Why must Trade Compliance and Logistics’ teams work together? Simply put, Trade Compliance primary function is supporting the compliant movement of tangible goods across international borders. Trade Compliance professionals need to review how the team can move beyond being simply a back office data maintenance and audit function.
International Trade Compliance is Ultimately About Logistics
At its heart, trade compliance is a function of logistics and shipping. This means that if you exclusively ship domestically, you do not have any compliance issues to deal with. However, if you ship internationally, it is mandatory that you comply with all import/export requirements of one or more Countries.
It may be helpful to think about a trade compliance solution like an accountant. Accountants provide data to the company and prepare the company for future audits. A trade compliance solution should have the same function in support of logistics.
Therefore, every trade compliance problem is a logistics problem, because fundamentally, logistics needs to use trade compliance data to make the international shipments compliant. So working out where and how logistics can access this data is crucial to a successful trade compliance and logistics program.
Trade compliance solutions help logistics by making it easier to ship; your goods do not get stuck in Customs, which keeps your partners and customers happy and revenue flowing. When goods ship on time, you minimize risk of loss of revenue and cash flow gaps.
How International Trade Compliance Can Help Logistics
In order to foster the most effective and efficient import/export process for all of your international shipments, the questions logistics and compliance should be working on together are:
Trade Compliance must become a proactive team that actually helps your business thrive with improved processes and software to streamline the creation of compliant documents and shipments that empower your logistics team.
To learn more about trade logistics and compliance or to speak with a representative about how our trade compliance system integrates Trade Compliance and Logistics, please contact us.