade zones?
- Could you move your production to a cheaper or easier location?
Examine Redundancies
Redundances are often viewed as equipment and suppliers, but the pandemic has shown everyone that backups are a necessity. People often retire, have a baby, become ill, or change jobs. You must have a backup plan to delegate their responsibilities so your supply chain does not grind to a halt.
The Benefit of Technology
Using cloud-based technology is a way to ensure accuracy and can effectively carry out mundane tasks.
You’ll want to implement existing technology to utilize a free trade agreement. You can save time by automating classification work. Add value-added activities that are based on creativity and flexible thinking. You’ll want to use technology to handle all transnational activities with a customs agent, an import broker, or a customs broker.
Improved Compliance
It is imperative that you stay on top of technology, people, and processes plus compliance. Using available technology to carry out tasks that you currently perform manually will eliminate the possibility of human error and give you automatic updates on any changes in regulations or rules that could cost you if you accidentally miss them.
When picking your employee roster, you’ll want to go with well-trained people who have competent backups, so you don’t stray from compliance.
If you should encounter compliance issues, then you can streamline and document all processes that cover every step of your supply chain to ensure faster and easier diligence.
At Sobel Network, we provide shipping consulting. As a customs brokerage company, we are here to meet all your needs. Contact us to learn more.
