There are internal and external factors and forces that can have a negative or positive impact on the success of your business. However, there are also ways to help reduce possible risks where the supply chain sphere is concerned. Whether you are considering branching out into the global market, or you are already facing supply chain issues, worry not, the following five tips can help you to alleviate possible risks:
1.Take Risks Seriously.
According to a study on supply chain risk management conducted by the University of Tennessee, ninety percent of supply chain executives who participated in (or responded to) the study, did not count risk as a threat to their companies. It is important for companies to treat supply chain risks and trade compliance with seriousness.
2.Implement Strong Export/Import Procedures.
Comply with policies to help your company evade possible penalties, control costs, and create a reliable supply chain.
The company’s ‘Buy-in’ should start at the executive level- with this support, the compliance policy might carry more weight.
Implement a programme to assist the company with thorough record-keeping, auditing, and self-reporting- this may help lessen penalties. If ever the company finds itself facing any problems, regulatory agencies, the Bureau of Industry & Security, and (CBP) Customs and Border Protection will take into consideration the strength of a company’s compliance program.
3.Use Trade Compliance Programs.
For the best insurance against regulatory contravention, consider the IMCP and the EMCP: Import Management Compliance Program (IMCP) and the Export Management Compliance Program (EMCP).
These programmes evaluate the risk that comes with trade compliance, they regularly monitor changes, requirements, training, record-keeping, and auditing. If needed, the EMCP and IMCP programmes can make suggestions and monitor remedial actions.
4.Implement The Best Practices.
Procedures to help companies reduce risk and supply chain disturbances:
Categorize items in chronological order or order of importance. Classify them from components to items that are more expensive.
Classify items beneath: ‘Harmonized Tariff Schedule for duties’ and the tax purposes, and by jurisdiction (military vs. commercial dual-use).’
Look at the Restricted Party List and Denied Party List which should be published by the U.S. government and the United Nations and, screen parties against these lists. Also, look at lists published by export control regimes in the regions where your business is located.
Confirm and fulfill requirements, (for countries of origin and destination) be familiar with imports or exports laws, and especially how shipments are regulated.
Make sure that all documentation meets the export and import regulations.
5.Consider A Supply Chain Solutions Provider.
Hire specific (or specialized) providers for supply chain solutions. These providers assist companies in entering the global marketplace as a faster pace, and they find customized solutions for your company.
Bring a highly skilled team on board to manage the supply chain of your company and alleviate possible risks if you are seeking long-term success in the global market.