CSCB Report
Get Your Customs Broker Off The Bench And Into The Game
When was the last time you talked to your customs broker about your business plans, objectives, challenges and opportunities? If your answer is “never” – and you are wondering why you would ever do such a thing – then read on.
In Co-opetition, management experts Adam Brandenberger and Barry Nalebuff suggest that a good game strategy for business is to stop playing the game for a moment, and take a look at the players. Your core team is made up of immediate colleagues and co-workers. But there are many more players in the game. You have customers – there’s no game at all unless they are willing to play. You have suppliers, distributors, marketers, accountants, competitors, government regulators, industry associations, and a whole host of professional service providers. And you have your customs broker.
The mistake many companies make, according to Brandenberger and Nalebuff, is to see the role of each player as predefined. The secret is to expand your vision, and try redefining roles – to see if each player can bring more value to the game.
How could you apply this strategy to the role of your customs broker?
Traditionally, we assign brokers a limited but critical role in that part of the importing game: They get stuff through customs. Even small businesses turn to brokers for this role. According to a recent Revenue Canada survey, nine out of ten small businesses rely on customs brokers to clear shipments.
The value that a broker brings is pretty clear. First, there is the value of convenience. Clearing goods through customs can be a complicated, time-consuming task. Either you spend the time and energy on that task yourself, or you hire a broker licensed by Revenue Canada to do it for you. For most companies, the choice is simple.
Second, there is the value of peace of mind. You want your shipment cleared as fast as possible, at the lowest possible cost. But making a mistake can lead to delays that lose you customers, unexpected reassessments by Revenue Canada andcostly penalties. Avoiding those mistakes requires a detailed, insider’s knowledge of customs rules and procedures.
Third, there is the value of efficiency. To play your game well, you concentrate on what you are in business for. Clearing goods through the complex customs environment is an issue best left to a specialist. In addition, there are streamlined clearance options available only to those who have established a solid, long-term relationship with Canada Customs.
So in their traditional role, brokers bring a lot of value to your business. But what happens if we redefine that traditional role – getting stuff through customs – in terms of the flow of information?
Every time you move goods through customs, your broker pulls together reams of critical business data – about everything from country of origin and destination, to suppliers, tariff classifications, routings, and intended use. The broker passes that information to the government and the shipment clears. Traditionally, this defines the broker’s job.
But think again. In terms of the flow of information, your broker represents a critical nexus of data, tapping into streams of information linking all aspects of your business operations, suppliers, logistics, markets, inventory management, accounting and financial controls. If you think of your broker as a knowledge manager, you can exploit that data in new ways – leveraging that information into strategic business intelligence.
That is exactly what many companies are doing. They are calling on brokers to play new roles – to help develop new product lines, explore new markets, evaluate the impact of global change and cut costs. Brokers can offer a complete interface linking your information systems to those of your customers, vendors, carriers, warehouse facilities and government. That interface makes a unique, total logistics solution available, with the ability to track and trace shipments, produce detailed management reports on demand, and give rapid access to the kind of strategic information you need to run your business efficiently.
Brokers can also provide advice on international trends, statistical trade profiles, and changing trade policies around the globe. They can help you set up and manage state-of-the-art information management systems linked into the global networks of electronic commerce. They can help you deal with export restrictions, obtain letters of credit, meet complex insurance requirements, and stay on top of changes through in-house training and seminars.
The broker’s integrative expertise is especially important as Revenue Canada considers the implementation of a new compliance regime. The government is calling on importers to develop a business-wide focus on compliance, with systems that link sourcing practices, markets, total landing practices – virtually every aspect of your business operations.
Of course, brokers still play their traditional roles. But to get top value from your broker today you need to ask your broker to bring more to the table. Talk to your broker about your business needs and learn how your broker can add new competitive advantages to your game plan.