One of the most important issues for YCA,
says Kim, was systems integration. In order to
keep accurate track of shipments and inventory—and their related import and export transactions—as the goods move into and out of the
zones, the software must interface with YCA’s
enterprise resource planning (ERP) system and
the third parties’ warehouse management systems (WMS).
“There’s so much information that has to be
managed … and some of that has to come all the
way from manufacturing up through distribu-
tion,” Slossberg says. “The ERP interface is
critical because that’s where detailed infor-
mation about what’s coming into the
zone begins.”
The WMS integration
enables Yamaha’s daily
inventory reconcilia-
tion, which compares
inventory in its
ERP system, data
on what has physi-
cally entered and
departed from the FTZ, and
the information submitted
to customs. The software
does “a three-way check” to
make sure YCA, the third-
party operator, and customs have
consistent information, and alerts YCA if
there is a discrepancy, Slossberg notes.
So much information is involved that integration is essential for error reduction, streamlined
processing, and timely reporting, Kim says.
“Without integration, day-to-day operations
would be overwhelming.” Data collection and
reporting is so automated, in fact, that YCA
manages both FTZs with just one full-time and
one part-time staffer.
IMMEDIATE SAVINGS
YCA’s foray into foreign trade zones has been “an
extremely successful project when it comes to
cost savings,” Kim says. The importer no longer
pays duties on imported merchandise that is
later exported, and it does not pay state and local
inventory taxes on goods while they are in the
FTZs. YCA has reduced customs brokerage fees
and can delay customs entries and duty pay-
ments until goods have been sold and leave the
zones for U.S. consumption.
