what to look for in trade solutions software · solutions software august 9th, 2016 tom kuerbs...
TRANSCRIPT
What to Look for in Trade
Solutions Software
August 9th, 2016
Tom Kuerbs
Descartes Systems Group
Ron Barone
Director, Technology SmartBorder
What to Look for in Trade Solutions
Software
• Rarely do two Brokers/Forwarders have
the same exact needs.
• One size does not fit all.
• What are my anticipated needs? • Today?
• Next Year?
• Five Years?
Consider your requirements
• SAAS/Cloud vs Deployed on-site.
• Do you prefer one provider for all needs (Forwarding, Customs, Accounting, Security Filings, Connectivity to Carriers and other Supply Chain Partners)?
• What interfaces will I need with external software?
• What visibility do you need to offer your clients to their shipment data on the web?
• Budget
What to look for in selecting a
Vendor • Industry Leadership, Domain expertise
• What technical support is available? Where is the support and development located?
• Does the vendor offer in house implementation management or will you need to hire outside consultants?
• Worldwide Regulatory / Security filing options?
• Global Trade Content
• Integration and Development - Ease of integration is an important factor to consider when making technology purchasing decisions
• Will the software meet my growing needs?
Gathering information about a
prospective software vendor.
• RFI (Request for Information) is a standard business process whose purpose is to collect written information about the capabilities of various suppliers. Normally it follows a format that can be used for comparative purposes of multiple vendors.
• Talk to other successful competitors. What do they like/dislike about their software solutions.
• Demonstrations of software capabilities
• Pricing Model(s).
• Most want to have more value-added services
• Most view global presence as important
• Many see shipper/consignee visibility as important
Competitor Capability You
Wish You Had
What to Look for in Trade Solutions
Software: The Value Add Trends
• Shipment Management – Why: Enable you to better serve your customers
• Security Filings – Why: Keep you and your customers compliant. Keeps the freight moving
• Custom Filings – Why: Keeping you current with all regulatory requirements
• Global Trade Content – Why: To better demonstrate reasonable care and classification determinations
• Carrier/Trading Partner Connectivity – Why: To provide better visibility, improve efficiency and meet industry initiatives
• Automation in the Supply Chain. – Why: Streamline the process, reduce costs
Trading Partner
Connectivity
Denied Party
Screening
Customs and PGA
Clearance
Global
Security Filings
Classification
& Valuation
Recordkeeping
& Audit Trails
What Does Compliance Mean to You?
Key Trends and Statistics in Global Trade & Compliance
50% of
global
trade
takes place within global
value chains
Exports are
doubling every
10 years
1995 2005 2015
5.2 trillion
10.5 trillion
19.0 trillion
48%
Cross-border
eCommerce trade
2011-2015
8+ Supply
chain
parties
coordinate each
shipment, adding
complexity
88%
of executives say that
managing regulatory
change is challenging
Many global trade
regulations are
increasing and
going into force
• ACE is the largest concern for all US based forwarders and brokers but less so for top
performers
• Top performers see trade agreements and electronic data as other significant change
areas
• Others see Canadian and US export manifest as significant change areas
Industry Changes
• Top performers are more focused on high value services to increase margins
• Top performers see automation as critical in improving margins by offering time
saving services to customers
• Bottom performers see cost cutting and price increases as primary ways to increase
margins
Important Tactics to Improve Margins
• Trade content integration – Harmonized Tariff Schedule (HTS) Codes
– Trade agreement details
• Restricted parties screening – Scan throughout the process
• Booking, execution, settlement
– Automated or ad-hoc
– Centralized notifications for “positive” hits
Trade Content / Restricted
Party Screening
– Air Messaging • Participation in eAWB initiatives reduces costs in many
cases
• Automates delivery of status updates for tracking
• Reporting tools for exceptions
• Single connection to multiple carriers
– Ocean Messaging • It’s more about getting the best rates
• Delivery of electronic statuses for tracking
• Single connection to multiple carriers
• Compliance with VGM (SOLAS) rules
Messaging
More and more Forwarders
are offering Enhanced Door-
to-Door Service
• Optimization helps choose carriers based on lowest cost, service parameters and route guides
• Execution moves a traditionally manual process (phone, fax, email) into a message driven process for load tendering, responses, status messages and invoices
• Benefits – Improved metrics on business performance
– Freight management centralization
– Low-tech carrier enablement for 100% compliance
– Improved tracking of freight
– Enhanced control over your distributed business
What to Look for: First and Last
Mile Optimization and Execution
What to Look for: The ability to keep
pace with global changes
Countries with Security Filings Underway – All eyes are on China!!
Tom Kuerbs, LCHB, CCS
CHB System Manager
Phone: (800)419-8495 x458214
Email: [email protected]
Twitter: @CBPWarrior
Website: www.descartes.com
Thank You!
Presentation Overview
• The Cost of Support
• Your Business Needs
• Customization
The Importance of Support
You can lower your cost of operations and
improve on customer retention with a good
support plan from your software vendor.
Who here is a first time filer?
The Cost of Support
Overview
• Service Outages
• Support Capabilities
• Red Tape
Management
The Cost of Support
Service Outages
• Hardware and/or software of
the provider (on-premises or
off)
• Data loss and recovery plans
• Government outages
The Cost of Support
Support Capabilities
• Guaranteed response time
• 24 / 7 support options
• Customer references
The Cost of Support
Red Tape • Rapport with agency
contacts
• New brokers
– Testing assistance
– Application
• Technical support on
system setup integration
The Cost of Support
Having premium support can reduce your
overall operational costs and limit your risk
of day-to-day operations.
Your Business
Does your prospective vendor
truly understand you?
If not, how make sure they do.
Your Business
Overview
• Vendor Discussion
• Vendor Intelligence
• How to Validate Vendor
Understanding
Your Business
Vendor Discussion
• Air, sea, border,
exporter, forwarder
• Vertical specialization?
• Other supporting
systems?
Your Business
Vendor Intelligence
• Interface intelligence
(does it make sense)
• Cost of employee
onboarding / transition
• Support for common
scenarios
Your Business
Vendor Support Validation
• Support staff interviews
• Create a few problems
• Test their support
capability
Your Business
Good vendors will support you by
understanding your business
needs and verticals.
Who finds it critically
important to have an
integrated freight forwarding
system?
Customization
Can your vendor change to meet
your business needs?
Customization
Overview
• Growth and Change
• For Your Customers
• Upgrades
Customization
Growth and Change
• System / workflow
adjustments
• Programmed
customizations
• Interview other clients
that are highly
customized!
Customization
For Your Customer
• Online tools
• Data import and mapping
• Support options
Customization
Upgrades
• Product roadmaps
• Software upgrades
• Ask the references!!!
Customization
Core business software isn’t one
size fits all. Customization, and
support of those changes, is
required for small and large
businesses alike.
The Importance of Support
The support of any core business
software system is critical to the
retention of customers.
Who here is interested in free
online (mobile) tools like
Tariff and RPS?
Thank you!
Ron Barone
Director, Technology
Phone: (800) 572-2734
Email: [email protected]
Twitter: @SmartBorderABI
Website: www.smartborder.com
Questions