In this ever-changing and competitive landscape, companies can no longer just “be” global they need to “thrive” globally.
Supply Chain compliance is no longer a process limited to trade professionals but rather an all encompassing effort that crosses many parts of an organization; from Legal, IT, Tax and Finance to logistics. Often times supply chain teams are separated by reporting structure as well as geography, resulting in duplication of efforts and lack of visibility and control. Navigating the entire supply chain is increasing in complexity and often lacks the transparency and automation that tax and trade professionals need to stay compliant.
As companies expand globally, it has become increasingly important they also have the technology and information to comply with transfer pricing rules. In a tax department, technology is used to manage the calculations, reporting and compliance with the requirements for tax reporting. Finding the right data is critical to compliance for both the tax department and the trade staff, with the goal of accurately and timely reporting the correct values to avoid unnecessary and costly audits.
Trade professionals are required to understand the compliance requirements used to facilitate transaction reporting in the supply chain for imports, exports, and re-export; maintain the supply chains flow of goods and support strategic initiatives in the form of Special Programs such as FTAs. With more FTAs coming on stream every year, not using FTAs can mean a major competitive disadvantage for a company. Often times a lack of automation means an overtaxed trade compliance team that does not have time to qualify for FTAs leading to duty payment and ultimately not pursuing savings tied to the duty avoidance available in qualifying under the available FTAs. To take advantage of the cost savings that the many free trade agreements offer, companies need to upgrade technologies and institute new processes.
These challenges and many more, are leading more companies to implement trade and tax automation across their supply chains. Companies that openly embrace new technology and have firm commitments to automate their supply chain functions have a competitive edge over their competition.