Mastering Cross-Border Trade Strategy
When it comes to navigating international business, the sister to supply chain disruption is the cross-border regulatory landscape. The acronyms are growing and so is the requirement for companies to weigh the impacts of these programs on the cost of goods sold (COGS), brand reputation, and operational efficiency when evaluating target markets and supply chain partners.
How can your trade compliance team bring value and attention to the critical cost drivers and potential opportunities available to the business?
Having a strong cross-border trade strategy is key. Focus on these 3 areas, executing on the “why” it’s important to your company’s success in each market:
Every export is an import into your destination market. Publicly available tools such as the EU’s Access2Markets provide an in-depth look at your product landscape as it pertains to trade (e.g., barriers to market, duties, trade agreements, etc.). Learn the ins and outs of doing business in your target market and make sure it fits with your overall business goals and objectives.
Know your supply chain partners. If you are using a 3PL warehouse or forwarder, are they a good fit for your company now, and in the future? Don’t be afraid to “look under the hood” so to speak on the daily operations of an existing relationship. A partnership involves nurturing the business together. Strong relationships involve quarterly business reviews (QBR), key performance indicators (KPI), and innovation/roadmap discussions (e.g., what is coming up that could affect your business or bring value).
Know your competitors and their supply chains. Use publicly available tools such as Import Yeti to better understand the competitive landscape. Discover ways to differentiate, look for programs that if executed correctly become a competitive advantage. Sales is everyone’s job, leverage your industry expertise to bring value to the company with strategic trade initiatives.
Conclusion:
An effective cross-border trade strategy is essential for companies navigating the complexities of international markets. It involves developing a comprehensive approach to manage tariffs, duties, regulatory requirements, and supply chain logistics across multiple jurisdictions. By aligning trade practices with both global and local regulations, businesses can optimize customs clearance, reduce costs, and avoid compliance risks. A well-executed strategy not only ensures seamless movement of goods but also identifies opportunities for preferential trade programs, such as Free Trade Agreements, Foreign Trade Zones and Duty Drawback initiatives. Evolution Trade Solutions LLC. provides a proactive cross-border trade strategy, where companies can enhance market access, improve profitability, and maintain a competitive edge in the ever-evolving global marketplace.
