Implementing 10+2 may be a costly hassle for many importers, but for many it will reveal data about their supply chains that until now had been beyond their reach. For example, the requirement that the factory be included on the 10+2/ISF filing means that the importer will always know, assuming it obtains accurate data, which factories are making its merchandise at any given time and which service providers it is using for transportation. John Motley, the CEO of Log-Net, sees a lot of opportunity here. For example, knowing where a factory is located, an importer might decide as part of a green initiative to use the closest port rather than one further away that is chosen by a carrier or intermediary. I asked John to elaborate on comments he made on this subject on the recent webcast held as part of the JoC 10+2 Virtual Trade Show (accessible here: https://vts.inxpo.com/scripts/InXpo.nxp?LASCmd=AI:4;F:QS!10100&ShowKey=1320)
Here are excerpts of he said: Several importers though are taking a deeper look at the requirements and looking at how they can better operate their international supply chains. Their feeling is that the information is after all forensic data so why not take advantage of it? Some broad areas of utilization that immediately come to mind include;
COMPLIANCE: Great data to verify if the parties you think are moving your freight are the ones. If the parties involved are not those expected there could be security impacts, cost or value impacts. The quality of product or service may not be what the importer expected. For C-TPAT parties, if the factory or consolidator is not the party that the importer, or Customs, evaluated it could expose the importer to the loss of their C-TPAT status or tier. One importer will be charging a significant chargeback penalty for suppliers that utilize trading partners outside the importers C-TPAT network.
SUSTAINABILITY AND GREEN INITIATIVES Many clients are wrestling with the proper address requirements down to the postal code introduced as part of the ISF requirements. Many importers are taking months to clean this information up and add all of the required components. However, not only will Customs have Googlesque locatability of the trading partners, so will the importer. One importer is looking at their green initiatives to determine what the nearest port is from a factory and subsequently look at how often they pass that port potentially increasing carbon emissions, the number of trucks on the roads overseas and the potential cost of drayage.