What’s the big deal with “global trade content?” Governments and agencies around the world are all publishing the same data, so does it matter where you get it from?
In a word, Global Trade Content is a big deal, and it is extremely important where you get your data. Global Trade Content is the database of information that importers and exporters use to determine whether they are in compliance with international regulations.
This information ranges from the harmonized tariff schedules to classify goods, to the duty rates needed to calculate landed cost, to the IMEX controls that determine whether you can legally complete your transaction. To efficiently import or export goods, you need fast access to a comprehensive source of traded content for all the countries with which you trade.
Although there is only one official source of data from each governmental agency, it is impossible for an in-house trade compliance team to keep up with the volume that each agency in every country puts out. Additionally, all data providers are not created equal. Some do not adequately cover the regions you need, some update their data infrequently (delays in data updates of only 1 week can cost you dearly!) and some do not have the in-house expertise to interpret international regulations appropriately.
ChainLink Research Connects the Dots in Global Trade Management
ChainLink Research recently discussed the challenges of Global Trade Content in their blog:
In order to solve users’ challenges, software providers develop software. Users provide the data. But in GTM the data comes from thousands of external sources, i.e. government, trade groups, etc. So the ‘solution has to be more.’
Not only are there a plethora of changing regs that end-users have to be aware of, but those changes often force them to change orders or other shipping documents, duties, etc. On a more strategic level, they may actually force them to change their physical supply chain network (as well as potential third parties who provide services in these locations). Even in large firms, there is no staff equipped with the breadth of knowledge necessary to internalize all this information and then make the changes to their forms, fees, etc.
What’s the end result? By combining a comprehensive global trade content database that covers multiple types of regulations and agencies with a system that automatically updates all of your own data, companies can lower their risk of breaching standards or breaking the law, and reap cost savings. Accurate, real-time trade content helps prevent penalties and delays, and reduces non-compliance risks. And, automating the process frees up resources to work on more strategic initiatives.
As ChainLink Research puts it:
Making informed choices about what is actually happening in the Supply Chain, across the network of trading partners, can bring tangible cost savings to firms that can cycle time and thus inventory and other carrying costs, and avoid charge backs and late fees, because they are now armed with the knowledge of what happened in the chain.
Read the complete blog post at: ChainLink Research: Global Trade Management Solution is More Than Software