How to get buy-in for trade compliance

Trade compliance errors cause significant headaches among international shippers, and they are almost completely preventable. 

With the right training programs, staff can be taught to avoid the problems that interfere with successful international shipments. The trick, according to a panel at IE Canada’s recent annual conference, is convincing the C-suite to invest in that training.

It’s a tough job, but it’s not impossible, according to Farley Genge, Americas regional Customs leader for General Electric Canada Inc. He helped develop a comprehensive trade compliance instruction program that has dramatically reduced the company’s mistakes. The program—which includes an array of new standard operating procedures, risk assessment procedures, audits and metrics—has saved the company more than $10 million.

Before those savings were achieved, however, Genge had to convince his superiors to invest. To do that, he created a sales pitch.

He promised his bosses that the new program would reduce brokerage rates and increase the company’s price competitiveness. It would help the company proactively mitigate penalties and therefore thwart unwanted fines and protect its brand image. And, of course, it would improve cash flow—the costs of training would be more than offset by the savings generated by a compliant workforce.

Strength in numbers

Genge’s co-panellist, Karl Riedl, director of international trade regulations at Robert Bosch LLC, had a slightly different approach. He advised those creating trade compliance programs to get the support of their colleagues in other departments.

“The legal department is one of the first groups you want to talk to,” he said. Since legal professionals tend to be “risk junkies”, Riedl suggested engaging this audience by emphasizing the potential consequences—legal and financial—of poor compliance.

He then recommended talking to the logistics team. Proper trade compliance will minimize the delays associated with Customs, security and all the other hassles that frequently prevent on-time delivery. Once logistics personnel understand this, they tend to support compliance programs 100 percent. “Out of survival, they will fight for you,” Riedl explained.

The next group to win over, Reidl said, is sales and purchasing. A good compliance program will make the costs associated with importing and exporting much more predictable. This will make it easier for both sales and purchasing professionals to determine an accurate total landed cost. “You are the resource they need!”

“Selling” the benefits of compliance programs to other departments can create a critical mass of support, which shows upper management that the initiative is popular and broadly beneficial, he concluded. “If you can accomplish what you promise, you will become a strategic part of the company."

For more coverage of the IE Canada conference, click here.