Build Supply Chain Visibility Through Global Trade and Customs Control Towers
Globalization has spread supply chains across the world, creating complex logistics that make trade visibility essential. Dispersed supply chains add several layers of complexity, with importers and manufacturers contending with extensive regulatory requirements arising from the multiple jurisdictions in which they operate. This greatly increases the risks of non-compliance and operational disruptions.
Frequent supply chain disruptions demand faster responses, but current processes can’t deliver the needed trade visibility, making procedures and documentation even more difficult.
Localized Investments in Technology
To improve efficiency, multinational corporations are investing in technology to automate processes and streamline customs and logistics workflows. Over the years, companies have invested in technology to solve specific supply chain challenges. As a result, their tech stacks are often a mix of different systems and solutions. These tools vary in sophistication, come from multiple vendors, and serve different purposes.
For example, in a country like the US, which is the largest importer in the world, high import volumes and a vast geography push companies to invest in warehouse management systems. These focus on advanced inventory management and real-time monitoring of stock levels. Similarly, in developing countries where customs rules are complex and bureaucracy is heavy, companies often deploy customs clearance software to meet the specific needs of each market.
Fragmented Visibility Can Hurt Your Business
The implication of global supply chains is that within the same multinational organization, different regions are at varying stages of logistical maturity, with supply chain visibility siloed between different systems and business units.
This inevitably results in the organization and its management lacking true global trade visibility, hampering their ability to assess supply chain performance and anticipate disruptions.
Let us illustrate this with an example. Most imports to the US are currently subject to an array of tariffs, depending not just on the product but on the components and country of origin. If the country where the product is manufactured doesn’t have a complete record of the sources of all components, the company will not be in a position to share documents proving the composition or provenance of the products or goods, resulting in potential tariff overpayments and delivery delays.
Relying on multiple data sources and only local visibility leads to fragmented decisions — savings in one area are often canceled out by higher costs elsewhere in the supply chain. This fragmentation makes it difficult to identify opportunities for savings across the supply chain, and hinders the process of monitoring and optimizing them. Ultimately, this impacts the ability to make informed and effective decisions.
Importance of a Single Source of Truth
As successive black swan events, such as the Suez Canal closure, COVID-induced transport restrictions, and trade wars, have impacted international trade, companies have understood the importance of supply chain visibility to mitigate the repercussions of these disruptions.
That said, this understanding is accompanied by the realization that fragmented systems hinder centralized analysis and decision-making, limit supply chain control, and make it difficult to achieve transparency and regulatory compliance. Without a supply chain control tower to provide end-to-end visibility across procurement, production, inventory, and distribution, organizations lack a unified view of their supply chain.
Not possessing real-time global trade visibility can put the organization at a competitive disadvantage vis-à-vis competitors whose systems facilitate holistic supply chain visibility. There is a real cost of relying on disconnected tools that optimize only regional-level operations.
In the American context, an automobile manufacturer who is unable to prove that their auto components were not sourced from countries that are subject to higher tariffs exposes the business to the risk of their final product being subject to a higher tariff rate and potential tariff overpayments.
Conversely, having a unified data layer providing global trade visibility can help businesses improve their market position by eliminating avoidable costs and enhancing the organization’s ability to optimize its cost structure, sourcing decisions, and amount of tariffs paid. A unified system helps companies achieve better and improved results by delivering real time insights, end visibility, and a key competitive advantage. Companies that get the full benefits of supply chain visibility are able to make better decisions, respond faster to disruptions, and ensure regulatory compliance and transparency.
Thus, a well-integrated data system is essential for organizations seeking to achieve end-to-end supply chain visibility, improved efficiency, and sustained competitive advantage.
Global Control Towers for Centralized Supply Chain Management
The need of the hour is a global control tower, a sophisticated and reliable logtech product that empowers management teams to monitor supply chains and centralize associated decision-making. Global control towers serve as a unified trade data repository, providing high-level supply chain visibility without losing track of local regulations and issues. These towers track and monitor every supplier, suppliers, raw materials, raw material, and supplies, ensuring transparency and control over all entities involved in the supply chain.
Global control towers can be deployed globally and then rolled out at the local level, with an adequate degree of customization, thus retaining the local touch without losing sight of the macro perspective. KlearHub connects your entire global network, integrating operations across regions for seamless visibility and coordination.
KlearNow.AI has emerged as the market leader in this field, with KlearHub, its global control tower solution, being the first choice for many multinationals looking to elevate their supply chain to the next level.
For companies moving in this direction, KlearHub brings together trade, logistics, and regulatory data to deliver complete supply chain visibility across your global operations. KlearHub leverages advanced features such as AI and machine learning and analytics to provide predictive insights, optimize processes, and enhance decision-making.
With data ingestion and advanced analytical capabilities, KlearHub provides unparalleled global trade visibility, simplifies managing supply chain activities, and delivers significant cost savings. To understand how global customs towers are revolutionizing supply chains and how KlearHub can benefit your business and your customers, schedule your free demo today.
Frequently Asked Questions (FAQs)
1. Why is visibility in global supply chains so important?
Visibility in global supply chains helps businesses track goods, monitor compliance, and respond to disruptions quickly. Without a clear view across your supply chain, organizations risk delays, higher costs, and compliance issues.
2. How does real-time data improve supply chain operations?
Real-time data gives companies up-to-the-minute information on shipments, customs clearance, and inventory levels. This enables faster decision-making, reduces risks, and ensures smoother supply chain operations.
3. What role does data analytics play in supply chain management?
Data analytics allows companies to process and interpret data across different regions and functions. By turning raw information into actionable insights, businesses can optimize sourcing, cut costs, and improve overall performance.
4. How can companies unify data across their supply chain?
Many organizations struggle with siloed systems. A global control tower helps integrate data across suppliers, logistics partners, and regions, creating a single source of truth that supports efficiency and compliance.
5. How do actionable insights support inventory management?
By consolidating data across your supply chain, companies gain visibility into inventory levels worldwide. Actionable insights from this information help avoid stockouts or overstocking, while keeping supply chain operations resilient.
