A survey released last week by the supply chain practitioners network SCM World finds a host of global trade management issues impacting international shippers.
The study, sponsored by GTM software vendor Amber Road, includes responses from 114 practitioners inside and outside of SCM World’s membership in June, as well as follow up interviews with nearly a dozen executives.
Among the findings:
- More than three-quarters (80 percent) agree shipments delayed by customs or experiencing customs problems impact customer service in a material way.
- Nearly 90 percent say the same about unpredictable lead times on international shipments.
- More than half (58 percent) agree their inability to take advantage of preferential duty programmes or free trade agreements is costing them a material amount today and unless corrected will only increase.
- More than 57 percent of respondents agree complying with global trade regulations is one of the top concerns they face as a global business.
SCM World concluded that global trade management must be tackled in two parts: improved visibility and use of third party compliance professionals to ensure the enumerable customs regulations worldwide are being satisfied.
“Data from our study shows that despite the rewards of getting global trade right and the costs of getting it wrong, most supply chains have yet to crack the problem systematically,” SCM World said. “The most common way of handling trade management processes and the information needed to support such processes is some combination of manual work in spreadsheets, clunky home-grown systems and arm’s length relationships with third-party partners.”
The report is available to SCM World members
. - Eric Johnson