Small businesses are often the heartbeat of local economies. But could some of your best customers be waiting overseas? Outside of governments and multinational corporations, international trade was, until recently, a discipline that most small businesses didn’t dare attempt. Paperwork, fees, regulations, tariffs, language barriers: keeping a business afloat is hard enough without piling on [...]
Small businesses are often the heartbeat of local economies. But could some of your best customers be waiting overseas? Outside of governments and multinational corporations, international trade was, until recently, a discipline that most small businesses didn’t dare attempt. Paperwork, fees, regulations, tariffs, language barriers: keeping a business afloat is hard enough without piling on all of these concerns (and added costs).
But ecommerce and globalization have radically changed the landscape, according to Michael Lee, the director of global marketing for the massive, international B2B ecommerce platform Alibaba.com. He told Small Business Computing that engaging in the international marketplace online “is a good opportunity for small businesses to expand their footprint globally at low or minimal cost.”
Click here to read the complete article.
Source: Pedro Hernandez | Small Business Computing
Governments are facing a series of “convergence challenges” on the future of the international trading system, according to a report issued on Wednesday by a 12-member panel convened by WTO Director-General Pascal Lamy. The report – which was issued under the Director-General’s own responsibility – marked the conclusion of a process that was announced at [...]
Governments are facing a series of “convergence challenges” on the future of the international trading system, according to a report issued on Wednesday by a 12-member panel convened by WTO Director-General Pascal Lamy.
The report – which was issued under the Director-General’s own responsibility – marked the conclusion of a process that was announced at the global trade body’s 2011 ministerial conference. The panel that prepared the report was made up of 12 members from the business sector and civil society, and had been tasked with identifying 21st century trade challenges.
The report – which takes a medium to long-term view of the trading system’s challenges – provides “food for thought” for both WTO members and other stakeholders, the Director-General told a packed conference room at the organisation’s headquarters in Geneva.
The 40-page document is divided into three chapters: one on the state of trade and its contributions to growth and development; the second on the “transformational factors” of the current global economy that have, in turn, shaped trade; and a third on the panel’s recommendations for potential action.
Click here to read a full outline of the report.
The full report The Future of Trade: The Challenges of Convergence can be accessed by clicking here.
Source: Bridges Weekly Trade News Digest | ICTSD
A new ICC Commission on Customs and Trade Facilitation held its first meeting in Paris this week, establishing an agenda to expand the trade facilitation work undertaken by the former ICC Committee on Customs and Trade Regulations to include international multi-modal transport and logistics issues. Providing a global, cross-sector business forum, the consolidated commission seeks [...]
A new ICC Commission on Customs and Trade Facilitation held its first meeting in Paris this week, establishing an agenda to expand the trade facilitation work undertaken by the former ICC Committee on Customs and Trade Regulations to include international multi-modal transport and logistics issues.
Providing a global, cross-sector business forum, the consolidated commission seeks an integrated approach to trade facilitation, encouraging issue consolidation and coherence in ICC policy-making that is in line with ICC’s ultimate objective of facilitating global trade.
“Determining procedures to facilitate trade by combining the expertise of specialists in customs and transport is a tremendous contribution to world trade and therefore to job creation,” said ICC Secretary General Jean-Guy Carrier.
“ICC is enthusiastic about the potential of this new approach to attract new member companies to our work, as they see for themselves the advantage of working together,” he said.
Commission projects for 2013 include producing guidelines for traders and providing input on customs valuation and classification to the World Customs Organization’s private sector consultative group.
The commission will be led by Chair Anthony Barone, Director, Global Logistics Policy, Pfizer and reinforced by the inclusion of a Vice-Chair with expertise in transport and logistics issues.
Mr Barone said: “The objective of the new commission is to identify strategic issues that will have a material impact on trade. Ideally we would like to achieve significant modernization rather than incremental steps.”
Despite the impressive success of trade liberalization, domestic industries continue to find ways to use the power of government to protect themselves from foreign competition. The practice of using domestic environmental or consumer safety regulation as a way to disguise protectionist policy has become a serious and growing problem in the United States. This regulatory [...]
Despite the impressive success of trade liberalization, domestic industries continue to find ways to use the power of government to protect themselves from foreign competition. The practice of using domestic environmental or consumer safety regulation as a way to disguise protectionist policy has become a serious and growing problem in the United States. This regulatory protectionism harms the U.S. economy and violates our trade obligations.
A number of factors combine to explain the rise in regulatory protectionism. Economic globalization has provided Americans with access to a wide range of imported products. This has enabled consumers to demand not only high-quality products at low cost but also products that are produced according to consumers’ philosophical or ethical preferences. Simultaneously, domestic producers seeking protection from this influx of imports must find alternative shelters now that the use of tariffs and quotas is constrained by international law and economic good sense. The consequence is a perfect storm in which social welfare activists and special commercial interests join forces to promote regulatory regimes that unfairly and unnecessarily restrict imports.
There is already a system of laws in place to prevent regulatory protectionism. The rules of the international trading system recognize that domestic laws can be just as protectionist as tariffs. Many of the disciplines of World Trade Organization (WTO) law are embedded in the rules U.S. administrative agencies follow when setting new regulations.
But the U.S. government must take its WTO obligations more seriously. Prior to implementing a new regulation, federal agencies should be required to evaluate the possibility that less trade-restrictive alternatives could meet regulatory goals as effectively as their preferred proposal. Also, the U.S. government should not dilute or bypass the multilateral rules of the WTO through bilateral or regional negotiations that accept managed protectionism.
This paper uses a number of recent examples of protectionist regulations to show that the enemies of regulatory protectionism are transparency and vigilance. Policymakers should be skeptical of regulatory proposals backed by the target domestic industry and of proposals that lack a plausible theory of market failure. These are red flags that the proposal is the product of privilege-seeking special interests disguised as altruistic consumer advocates.
Click here to download the policy analysis.
Source: K. William Watson and Sallie James | Cato Institute
New Study from The Hackett Group: Manufacturers Abandoning Outsourcing To Drive Down Costs, Shifting Focus to Internal Operations, Supply Chains US manufacturers are targeting an aggressive 1.5 percent reduction in cost of goods sold (COGS) for 2013 in an effort to drive margin growth, according to a new study from The Hackett Group, Inc. With [...]
New Study from The Hackett Group: Manufacturers Abandoning Outsourcing To Drive Down Costs, Shifting Focus to Internal Operations, Supply Chains
US manufacturers are targeting an aggressive 1.5 percent reduction in cost of goods sold (COGS) for 2013 in an effort to drive margin growth, according to a new study from The Hackett Group, Inc.
With GDP growth stabilizing in major regions of the world, manufacturers are expecting reduced sales forecast uncertainty, enabling them to plan supply requirements and manufacturing capacity with far greater confidence, the study found. The Hackett Group’s research showed that companies are taking advantage of this stability by looking inward for cost reduction opportunities and other improvements: companies are turning to strategic sourcing, improving their operations, and optimizing their supply chain networks.
According to the research, the focus for 2013 cost improvements will continue to move away from outsourcing and towards internal manufacturing productivity, which is expected to contribute nearly 50 percent of the overall improvement. The Hackett Group found that while companies aggressively used outsourced manufacturing to reduce costs through 2011, starting in 2012 companies shifted away from this strategy, and expect to be much less reliant on outsourcing for savings in 2013 as well.
Last year The Hackett Group issued research showing that the tide has begun to turn on the flow of manufacturing jobs from the U.S. to China and other low-cost countries. The research found that some companies are already reshoring a portion of their manufacturing capacity, and this trend is expected to reach a crucial tipping point by 2015, as the total landed cost gap between the two nations continues to shrink, driven in part by rising wage inflation in China and continued productivity improvements in the U.S. The new study’s findings indicate that manufacturers are indeed shifting focus of improvement initiatives away from offshoring and outsourcing.
“Over the past few years major companies have outsourced the large majority of the activities that can be managed by third parties, to take advantage of low-cost locations,” said Dave Sievers, a Principal and the Practice Leader of The Hackett Group’s Strategy & Operations Practice. “But in many cases the labor cost gap is shrinking, making on-shore and near-shore manufacturing much more attractive. At the same time, new opportunities for cost reduction are emerging, including internal optimization, materials cost cuts, and reduced energy prices. For 2013, companies are clearly focusing on building the skills and infrastructure they need to take advantage of these trending opportunity areas.”
More details on the research findings are available on a complimentary basis, with registration by clicking here.
Canada is beginning to experience gaps between what global commerce requires for success and what the country’s workforce can supply, according to the study International Trade Workforce Strategy – Report of the FITT Human Resources International Trade Sector Study spearheaded by FITT. One gap is a shortfall of the number of people in many occupations [...]
Canada is beginning to experience gaps between what global commerce requires for success and what the country’s workforce can supply, according to the study International Trade Workforce Strategy – Report of the FITT Human Resources International Trade Sector Study spearheaded by FITT. One gap is a shortfall of the number of people in many occupations that are core to international trade. The other is a gap between the demand for, and availability of, new competencies that are critical to successful global trade.
The report, supported by Human Resources and Skills Development Canada and created in collaboration with Mercer, a global leader in HR consulting, also recommends specific actions for Canadian business leaders, the educational community, and government policymakers to take to close these gaps.
Click here to read about the concrete actions that businesses, government organizations and educational institutions can take to fill Canada’s workforce gaps and ensure the country remains trade ready.
The buzz over BRICs (Brazil, Russia, India and China) may have been replaced by news of CIVETS (Colombia, India, Vietnam, Egypt, Turkey ans South Africa), but opportunities still abound in all these countires, Make sure you’re ready to begin trading with these busy markets- join I.E.Canada for its upcoming international webinars. Sign up for one [...]
The buzz over BRICs (Brazil, Russia, India and China) may have been replaced by news of CIVETS (Colombia, India, Vietnam, Egypt, Turkey ans South Africa), but opportunities still abound in all these countires, Make sure you’re ready to begin trading with these busy markets- join I.E.Canada for its upcoming international webinars. Sign up for one or take advantage of the savings and sign up for an entire series!
Series I
1) Importing into Russia
April 11, 2013 1:00pm – 2:30pm EST
2) Importing into Japan
April 25, 2013 1:00pm – 2:30pm EST
3) Importing into India
May 9, 2013 1:00pm – 2:30pm EST
CLICK HERE for more information and to register.
Series II
1) Importing into Turkey
June 6, 2013 1:00pm – 2:30pm EST
2) Importing into Vietnam
June 20, 2013 1:00pm – 2:30pm EST
3) Importing into South Africa
July 11, 2013 1:00pm – 2:30pm EST
CLICK HERE for more information and to register.
Member Registration Rate: $150/session or 3 for $300 (full series)
Non-Member Registration Rate: $200/session or 3 for $500 (full series)
The region of Upstate New York, next door to Ontario, is dividing along trade lines: into businesses that export and those that do not. A new study of the region’s top 30 publicly traded companies shows clear evidence of a two-track economy, with a widening gap in revenue growth between companies that have expanded abroad [...]
The region of Upstate New York, next door to Ontario, is dividing along trade lines: into businesses that export and those that do not.
A new study of the region’s top 30 publicly traded companies shows clear evidence of a two-track economy, with a widening gap in revenue growth between companies that have expanded abroad and those focused on the domestic market. Between 2007 and 2011, companies with international operations or exports have grown their revenue an average of 13% more annually than companies that have stayed at home.
The comprehensive study, done jointly by the World Trade Center of Buffalo Niagara and HSBC Bank (which owns Business without Borders) “reaffirms a lot of things we know,” says Chris Johnston, president of the World Trade Center. “There is a big variance between companies doing business internationally and companies doing business domestically, and that spread directly relates to their growth rate.”
The study looked at the numbers of 30 leading companies headquartered in the area, such as Constellation Brands, Moog Inc., Paychex, National Fuel Gas Company and Seneca Foods. It found that while both international and domestic companies suffered a decline in the darkest days of the global economic recession, from 2008 to 2010, the decline was not as steep for international companies. In the global rebound period of 2010-2011, international companies in Upstate New York grew at a rate of 4.59% versus 1.69% for domestically focused companies.
Click here to read the complete article (free subscription required)
Source: Deborah Stokes | Business without Borders
The Census Bureau has posted on its Global Reach blog the following information identifying highlights of a recent final rule revising the export reporting requirements in the Foreign Trade Regulations. Post-departure filing The post-departure filing timeframe has changed from 10 calendar days to five, but the moratorium on accepting new applications for post-departure filing is still in [...]
The Census Bureau has posted on its Global Reach blog the following information identifying highlights of a recent final rule revising the export reporting requirements in the Foreign Trade Regulations.
Post-departure filing
The post-departure filing timeframe has changed from 10 calendar days to five, but the moratorium on accepting new applications for post-departure filing is still in place.
Port of export
The port of export for shipments by overland transportation is where the goods cross the U.S. border into Canada or Mexico, including transshipments through Canada or Mexico to other countries.
Click here to read more.
Source: STR Trade Report
Do you currently operate in a niche market? Have you considered expanding into new markets? The decision to export a product or service to an international market often depends on the financial resources of a company, the product lifecycle and the product itself. However, a recent survey completed by EDC’s Online Research Panel also found [...]
Do you currently operate in a niche market? Have you considered expanding into new markets?
The decision to export a product or service to an international market often depends on the financial resources of a company, the product lifecycle and the product itself. However, a recent survey completed by EDC’s Online Research Panel also found that the push to diversify can be dictated by the demand for their products or services, and a planned strategy.
A market entry strategy details how to market, sell, deliver and distribute your products in another country. The strategy also defines ways of obtaining contracts and delivering them in that country. Some of the most common methods for selling to a new market include: directly exporting products or services to a foreign buyer, indirectly exporting products or services using a distributor or consultant, and manufacturing products in the target market.
Description:
What does a strong market entry strategy require? Join Export Development Canada and its panel of international experts as they explore:
• All potential market entry methods, such as licensing, Greenfield projects, franchising, turnkey projects, and joint ventures;
• How to develop a thorough analysis of potential competitors and possible customers;
• Some of the risks incurred when entering a new market; and
• Domestic and international partners that are available to assist in your international trade success.
Who Should Attend:
Canadian companies interested in developing or enhancing their international trade portfolio.
Date: Thursday, February 28, 2013
Time: 1:30 p.m. – 2:30 p.m. (EST)
Cost: Free
Click here to register for this event.
So many negotiations, so little time… As Canada starts working on the second phase of its Global Commerce Strategy, trade experts say that the Harper government has to take a careful look at its strategy for negotiating trade agreements. “Our Government will aim to complete negotiations on a free trade agreement with the European Union [...]
So many negotiations, so little time…
As Canada starts working on the second phase of its Global Commerce Strategy, trade experts say that the Harper government has to take a careful look at its strategy for negotiating trade agreements.
“Our Government will aim to complete negotiations on a free trade agreement with the European Union by 2012. It will also seek to complete negotiations on a free trade agreement with India in 2013. In all international forums and bilateral negotiations, our Government will continue to stand up for Canadian farmers and industries by defending supply management.”
Overly ambitious? What we do know is that these forecasts in the June 2011 Throne Speech have not always matched reality. Negotiations between the EU and Canada have yet to be concluded, and on a recent trade trip to India, Prime Minister Harper was forced to recognize the slow pace of trade talks aimed at boosting trade with the world’s largest democracy. And while Ottawa has officially made its way into discussions concerning a potential Transpacific Partnership, more and more Canadians are adamantly demanding an end to supply management, which is the backbone of much of Canada’s farming industry.
This is the backdrop against which International Trade Minister Ed Fast, last May, mandated a panel of leaders from the business world to advise him on how to proceed in the coming years. He is expected to unveil his new Global Commerce Strategy within the next few months.
The most recent draft of the White Paper on Canadian international trade dates back to 2007. At the time, the persistent deadlock in the Doha round of trade talks signalled a shift away from the multilateral approach, and Canada dove into a series of bilateral and regional negotiations. Those efforts produced a half dozen free-trade agreements with some 10 countries as well as a dozen foreign investment promotion and protection treaties, most notably one with China last year.
So what might the next step be? Should the government continue along the same path? Or has it gone too far, too fast? Should Canada take the time to better gauge its needs and the risks associated with such an intensive agenda? Lawyers and other experts weigh in.
Click here to read the complete article.
Source: Hugo de Grandpré — CBA National
SMART Prosperity Now: Go Global! will be the last full event in the FedDev Prosperity Now funding. The purpose of the event is to highlight CME’s Smart Prosperity Now initiative, provide the latest information to manufacturers on export opportunities and to share best practices on export strategy and financing. Don’t miss this opportunity to find out [...]
SMART Prosperity Now: Go Global! will be the last full event in the FedDev Prosperity Now funding.
The purpose of the event is to highlight CME’s Smart Prosperity Now initiative, provide the latest information to manufacturers on export opportunities and to share best practices on export strategy and financing. Don’t miss this opportunity to find out how you can access up to $75,000 in funding.
Date: Thursday, February 14, 2013
Time: 8 a.m. to 3:30 p.m.
Place: The Mississauga Convention Centre | 75 Derry Road, Mississauga, Ontario
Click here for the official flyer, including information, agenda, and registration.
Canada’s trading patterns have changed fundamentally over the past decade. The Canadian–U.S. trade relationship is waning in importance, while emerging markets, particularly China, are becoming increasingly important. Also, our trade strengths are shifting away from some manufactured products toward professional services and products related to our natural resource wealth. These changes are not just the [...]
Canada’s trading patterns have changed fundamentally over the past decade. The Canadian–U.S. trade relationship is waning in importance, while emerging markets, particularly China, are becoming increasingly important. Also, our trade strengths are shifting away from some manufactured products toward professional services and products related to our natural resource wealth. These changes are not just the result of the strong dollar; the growing role of emerging markets and shrinking trade barriers are key drivers. This briefing examines these changes and a wide array of factors affecting them.
Click here to download the report (free subscription required).
Source: Conference Board of Canada
Related: USTR Sets Out Trade Policy Priorities with China for 2013
The top investment focus for over 75% of discrete manufacturing companies is the move to Global Trade Management platforms or solutions that integrate data sharing and workflows with internal users and a myriad of countries, suppliers, carriers, and trading partners. This Sector Insight focuses on the key process and technology differentiators identified as supply chain [...]
The top investment focus for over 75% of discrete manufacturing companies is the move to Global Trade Management platforms or solutions that integrate data sharing and workflows with internal users and a myriad of countries, suppliers, carriers, and trading partners. This Sector Insight focuses on the key process and technology differentiators identified as supply chain executive priorities and used within the discrete industry segment to improve Global Trade Management processes and product flow across an increasingly more global, multi-tier, and complex network.
Discover how Best-in-Class companies:
• Insure Alignment with Trade Regulation
• Boost Corporate Performance with Analytics
• Increase Speed to Market
Click here to download the research paper.
Source: Aberdeen Group
“A problem with thinking in acronyms is that once one catches on, it tends to lock analysts into a world view that may soon be outdated.” — Ruchir Sharma Ruchir Sharma is the head of Emerging Markets and Global Macro at Morgan Stanley Investment Management. He is also the author of Breakout Nations: In Pursuit [...]
“A problem with thinking in acronyms is that once one catches on, it tends to lock analysts into a world view that may soon be outdated.” — Ruchir Sharma
Ruchir Sharma is the head of Emerging Markets and Global Macro at Morgan Stanley Investment Management. He is also the author of Breakout Nations: In Pursuit of the Next Economic Miracle, published earlier this year.
In six short pages, Mr. Sharma pours a lot of cold water on the notion of the BRICs – Brazil, Russia, India, and China – as a four-team economic powerhouse, with more than a few barbs at economic forecasting generally. After noting, for example, the relative weakness in recent years of the Russia economy and the Russia stock market, he suggests that “Russia remains a member of the BRICs if only because the term sounds better with an R.” He is not much kinder to India and Brazil. As for China, in Mr. Sharma’s view, most of the hype over emerging markets can, or should be, attributed to China alone.
On economic forecasting generally he offers these insights:
• “The current fad in economic forecasting is to project so far into the future that no one will be around to hold you accountable.”
• “The longest period over which one can find clear patterns in the global economic cycle is around a decade.” And,
• “Most CEOs and major investors still limit their strategic vision to three, five, or at most seven years…”
Broken BRICs: Why the Rest Stopped Rising is a link to Mr. Sharma’s Foreign Affairs article as it appears on the website of the Council on Foreign Relations.
Current & future economic and business trends The global marketplace has seen big changes this past year, and only more change can be expected in 2013. Many of the world’s economies will look very different in the years to come – new leaders will emerge and new opportunities will arise for businesses operating internationally. Join [...]
Current & future economic and business trends
The global marketplace has seen big changes this past year, and only more change can be expected in 2013. Many of the world’s economies will look very different in the years to come – new leaders will emerge and new opportunities will arise for businesses operating internationally.
Join David Watt, Chief Economist for HSBC Bank Canada and Dr.Thomas Homer-Dixon, CIGI Chair of Global Systems, Balsillie School of International Affairs, professor and award-winning author, as they explore the global marketplace in its current and future state.
This event will feature presentations highlighting:
• A current look at the global economy and future projections
• Key economic, social, political and environmental factors in the emerging markets
• Canada’s role in the global marketplace
• Macro and sectoral opportunities for companies in 2013 and beyond
Don’t miss this opportunity to learn how your company can navigate this fast-paced economic climate.
Register today!
November 19: Toronto
November 20: Saskatoon
November 21: Edmonton
November 22: Calgary
November 23: Vancouver
These events are free and exclusive to Business without Borders members. Not yet a member?
Register for free today
MSNBC’s Lawrence O’Donnell explains why the policy of “getting tough on China” isn’t as easy as some U.S. political figures assert. “What’s absolutely true is that any tariff put on any product in this country is paid, not by the country that produces the product, it is paid by American consumers when they purchase that [...]
MSNBC’s Lawrence O’Donnell explains why the policy of “getting tough on China” isn’t as easy as some U.S. political figures assert.
“What’s absolutely true is that any tariff put on any product in this country is paid, not by the country that produces the product, it is paid by American consumers when they purchase that product. Tariffs are simply sales taxes on American consumers and that’s why tariffs are almost always self-defeating. So, if a president wants to get tough with China and slap some heavy tariffs on Chinese products, the question for that president is very simple…”
In the wake of the global financial crisis, many economists and policymakers are advocating the use of regulations to control the cross-border flows of capital. However, such capital account regulations (known as CARs) often are limited or prohibited by commonly-used provisions in trade and investment treaties. This policy brief describes the outcomes of a “compatibility [...]
In the wake of the global financial crisis, many economists and policymakers are advocating the use of regulations to control the cross-border flows of capital. However, such capital account regulations (known as CARs) often are limited or prohibited by commonly-used provisions in trade and investment treaties. This policy brief describes the outcomes of a “compatibility review” between the ability to implement capital account regulations and standard provisions of the global trading system. It argues that changes should be made so that the two systems are more compatible, providing countries – especially developing countries – with the policy space to employ CARs to stabilize their economies and stave off boom-and-bust cycles and still participate in bi-lateral and multi-lateral trade and investment treaties.
This review was conducted at a workshop of the Pardee Center Task Force on Regulating Capital Flows for Long-Run Development held in June 2012 at the Center for the Study of State and Society (CEDES) in Buenos Aires, Argentina. The workshop was co-sponsored by the Pardee Center, CEDES, and the Global Development and Environment Institute (GDAE) at Tufts University, with support from the Ford Foundation. A Pardee Task Force Report that provides an in-depth examination of the issues discussed in this policy brief is scheduled for publication in 2013.
Click here to download the complete policy brief.
Kevin P. Gallagher is Associate Professor of International Relations at Boston University and Pardee Center Faculty Fellow, and a Research Fellow at GDAE.
Leonardo E. Stanley is Associate Researcher in the Department of Economics at the Center for the Study of State and Society in Buenos Aires, Argentina.
Procurement, Compliance and Logistics Professionals all play Important Roles in ordering Products Global importers simply don’t have the option of depending on a single supplier for a variety of items. Both the demands of supply chain resiliency and the reality of maintaining stock levels make it necessary to obtain the same item from multiple suppliers. [...]
Procurement, Compliance and Logistics Professionals all play Important Roles in ordering Products
Global importers simply don’t have the option of depending on a single supplier for a variety of items. Both the demands of supply chain resiliency and the reality of maintaining stock levels make it necessary to obtain the same item from multiple suppliers. Particularly if you are a global retailer or manufacturer with distributed outlets or plants, it’s neither practical nor possible to source all units from a single vendor.
This is where the concept of multiple sourcing comes in — literally buying items from more than one source. While multiple sourcing is straightforward in theory, as a practice it is more complex from a global trade management perspective, including implications for landed cost, compliance and logistics.
Consider the example of a large global retailer that is purchasing a basic white t-shirt for thousands of retail outlets located in ten countries. The retailer has four different suppliers, each in a different country, capable of fulfilling t-shirt orders. What are the implications of placing an order with each of these suppliers to ensure adequate global stock levels of the white t-shirt?
• Landed cost — Each shipment of shirts will have a different landed cost associated with it since it will be coming from and to a different country. Freight, insurance, duties and taxes all play a role in determining landed cost, and there may also be preferential trade programs, countervailing or anti-dumping duties in place between some of these countries.
• Compliance — Each country has different regulations in place for importation of the white t-shirt. This can include rules around fiber content, bleaches or chemicals used in the manufacturing process, labeling requirements and subtleties in product classification. Agencies other than Customs may be involved, and each government has its own set of import filing forms and rules.
• Logistics — Getting the shirts from manufacturer to retail outlet is no small task. Each shipment must be rated and booked, and multiple land and sea carriers will need to be managed and tracked.
A global trade management system should inherently and intuitively approach the complexities of multiple sourcing of goods at the product level. This means that it needs to store information about the multiple sources and account for all the permutations in a single product record. It also needs to perform import cost calculations and check compliance for all the relevant country of import/country of export combinations.
Final Thoughts
Procurement, compliance and logistics professionals all play important roles in ordering products. Access to a centralized repository of sourcing information via a GTM system makes it possible for these professionals to place orders in an efficient and compliant manner.
Source: Nathan Pieri, Senior VP, Marketing & Product Management, Amber Road
