Metrics to determine the best Customs Clearance Software for your Business
Customs clearance is the activity of clearing merchandise for export or import internationally, which is a critical component of the global supply chain. The activity involves complying with all the applicable customs procedures and regulations, after which the goods are cleared for export or import.
The exponential rise in international trade, accompanied by increasing levels of globalization, has led to a corresponding increase in the goods and products that need to be cleared by customs.
Customs requirements have also become complex over the years, where business owners and supply chain managers engaged in international trade have had to allocate more resources and time for customs clearance tasks.
Compliance with customs processes and rules has largely been challenging, involving vast amounts of documentation and coordination with various players in the international transport process.
Exporters, importers, customs brokers, and supply chain managers increasingly use customs clearance software to automate and streamline the process. Every international shipment must pass through customs clearance, transforming this essential step into a powerful catalyst for unparalleled data collection across the supply chain.
Customs Clearance Software and its Role in Supply Chain Management
Customs clearance software can assist in digitalizing paperwork and automating information sharing and customs processes.
Effective customs clearance software can significantly ease the complexities associated with business ownership, particularly for those engaged in international trade.
Leveraging technology reduces the struggle of the task, reducing human effort and thus enhancing efficiency and accuracy levels.
Challenges in selecting customs software can arise from several factors:
- Lack of clarity on desired business outcomes
- Incorrect understanding of how functionalities of customs clearance software will help attain ultimate objectives
- Numerous customs clearance software solutions available in the market
- Element of subjectivity in evaluating and selecting customs clearance software
For business owners or supply chain managers considering deploying customs clearance software, shifting their focus from functionality to results is important.
Benefits of Using Customs Clearance Software for Supply Chain Management
Customs clearance software is a game-changer for supply chain management, offering many benefits that streamline international trade operations. Businesses can significantly reduce the risk of delays, fines, and penalties associated with non-compliance by automating and optimizing the customs clearance process. Here are some of the key benefits of using customs clearance software for supply chain management:
- Improved Compliance: Ensuring all necessary documentation is accurate and complete is crucial for avoiding costly errors and omissions. Customs clearance software automates this process, reducing the risk of non-compliance and associated penalties.
- Increased Efficiency: Automation saves time and reduces the need for manual data entry, allowing staff to focus on higher-value tasks. This not only enhances productivity but also minimizes the likelihood of human error.
- Enhanced Visibility: Real-time tracking and monitoring of shipments provide businesses with up-to-date information on the status of their goods. This transparency reduces the risk of lost or delayed shipments and allows for more proactive supply chain management.
- Better Decision-Making: Data analytics and reporting capabilities offer valuable insights into supply chain performance. These insights enable businesses to make informed decisions about their logistics and supply chain operations, ultimately improving overall efficiency and effectiveness.
By leveraging these benefits, supply chain managers can enhance their strategy and ensure smoother, more efficient operations.
Key Factors to Consider When Choosing Customs Clearance Software for Business Owners
A shift in perspective by business owners and supply chain managers can lead to a more objective software selection process. By approaching the decision with a broader view — from the initial business idea to final software deployment — they can significantly improve the chances of choosing the most suitable solution and ensuring its successful implementation.
It is essential to focus more on the expected outcome and the ultimate benefits anticipated by deploying the customs clearance software, rather than on specific functionalities. This implies emphasizing how functionalities will serve the organization’s purpose instead of considering the functionalities in isolation.
The critical points entailed in this process are explained below:
1. Defining business outcomes
The starting point involves defining the expected business outcomes. This paves the way for deciding which specific functionalities will best help achieve the desired outcomes.
For those running their own business, defining clear business outcomes is crucial for selecting the right customs clearance software.
To take a real-life example, a business that wants real-time visibility of cargo status has to first decide whether the objective is to provide customers with daily updates on the status of their shipments or to optimize inventory levels. Depending on the objective, the business is then in a better position to decide the frequency and accuracy of information related to the status and location of the shipment.
2. Key Metrics for Supply Chain Strategy Evaluation
Critical metrics for evaluating customs clearance software would include:
a) Business needs: determining business needs and the degree of flexibility permitted and aligning with software capabilities. A case in point is the example of the need for real-time visibility mentioned above.
In addition to traditional metrics, incorporating social media marketing strategies can provide a more comprehensive evaluation of the software’s impact on business growth.
b) Software and Counterparty Risks: Decision makers in the customs clearance software procurement process must consider risks arising from both the technology and the vendor.
Technology risks arise from the software not incorporating the latest advances such as ML and AI, while counterparty risks pertain to the vendor’s financial stability, industry expertise, and commitment to R&D.
c) Value: The evaluation is based on the holistic value that the competing software options can bring to the business, both in tangible and intangible terms, rather than being guided solely by costs and the purported sophistication of functionalities offered.
d) Longevity: Guage the vendor’s commitment to innovation in the logtech solutions segment and the possibility of forming long-term partnerships, forming the bedrock of the company’s technological roadmap.
3. Key Features to Look for in Customs Clearance Software
Selecting the right customs clearance software is critical for optimizing your supply chain process. Here are some key features to look for:
a) Automated Data Entry and Validation: The software should automatically populate customs forms and validate data to ensure accuracy and compliance. This feature reduces the risk of errors and speeds up the clearance process.
b) Real-Time Tracking and Monitoring: Real-time updates on the status of shipments are essential for staying informed and making timely decisions. This feature enhances visibility and allows for better supply chain logistics management.
c) Integration with Existing Systems: The ability to integrate with existing enterprise resource planning (ERP) systems, transportation management systems (TMS), and other logistics software is crucial. Seamless integration ensures that all systems work together efficiently, allowing managers to apply their supply chain management skills more effectively.
d) Compliance with Regulatory Requirements: The software must comply with all relevant regulatory requirements, including customs regulations and trade agreements. This ensures that your business remains compliant and avoids potential fines and penalties.
e) Scalability and Flexibility: The software should be able to handle large volumes of data and adapt to changing business needs. Scalability ensures that the software can grow with your business, while flexibility allows for adjustments as your supply chain strategy evolves.
By focusing on these key features, supply chain managers can select a customs clearance software that meets their specific needs and enhances their overall strategy.
Importance of Partnering with Vendors in the Global Supply Chain
Businesses need to adopt a partnership approach when it comes to selecting a customs clearance software vendor, especially for those managing their own company, with the intent of developing a strong and strategic relationship, wherein the vendor’s role evolves to that of a technology partner.
While opening discussions with software vendors, business owners, and supply chain managers need to be upfront about their long-term vision and the business issues that the technology is expected to address.
Often, it so happens that the software selection process degenerates into an exercise in compiling functionalities required by each department and evaluating the available options in terms of specific functionalities (as opposed to the overall value they add to the business or how well the functionality serves the overall objective).
Decision makers need to change their stance and communicate more openly on the end goals, thereafter putting the onus on the software vendor to explain how their products will add value and help in attaining the stated goals.
Such an approach would ensure the vendor’s commitment to the company’s objectives right from the onset and form the basis of a long-term, mutually beneficial partnership.
Implementation and Integration
Implementing and integrating customs clearance software requires careful planning and execution. Here are some key considerations to ensure a smooth transition:
Planning and Strategy
Before implementing customs clearance software, businesses should develop a clear plan and strategy for the implementation process. This should include:
- Defining Project Goals and Objectives: Clearly outline what you aim to achieve with the new software. This could include improving compliance, increasing efficiency, or enhancing visibility.
- Identifying Key Stakeholders and Their Roles: Determine who will be involved in the implementation process and what their responsibilities will be. This ensures that everyone is on the same page and working towards the same goals.
- Developing a Project Timeline and Budget: Establish a realistic timeline and budget for the implementation process. This helps to manage expectations and ensures that the project stays on track.
- Identifying Potential Risks and Mitigation Strategies: Anticipate potential challenges and develop strategies to mitigate them. This proactive approach helps to minimize disruptions and ensures a smoother implementation process.
Training and Support
To ensure successful implementation and integration, businesses should provide comprehensive training and support to staff. This should include:
- User Training: Provide staff with the skills and knowledge needed to use the software effectively. This could include hands-on training sessions, online tutorials, and user manuals.
- Technical Support: Offer technical support and troubleshooting to resolve any issues that may arise. This ensures that any problems are quickly addressed, minimizing disruptions to the supply chain process.
- Ongoing Maintenance and Updates: Regularly update and maintain the software to ensure optimal performance. This includes installing software updates, monitoring performance, and addressing any issues that arise.
Ongoing Maintenance and Updates
To ensure that customs clearance software continues to meet the evolving needs of the business, ongoing maintenance and updates are essential. This should include:
- Regular Software Updates: Ensure that the software is regularly updated to reflect changes in customs regulations and trade agreements. This keeps the software compliant and up-to-date.
- Performance Monitoring: Monitor the performance of the software to identify areas for improvement. This helps to ensure that the software continues to meet the needs of the business.
- User Feedback: Solicit feedback from users to identify areas for improvement and optimize the software. This ensures that the software remains user-friendly and effective.
By following these steps, businesses can successfully implement and integrate customs clearance software, enhancing their supply chain process and ensuring long-term success.
Final Thoughts
It is evident that in a dynamic tech landscape, businesses need to modify their customs clearance software procurement strategies, and perceive vendors more as entities who add value to the business (and not merely as providers of off-the-shelf logtech solutions).
In a dynamic tech landscape, the role of a supply chain analyst becomes increasingly important in ensuring the smooth operation of customs clearance processes.
Decision makers in charge of procuring customs clearance software, including supply chain managers, need to deliberate and focus on result-driven metrics, and thereafter strategically engage with competing logtech vendors in the interest of forming long-term relationships.
If you aspire to stay ahead of the curve in global trade and international shipments by partnering with a customs clearance software provider, look no further than KlearNow. Customers have testified to its efficacy, reporting that KlearNow’s customs clearance solutions have helped reduce the average time taken per shipment from 15 to 30 minutes to just a couple of minutes.
Schedule a demo with us today and feel the difference.
