In this series, we look at what global supply chain managers need to do to address the challenges of global supply chains.
Multinational companies have supply chains that transcend countries and extend across the globe. For effective management of such an extended supply chain, it is necessary that there should be at least a team that is devoted 24 hours and 7 days of the week to responding to any supply chain disruption that occurs.
This ensures that supply chain functions smoothly without any disruption that causes extended delay.Those responsible for management of supply chain should have all the data and information about the products of the company. Having all the information about the products of the company help the supply chain management team to have a better understanding about the nature of products as they move across the supply chain.
This understanding helps in recognizing the permits and other legal requirements that need to be fulfilled in case of certain products.
It is the duty of the supply chain management team of the multinational company to ensure that supply chain partners located in foreign countries are legal entities and not those outlawed by the law of that country.
The supply management team should track the total costs that are involved in moving the product of the company across the supply chain. These costs include duties, taxes and other tariffs that are there in international trade.
The logistics team of a multi-national operation should be cognizant of the legal requirements that need to be fulfilled for importing a product in a particular country. They need to communicate with the customs department of that country with regard to compliance of the company with those requirements.
The supply chain & logistics team should be aware of the common terms that are used in international trade. The understanding of these terms helps the supply chain management team to fulfill all the required formalities for movement of goods across national borders. Examples of such terms are tariff numbers, country of origin, units of measure etc.
The logistics team should be aware of the documents that are required for shipping the product of the company into a particular foreign market. Different companies have different documentation requirements with regard to imported goods.
It is recommended that the documents provided should be prepared in that country and in the language of that country. A local representative of the company in that country can help in local preparation of such documents. Developments in information & communication technology have greatly facilitated electronic movement of trade documents.