{"id":11730,"date":"2024-03-19T08:32:57","date_gmt":"2024-03-19T15:32:57","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=11730"},"modified":"2024-03-19T08:32:57","modified_gmt":"2024-03-19T15:32:57","slug":"5-benefits-of-digitizing-import-management","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2024\/03\/5-benefits-of-digitizing-import-management","title":{"rendered":"5 Benefits of Digitizing Import Management"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;11731&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">Manufacturers and distributors that rely on sourcing raw materials or goods have significant compliance obligations. Global trade and supply chains run on documentation and paperwork.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A <\/span><a target=\"_blank\" href=\"https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/us\/Documents\/Tax\/us-global-trade-automation-survey-report-untapped-potential.pdf\" rel=\"noopener\"><span style=\"font-weight: 400;\">report from Deloitte<\/span><\/a><span style=\"font-weight: 400;\"> found that many companies face challenges in developing their global trade management programs. The most pressing issue was lack of staff with import compliance.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many compliance departments are understaffed and underfunded. This creates the risk of a regulatory violation that may result in fines, penalties and liabilities.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some companies have been reluctant to invest in compliance. Unless they have previously been subject to penalties, they may believe that the risk of government intervention is low. It can be difficult to persuade stakeholders that they need to address a problem that has not yet arisen.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the real value of digitizing import management is not the avoidance of risk. Automating imports offers a true competitive advantage that reduces costs and increases profitability.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The Challenges of Importing Foreign-Sourced Goods<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A number of challenges are associated with importing goods. These include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ensuring timely deliveries<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determining optimal inventory levels<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Proper classification of goods\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accurately calculating duties<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Managing free trade agreement compliance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Admissibility factors such as anti-dumping and countervailing duties (AD\/CVD), and special tariffs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Documentation, recordkeeping and retaining receipts post-entry<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Trading partner screening<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">License and permit requirements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Incomplete or missing data<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Documentation requirements are burdensome and can lead to customs delays. McKinsey found that a single shipment can require as many as <\/span><a target=\"_blank\" href=\"https:\/\/www.mckinsey.com\/industries\/travel-logistics-and-infrastructure\/our-insights\/the-multi-billion-dollar-paper-jam-unlocking-trade-by-digitalizing-documentation\" rel=\"noopener\"><span style=\"font-weight: 400;\">50 documents that need to be shared with up to 30 parties<\/span><\/a><span style=\"font-weight: 400;\">. As the Importer of Record (IOR), ultimate responsibility lies with you, even if errors occur with brokers.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The Benefits of Automating Import Management<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A strategic approach involves bringing many import management operations in-house, supported by <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/import-management\" rel=\"noopener\"><span style=\"font-weight: 400;\">software solutions<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><b>Lower broker fees:<\/b><span style=\"font-weight: 400;\"> Importers can reduce broker costs by managing classifications and duty admissibility themselves. Furthermore, digital connectivity to customs and brokers, streamlines the entry process.<\/span><\/p>\n<p><b>Simplified recordkeeping: <\/b><span style=\"font-weight: 400;\">Electronic records expedites document retrieval for customs or auditing purposes. Although brokers may handle some aspects, maintaining your own copies of these receipts is important. The IOR must retain these records for specific periods, which can differ from country to country. Penalties for missing documents can potentially reach up to $10,000 per violation.<\/span><\/p>\n<p><b>Duties reductions: <\/b><span style=\"font-weight: 400;\">Importers can significantly reduce duty obligations by automatically qualifying their goods under a free trade agreement (FTA). FTA compliance is time-consuming when done manually. However, <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/free-trade-agreement\" rel=\"noopener\"><span style=\"font-weight: 400;\">software solutions<\/span><\/a><span style=\"font-weight: 400;\"> can perform eligibility checks in near real-time to boost efficiency.<\/span><\/p>\n<p><b>Admissibility alerts: <\/b><span style=\"font-weight: 400;\">By digitizing import management, enterprises will get advance notice of an admissibility requirement or flags. These could include AD\/CVD, requirements from Partnering Government Agencies, special tariffs and so forth. These alerts ensure you can meet all requirements before your shipment arrives.<\/span><\/p>\n<p><b>Shipment visibility: <\/b><span style=\"font-weight: 400;\">Digitizing import management offers <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2024\/01\/beyond-borders-the-impact-of-visibility-on-imports\" rel=\"noopener\"><span style=\"font-weight: 400;\">shipment visibility<\/span><\/a><span style=\"font-weight: 400;\"> to trading partners, including suppliers, brokers and customers. This allows for real-time tracking of incoming shipments and information sharing. Consequently, your ecosystem of trading partners can:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Address issues as they arise<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Share accurate information<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Confirm delivery dates<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improve customer service<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">How QAD Can Help<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">QAD has helped a number of companies automate import management and gain significant benefits.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A leading manufacturer of electronics sought QAD&#8217;s assistance to digitize import processes. The company needed to gain insights into duty rates for multiple countries and simplify the classification process.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another customer, a global leader in life sciences, wanted to automate import processes. This company wanted to avoid significant increases in headcount, broker fees and operational risks. QAD provided solutions for auto-consumption of invoices, identification of missing classifications, and communication with brokers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Managing imports involves a delicate dance of compliance, operational efficiency and strategic decision-making. Companies need the right tools to grapple with staffing constraints, regulatory intricacies, and the ongoing challenge of staying ahead of the competition.<\/span><\/p>\n<p><b>To find out more about QAD Global Trade and Transportation Execution capabilities, please visit our <\/b><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/global-trade-and-transportation-execution\" rel=\"noopener\"><b>website<\/b><\/a><b>.<\/b>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;11731&#8243; img_size=&#8221;full&#8221;][vc_column_text]Manufacturers and distributors that rely on sourcing raw materials or goods have significant compliance obligations. Global trade and supply chains run on documentation and paperwork.\u00a0 A report from Deloitte found that many companies face challenges in developing their global trade management programs. The most pressing issue was lack of staff with import compliance.\u00a0 [&hellip;]<\/p>\n","protected":false},"author":64,"featured_media":11731,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,2045],"tags":[2913,601,1430,516,2912],"class_list":["post-11730","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-supply-chain-trends","tag-automating-import-process","tag-digitization","tag-global-trade-compliance","tag-global-trade-management","tag-import-compliance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>5 Benefits of Digitizing Import Management | QAD Blog<\/title>\n<meta name=\"description\" content=\"Automate import processes to reduce costs, simplify recordkeeping, and enhance shipment visibility with QAD&#039;s solutions.\" \/>\n<meta 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