Transportation Management Report 2011 - Capgemini

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and resources into keeping abreast
of global political machinations.
One possible way forward would
be to have in place, for example,
streamlined business processes and
technology solutions that monitor
inbound and outbound shipments
to determine whether there are
restrictions on the country involved
in cross-border logistics operations. If
the application identifies a problem,
it automatically takes appropriate
actions and creates a record of the
event, thereby enforcing compliance.
The most recent US initiative is
the Customs – Trade Partnership
Against Terrorism (C-TPAT), which
was born with the clear intent of
fortifying and expediting the process
of importing goods into the US. Any
company that chooses to join needs
to comply with stringent US Customs
requirements. As a result, compliant
companies can benefit from a quicker
import process with a much-reduced
risk of incurring non-compliance
penalties.
In Europe, the Authorized Economic
Operator (AEO) system, which came
into effect on 1st January 2008, is
similar to C-TPAT. It gives businesses
an opportunity to benefit from
simplifications in security and safety
by undertaking an accreditation
program.
Internal pressures:
Standardization, export &
import documentations
As organizations expand across
international borders, either through
organic growth or acquisition,
they may use different systems
or processes and as a result, find
them more complex to manage,
often resulting in: limited supply
chain visibility; varied document
management processes; and,
ultimately, a non-compliant import/
export process.
Common issues include:
• Non-standardization and
proliferation of systems (process
and technology), which can make
it difficult to see what is happening,
adversely affecting control of the
order process.
• Document management, product
categorization, customs valuation
and duty calculation, and difficulty
in working collaboratively with
government authorities.
As a way forward, implementing
a Freight Control Tower business
model, underpinned by technology,
is an effective way to reduce logistics
costs and improve customer service
in the current global economic
climate.
Solution: Freight Control Towers
A Freight Control Tower (FCT) can
be defined as a small organization
focused on freight management
strategy rather than execution.
Its mission is to facilitate freight
management of global movements.
In practice, it can be implemented as
a central organization - responsible
for import and export - with local
presence in regions, depending on
the needs of the firm.
Typically, it involves outsourcing
strategic freight management
activities to a 4PL or managing it
in-house by a center of excellence
responsible for dealing with 4PLs.