technologyreview
a tool for (less) risky business
It’s best known as a
r
tool for automating
egulatory compliance
and documentation.
man
But global trade
agement software
re
can also help you
duce your exposure
to all sorts of supply
chain risks.
INTERNATIONAL TRADE HAS NEVER BEEN EASY. IMPORTERS AND EXPORTers have long confronted challenges created by differing national regulations, languages, and business cultures; long journeys by air, sea, and land; and mountains of
documents needed to satisfy government requirements at both origin and destination.
To simplify matters, many companies have turned to global trade management
(GTM) software. This software may be best known as a tool for automating time-consuming, error-prone tasks like document creation and denied-party screening.
But that’s just the tip of the trade management iceberg, so to speak. The software also
can help users mitigate or avoid all sorts of supply chain risks. (For more on GTM
software’s capabilities, see “redrawing the GTM map,” July 2007.)
Here are just three of the risks the technology can help importers and exporters avoid:
; Lawsuits, fines, jail time, and damaged reputations. That may sound extreme, but
these are very real consequences of failure to comply with customs and security regulations both here and abroad. Fines can run into the millions of dollars; in some
cases, individuals can be held legally liable for violations. Government agencies,
moreover, are only too happy to publicize the names of companies that have violated regulations.
To keep their customers up to date on changing requirements, GTM software
providers have trade experts on staff in the United States and around the world who
monitor local laws and regulations. One of these experts is Celeste Catano, principal
business analyst at software developer Kewill. A licensed customs broker, Catano is a
committee chair for U.S. Customs and Border Protection’s Trade Support Network
and a trade ambassador, which puts her in the top ranks of CBP’s industry advisers.
“I’m in Washington at least one week each month, working at CBP headquarters,”
she says. Her group also monitors other potential sources of trade regulations,
including the FDA and Congress.
