The world is more interconnected than ever before, and customers know it. That's why many supply chains find the need to go global in order to remain competitive in their markets. Additionally, globalization allows companies to expand into emerging and developing markets, helping to develop infrastructure to improve the lives of the people living and working in these areas. But going global with your supply chain comes with inherent risks that aren't present for companies in their home markets. Here are some tips to mitigate risks when taking your supply chain global.
Take risk and trade compliance seriously
Like any shift to a business operation, going global has inherent risks that need to be seriously considered and planned for. Many companies fail to adequately plan to mitigate risks because they failed to consider the severity of these risks. Adhering to trade compliance is a serious aspect of global trade, and planning for this is essential to the successful globalization of your business.
Strong import/export procedures
A globalization plan needs to include solid import and export procedures. Putting policies in place early will help to avoid penalties, control costs, and create reliable chains that your customers and partners can trust.
Trade compliance programs
Consider utilizing a program, such as the Import Management Compliance Program (IMCP) or the Export Management Compliance Program (EMCP) to ensure against regulatory infractions when expanding into global trade.
Implement best practices
Operating under best practices will help to ensure a smooth transition to the global markets. Verifying requirements in the country of origin and the destination, classifying items under the Harmonized Tariff Schedule, and other core standards will help to ensure products move smoothly across borders. Ensure these reasonable core standards are set within your policy.
Supply chain solutions provider
Consider utilizing a supply chain solution provider who can help to connect and synchronize global supply chains. A software system like Routeique can be used by partners across the supply chain to better manage global trade.