International trade is exposed to various security and compliance challenges and risks that can impact the smooth operation of global trade operations. However, with SAP Global Trade Services (SAP GTS), you can mitigate these risks, ensure security and compliance, and minimize disruptions.
Achieving global trade security has always been crucial due to its significant impact on economic stability, national security, and international cooperation. Government policies are increasingly prioritizing national security alongside economic development, resulting in a closer integration of supply chain and security strategies.
But what’s in it for international businesses?
Enhancing the security of global trade operations offers international businesses economic stability, improved competitiveness, risk mitigation, operational efficiency, and strategic advantages. These benefits collectively contribute to the long-term success and growth of businesses operating in the global market.
Global trade operations are always exposed to various threats such as terrorism, smuggling, fraud, and cyberattacks, which can disrupt trade flows and economic activities. Recent incidents like the CrowdStrike-Microsoft outage in July 2024 underscore the vulnerability of the global digital infrastructure. The outage led to communication breakdowns, data processing and transportation delays, and digital transaction interruptions—all of which are crucial for the smooth functioning of global trade operations.
BlackBerry’s “The State of Software Supply Chain Security” 2024 research reveals that attacks can severely impact businesses. The majority of surveyed organizations said that it resulted in significant financial loss (64%), data loss (59%), reputational damage (58%), and operational impact (55%).
Despite the inevitability of threats and attacks, being proactive is crucial. Enhancing visibility into global operations using SAP GTS allows businesses to anticipate and mitigate risks more effectively, ensuring smoother and more secure trade processes.
Achieving and maintaining global trade security involves implementing comprehensive strategies that encompass compliance, risk management, visibility, and collaboration. Here are global trade security best practices to ensure robust global trade security:
Establish comprehensive protocols covering all aspects of transactions, including customers, vendors, and intermediaries. Ensure thorough compliance checks across the supply chain and continuously screen transactions against updated restricted party lists, ensuring real-time compliance and reducing manual intervention.
Accurately classify products according to international standards and harmonized system codes. Utilize automated tools to assist with product classification, reducing the risk of human error and ensuring consistency.
Streamline customs declaration processes through automation, reducing manual errors and speeding up clearance times. Facilitate seamless communication with customs authorities through Electronic Data Interchange (EDI), ensuring compliance with regulatory requirements.
Accurately determine the origin of goods based on trade agreement rules to qualify for preferential tariffs and ensure compliance. Automate supplier declarations and Certificates of Origin (COs). Streamline the collection and management of necessary documentation to maintain accurate records and ensure compliance.
Promote a security-first culture. Encourage a culture of security within the organization, emphasizing the importance of trade security and proactive reporting of potential issues.
By adopting these global security best practices, businesses can significantly enhance their global trade security. SAP GTS empowers companies to implement these best practices effectively.
SAP GTS is a comprehensive international trade solution designed to help businesses manage trade operations efficiently and securely. It automates and streamlines global trade processes, ensuring global trade security while optimizing supply chain operations.
SAP GTS offers the following capabilities that international businesses can leverage to enhance the visibility and resilience of their global trade operations. These features include:
Automated Restricted Party Screening: Simplifies the screening of transactions against various international sanctioned party lists, allowing for real-time compliance checks.
Export and Import Management: Includes product classification, export license management, import permit management, and handling customs declarations.
Customs Management: Automates customs procedures, including self-filing and broker communication, and handles special customs procedures such as foreign trade zones, bonded warehousing, and processing trade in specific countries.
Trade Preference Management: Allows businesses to automate the process of determining and applying preferential trade agreements and reduce tariffs and duties on imported and exported goods.
These SAP GTS features collectively help businesses manage their global trade operations securely, efficiently, and in compliance with international regulations. A global chemical manufacturing company, for one, implemented an enhanced SAP GTS Trade Preference module and significantly improved its trade processes, security, and compliance. A leading HVAC products manufacturer, on the other hand, leveraged SAP GTS to control data quality and compliance of import entry filings.
SAP GTS is globally trusted for its robust functionality and proven reliability. However, its true effectiveness hinges on meticulous implementation, continuous enhancement, and seamless integration into the organization's core trade operations.
Seeking help from experts in its implementation is crucial. Specialists like Ropaar can ensure that the system is configured correctly, integrated smoothly with existing IT infrastructure, and tailored to meet the specific needs of the business.
To thrive in today’s highly competitive and volatile market, global businesses must ensure their trade security initiatives are foolproof. By effectively integrating SAP GTS into their global trade operations, international companies can proactively mitigate security risks, withstand disruptions, and even contribute to national security initiatives.
To explore how SAP GTS can enhance your global trade operations and ensure a successful implementation, contact Ropaar today.