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Lean Manufacturing, Basics, Principles, Techniques
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STRATEGIC ALLIANCES Many companies today form a strategic alliance with other businesses that have core competencies in a given area. Many companies rely on freight forwarders to handle export requirements such as license screening, shippers letter of instruction, the commercial invoice, and customs clearance documents. These companies' expertise resides in the logistics of delivering product from your factories to the customer. In many cases these companies will manage your distribution centers. They can often provide the most efficient methods of transportation to meet your customer service requirements. This allows the organization to focus on its core competencies, enhancing your market position. Another area for alliance would be the operational support outsourcing. Staffing requirements to support today's technology can become a monumental management task within itself. Companies may chose to maintain minimal staffing levels in the selected outsourcing areas, turning over the major support activities to a vendor whose subject-matter expertise is in the selected technology being implemented. AUTOMATED EXPORT COMPLIANCE SYSTEMS Companies should know the applicable U.S. export compliance rules and comply with them. Depending on the type of goods, technology, or services being exported and the countries of destination, your company will almost always be subject to a wide range of U.S. rules and regulations. These may include the Export Administration Regulations, the International Traffic in Arms Regulations, the Foreign Assets Control Regulations, the Food and Drug Administration and Environmental Protection Agency export restrictions, the Anti-boycott Compliance Regulations, the Foreign Corrupt Practices Act, and antitrust restrictions. Because of the complexity and subtlety of the application of these laws, advice should be sought from experienced legal counsel with respect to a particular transaction. Violations of export controls are punishable by serious civil and criminal penalties, including the denial of all export privileges and debarment from U.S. government contracts. The Department of Commerce maintains, and revises on a regular basis, the Table of Denial Orders, which is a list of persons who have had their exporting privileges denied. It is essential that, before making an export, both the Table of Denial Orders and the list of Specially Designated Nationals be examined to make sure that you are not dealing with a prohibited person. The Department of Commerce also publishes a list of "red flags" to put exporters on notice that they may be involved in a violation of U.S export controls. It is important to keep in mind that your company may be liable if you deliberately ignore the red flags and proceed with a transaction that results in a violation. It may be advisable to contact the Department of Commerce's Office of Export Enforcement to check out a particular foreign customer in advance. From this discussion, you may imagine the levels of complexity that could be introduced to your business attempting to ship product to the customer. Today technology is available to provide sophisticated automation tools for the international trade community. Listed below are some of the key areas for consideration when establishing your company export import policies.
CONCLUSION Technology today offers companies a vast number of application solutions to help your business meet its strategic objectives. The life cycle for systems to meet these solutions is decreasing. Companies are using best of breed solutions to attempt to gain that competitive advantage. E-commerce is rapidly changing the way the exchange of goods and services are transacted. We must take the core structures of the back office systems and utilize Web-enabled tools to take a holistic approach to optimize the global enterprise. STAY CONNECTED To stay current on Lean Management Basics and Best Practices, subscribe to our weekly MBBP Bulletin... and we'll send you our PowerPoint presentation, "Introduction to Kaizen Based Lean Manufacturing™." All at no cost of course.
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