Today’s businesses are beset by a multitude of challenges around trade compliance. From a worldwide shipping container shortage, to backed up ports of entry and constantly changing global policies – it’s tough out there.

Insights from a Thought Leader in Global Trade and Logistics

Back in June, Jeff Peterson, the Director of Global Trade and Logistics at DRiV, a Tenneco company, joined the Auto Supply Chain Prophets podcast to discuss these challenges as well as new innovations in global trade and logistics with hosts Jan Griffiths and Terry Onica.

Peterson brought a wealth of knowledge in global trade, logistics and professional development to the podcast, with expertise that spans warehousing, container management, packaging engineering and inventory management. 

Ocean Container Shortage

With high demand and low capacity causing significant delays and increased costs, Jeff anticipates this situation to worsen, impacting global trade and compliance. He suggested the solution to stay ahead of disruptions is to emphasize the need for strategic planning and reliance on third-party logistics providers (3PLs).

Managing Trade Compliance

DRiV utilizes predictive logistics applications and risk analysis software to anticipate delays and disruptions, to ensure smoother operations. Leveraging this technology helps them to navigate customs clearance, port backups, and other logistical challenges, which is providing DRiV with a competitive edge.

Peterson discussed the US-Mexico border and the challenges it presents, emphasizing the importance of security programs like CTPAT (Customs-Trade Partnership Against Terrorism) and FAST (Free and Secure Trade). These programs facilitate smoother border crossings by pre-checking cargo and ensuring secure transportation. Implementing rigorous security checks and utilizing CCTV systems are critical in maintaining a secure supply chain.

Shifting Left

Peterson stressed preparation as the key to handling customs audits effectively. Peterson shared his approach of “shifting left,” which means addressing compliance and security issues up front. He maintains that by conducting internal audits and maintaining a secure supply chain, businesses can avoid surprises during official audits. This proactive strategy ensures continuous improvement and compliance.

Breaking Down Silos

Stepping back to discuss overall best practices for supply chain success, Peterson agrees that breaking down departmental silos is crucial for a cohesive supply chain. Peterson advocates for integrating trade compliance within the supply chain rather than isolating it in finance or legal departments. This approach fosters collaboration and enhances visibility across the entire supply chain.

Advice for Supply Chain Leaders

Jeff advised leaders to focus on the people aspect of the business first, have an action plan, maintain pristine data, and be ready to pivot as necessary. He also shared his success in nurturing future leaders through structured training programs and hands-on experience emphasizing the need for continuous learning and adaptation, highlighting the role of technology and automation in driving future success. His commitment to developing talent and fostering a culture of continuous improvement positions DRiV as a leader in the industry.

To listen to the podcast episode in its entirety, click here.