top of page

Supply chain management is crucial for success in today's business environment, which is becoming more unpredictable and constantly changing. How businesses run their supply chains has undergone significant transformation in the last few decades. Technology has had a massive impact on how companies operate, from prewar economies where centralized production was essential to postwar economies, which saw the emergence of vast networks of worldwide suppliers. Experts forecast more significant change for 2021 as operational flexibility and digital capabilities become even more critical for success in this new climate. In this article, we'll examine the implications of these developments for our supply chain models as they currently stand and offer insight into what to expect from them.



Pre-COVID Supply Chain Implications

Supply chains were already changing during the COVID-19 outbreak as businesses sought to streamline their logistical networks and improve efficiency. To stay up with shifting consumer needs, enterprises must frequently invest in new technological solutions and boost their e-commerce fulfillment capacities. As a result, many businesses increased their spending in these areas as they looked for ways to improve the efficiency of their supply chain operations.



Before the pandemic, third-party logistics providers (3PLs) were increasingly used for warehousing and shipping services. Companies were trying to gain enhanced flexibility and cost savings when managing inventory levels and delivery expenses by outsourcing their fulfillment needs. Due to the increased demand for enhanced supply chain agility brought on by the events of 2020, this trend toward 3PLs has only accelerated.

Moreover, there has been a rising understanding among organizations of the value of visibility throughout the whole supply chain process. Businesses desired access to real-time data insights to decide where to deploy resources or how to move products through each phase of the delivery process, from supplier delivery to the end consumer. Investments in software systems with analytical capabilities were necessary to achieve an enhanced level of visibility into performance measures, such as delivery times or quality assurance requirements. This is another area where current events have accelerated pre-pandemic trends.


COVID-19 Implications

The health crisis severely disrupted worldwide supply chains. Many businesses are now dealing with delays and interruptions out of their control. This was especially true for individuals who depended on foreign partners or suppliers, as wealthy countries closed their borders and tightened travel regulations. Due to delays in the supply chain, those businesses found themselves unable to satisfy client requests or complete orders on time.


Furthermore, businesses increased their focus on cost-cutting activities in response to the economic consequences of COVID-19 to survive during those challenging times. Companies were forced to take dramatic measures, including laying off staff and increasing technology spending. This includes investing in new technology and solutions that help streamline their supply chain operations.


What Does This Mean for Supply Chains Going Forward?

1. The Increased need for Digital Capabilities

With the advent of new technology and tools that give businesses greater visibility into their operations, digital capabilities have become more crucial than ever for supply chains. Companies may make informed decisions about how resources should be allocated or how items should flow through each stage, from supplier delivery up to final delivery at consumer doorsteps, by investing in software solutions that provide real-time data insights, thereby allowing businesses to react quickly and effectively to changes in demand and cutting costs associated with wasteful inventory management processes This provides a competitive advantage. Digital capabilities can also assist firms in fortifying their resilience against potential setbacks like those brought on by pandemics or natural disasters.



2. The need for more Operational Flexibility

Operational flexibility is crucial for adapting to a rapidly changing business climate. To stay up with shifting consumer expectations and industry developments, businesses must be ready to change their strategy quickly. For instance, if a company wants to stay competitive in these challenging times, it may be necessary to transition from traditional brick-and-mortar stores to e-commerce platforms. They may also require access to third-party logistics providers (3PLs) warehousing and transportation services to manage fulfillment requirements.

3. Increased need to Diversify Suppliers

Finally, in light of recent developments in 2020/2021, reallocating resources toward enhancing supply chain resilience has become a top goal for many businesses. Instead of primarily relying on a single source country, companies must seek ways to diversify their suppliers. This technique could be helpful in coping with another global pandemic.


Supply Chain Outlook for 2023


The Need to be more watchful

Companies must be mindful of any supply chain bottlenecks that can still create delays or disruptions in 2023. Businesses must take a multi-faceted approach to protect their supply chain, which calls for onshoring and diversifying away from China. In addition, companies should consider adopting predictive analytics, such as machine learning algorithms.


The Need for Risk Management Plan

Secondly, firms must create new methods for managing risk to be better ready for unforeseen circumstances in their supply chains. This includes investing in insurance policies that cover losses associated with unexpected disruption events beyond what is covered under conventional business interruption coverage plans currently provided by insurers and diversifying suppliers to reduce reliance on a single source country. Additionally, businesses should consider setting aside funds to handle these emergencies so that operations may continue without having to mitigate critical services due to a lack of funding.


The Need To Embrace The Latest Technologies



Finally, technology within our supply chains will be crucial in the future for greater visibility into performance measures, such as delivery times or quality assurance requirements. This is already happening now as a result of COVID-19-related conditions. Businesses can meet customer demands more effectively while cutting costs associated with unnecessary inventory management practices by investing in software systems that provide real-time data insights across all stages of the processes. By doing this, businesses can decide where resources should be allocated or how products should move through each step along their journey.

Conclusion

The events of 2020, 2021, and 2022 have permanently altered the way we conduct business. Supply chains have been drastically altered, forcing companies to make swift strategic changes to stay competitive in this unpredictably changing market. Businesses can increase visibility into performance metrics across all process stages by investing in digital capabilities such as predictive analytics and machine learning algorithms. Operational flexibility is also crucial for making quick adjustments when necessary. Businesses must be able to quickly change their strategy in response to changing customer expectations or new rules implemented by governments after an agreement has been ratified. Moreover, in light of recent developments in 2020/2021+, reallocating resources toward enhancing supply chain resilience has become a top focus for many businesses. Instead of primarily relying on a single source country, companies should look for ways to diversify their suppliers. This strategy could help them deal with unforeseen delays or disruptions in the future if unanticipated global events like COVID-19 hit us hard again any time soon. Setting up reserve funds for handling these emergencies can also help ensure that operations continue without having to reduce critical services due to a lack of funding during periods of ambiguity like the one this pandemic has thrown upon us all.

In the end, being ahead of the curve is essential for assuring future success in today's constantly shifting environment. As we get closer to a post-COVID future, investing today in technologies that offer better visibility into operations and adaptable strategies that are prepared for any unexpected interruptions can help keep your organization competitive beyond 2023.



0 views0 comments

Updated: Nov 12, 2022


Businesses frequently work with customs brokers while bringing goods into any country. The Custom Broker ensures her clients' shipments adhere to the rules and regulations that a country's Customs and Border Protection enforces. They assist clients in understanding rules about their imports, given that imports differ.

Licensed customs brokers stay current with the legislation governing global trade. These brokers manage the logistics of shipping goods across borders by serving as intermediaries between the federal government and import/export businesses.

Custom brokerage is one of the jobs with an almost even distribution in terms of gender. According to zippia.com, the ratio of men to women employees of customs brokers is 51:49 %

If you are a business person, have any interest in getting into the importation and exportation business, or have been close to someone who's already into it, you must have heard the word customs broker being used on many occasions.

Wondering what this means? wonder no more because this article will help you to understand what it's all about.

To understand what/who a customs broker is, you might want to know what Customs is all about.

Customs refers to an agency or authority in a country responsible for collecting tariffs and controlling the import and export of goods.

For this process of importing and exporting goods to be made easy, a customs broker is needed.



WHAT IS A CUSTOMS BROKER?

A customs broker is, therefore, a professional (individual or company) who provides expert services to facilitate the importation and exportation of goods.


WHAT DOES A CUSTOMS BROKER DO?

What exactly do these expert services of customs brokers entail, you might ask? Customs brokers perform various services, some of which are outlined below.

- Customs brokers process the necessary documentation needed to ensure that shipment meets all applicable laws for the importation and exportation of a particular good.

- They determine and track tariffs on goods, determine the taxes, and process payment on behalf of the client.

- Custom brokers attend meetings with Customs officials on behalf of their clients

- They coordinate the transportation and storage of the goods to safely reach the client.



HOW MUCH DOES A CUSTOMS BROKER EARN?

According to salary.com, the average salary of a customs broker in the United States of America as of 26th September 2022 stands at $82,926. The range varies between $71,433 and $95,153 depending on educational qualification, certification, and experience.

The employment rate for customs brokers in the United States of America in 2020 was 348,700 and is projected to be at 370,300 by 2030. That's an increase of 6% [careeronestop.org]

It looks like a fertile sector to venture into.



HOW TO BECOME A CUSTOMS BROKER

If this sounds like anything you might want to give a try, here's everything you want to know about becoming a customs broker.

To become a customs broker in the USA, the following criteria must be met

1. You must be an American citizen of 21 years old and above

2. You must not be a current federal government employee

3. You must possess good moral values.

If you meet the above eligibility requirements, in addition to your academic qualification (at least a degree in the related field of studies):

- You must first pass the customs broker license examination

- You must submit a Customs broker license application with the required fees

- Your application must be accepted by the US Customs and Border Protection (CBP)



WHY YOU NEED A CUSTOMS BROKER

All businesses that trade across international borders face one problem—how to effectively and expeditiously clear goods through Customs.

After learning about a Customs broker, you may want to consider the career path or seek the services of one for your import/export clearance. Here are some reasons why a customs broker is a necessity for any importation and exportation business:

For goods to be cleared at the port, there's a lot of paperwork involved—from submitting information related to the quality, quantity, and destination of goods to payment of tariffs and follow-up for goods to be cleared.

The customs broker steps in as an expert to handle this cumbersome process and help to trim costs. Below are ways a Customs broker can help importers and exporters.

❖ Evaluate goods that need to be cleared and ensure that they comply with all the necessary regulations of the country.

❖ Register entries of your goods with customs authorities.

❖ Generate an electronic entry for the consignment of goods if required.

❖ Ensure the customs authorities clear the goods quickly after verifying all the necessary documentation, and if required, follow up with them to ensure prompt delivery

❖ Provide a copy of the customs entry to you, including the receipts of the duties paid for clearing the goods from customs (transparency)

❖ International trade policies are quite strict, and shipments might get delayed even if one document is missing. This issue can be solved with the help of customs brokers because they know the rules and regulations and can keep the mandatory documents in order.

❖ There is a need for customs brokers if you plan to expand your customer base and focus on your core tasks. They know exactly what to do and will do it on time.

Now that you know who Customs brokers are and what they do, you can either be on yourself by fulfilling the conditions above or reach out to us if you need one.

Do you need customs brokerage or other Logistics services, Check out our services website.


20 views0 comments


Don't #1:

  • Don't assume that your product is exempt from US import restrictions or that those that are in effect at any given time will always be so.

Don't #2:

  • Don't forget to look into any "specific requirements" that may apply to the import of the product.

Don't #3:

  • Avoid being complacent about how your products are categorized or giving them arbitrary harmonized code numbers.

Don't #4:

  • Don't represent the nation of origin for your imported product based on "common sense" or "gut sentiments."

Don't #5:

  • Don't overlook the possibility that you could be qualified to take advantage of a preferential duty program provided by US Customs Law (American goods returned, American goods assembled abroad, Generalized System of Preferences) or by one of the many trade agreements the US has made with individual nations (Israel) or groups of nations (NAFTA).

Don't #6:

Don't forget that the transaction value (entry value) of an import is determined by adding numerous add-ons, such as various royalties and license fees, the cost of assistance, etc., to the FOB value of the imported product.

Don't #7:

  • Make no false statements on your admission documents.

  • Avoid or decrease duties by not misrepresenting transaction values on your imported goods.

  • Avoid giving false information about the country of origin of your imported goods in order to participate in a preferential duty scheme to which you are not legally eligible.

Don't #8:

  • Don't forget to consider the performance history of your overseas vendor when choosing the best payment option for your import operations.

Don't #9:

  • Don't confuse INCOTERMS with other sales terms formulations, such as the Warsaw Terms, the Uniform Commercial Code, or the Revised American Foreign Trade Definitions.

Don't #10:

  • Don't forget to consider the insurance coverage's sufficiency for your import transactions, taking into account the transfer points for title and risk of loss as well as the chosen payment method.

Don't #11:

  • Do not assume that using a letter of credit will serve as a replacement for a legal, binding purchase agreement.

Don't #12:

  • Don't forget to make sure that your import transactions are consistent.

Don't #13:

  • Don't forget to provide your customs house broker with a letter of instructions, and make sure they are covered by errors and omissions insurance.

Don't #14:

  • Do not ignore your obligation to follow US Customs Law's record-keeping standards.

Don't #15:

  • Don't forget to determine whether duty drawback, a program funded by the US government and available to US importers, is applicable.

12 views0 comments
bottom of page