Understanding and adhering to the complexities of supply chain compliance is a task that can seem daunting, particularly when the landscape of regulations is dynamic and ever-evolving. That's where the expertise and services of a trusted partner come into play.
As a top freight forwarding company, ASF is here to help. Founded in 1999 with a commitment to bringing honor to the freight forwarding market, we have grown to become a leader in global logistics. Our partnership ensures that the complex web of global supply chain operations stays compliant with international trade laws, industry standards, and best practices, offering the most efficient, effective, and reliable shipping solutions to your company.
In this post, we will navigate the ins and outs of supply chain compliance, examining the essential regulatory requirements, how to establish an effective compliance program, and how ASF can help manufacturers meet these compliance requirements.
Understanding Supply Chain Compliance
The supply chain is a series of links that connect the journey of a product, from the sourcing of raw materials to the delivery of the final product to the end consumer. In a globalized world, this chain stretches across international borders, navigating through a labyrinth of laws, regulations, and standards.
Compliance, in the context of a supply chain, involves meeting the legal requirements imposed by countries where the supply chain operates, adhering to industry standards, and respecting human rights. The ultimate goal is to create a safe, transparent, and ethical system where goods can flow smoothly from one link to another.
A key aspect of supply chain compliance is understanding the complex regulatory environment. In the United States, for instance, there are regulations enforced by the Securities and Exchange Commission (SEC). The European Union, on the other hand, has its own set of rules defined by the European Commission, which includes regulations around product safety, environmental protection, and adherence to human rights standards.
Beyond country-specific regulations, manufacturers must also adhere to international standards such as ISO 9001 and ISO 14001, which focus on quality management and environmental management, respectively. Furthermore, there are industry-specific standards that may apply, depending on the nature of the products or services. Global initiatives like the United Nations Global Compact also push organizations to align strategies and operations with universal principles on human rights, labor, environment, and anti-corruption.
The Components of an Effective Supply Chain Compliance Program
An effective supply chain compliance program is a multifaceted approach that goes beyond merely meeting the bare minimum of regulatory requirements.
- Risk Management focuses on identifying, assessing, and mitigating risks associated with the supply chain. Compliance risk can arise from a multitude of sources, such as changes in regulation, new supplier onboarding, or geopolitical shifts. Another area of potential risk is damage to or loss of goods during transportation, which could have serious financial implications. Once identified, these risks should be evaluated based on their potential impact and the likelihood of occurrence. Following the evaluation, mitigation strategies, like cargo insurance, are formulated and implemented to minimize the impact of these risks on the supply chain.
- Supplier performance directly influences supply chain compliance. An evaluation system needs to be put in place to regularly review suppliers on various factors, including their adherence to compliance requirements, quality of raw materials provided, delivery times, and overall reliability. This will allow you to keep your supply chain operations in check and swiftly address any deviations before they escalate into more significant problems.
- Compliance management systems form the backbone of a compliance program. The objective is to streamline and automate compliance processes as much as possible, thus reducing the likelihood of human error. An effective compliance management system includes tools for document management, audit trails, and report generation. A key feature is the ability to generate product identifiers and other detailed information necessary for compliance with various regulations. With the right technology, you gain visibility at the pre-shipment, in-transit, and post-delivery levels.
- As previously mentioned, supply chains often span across multiple countries, each with its unique set of regulations. Therefore, it is vital to understand and stay updated with the regulations related to supply chain operations in all relevant jurisdictions. This is where the expertise, relationships, and adaptability of a freight forwarding company are vital.
Combining these components into an effective supply chain compliance program might sound like an intricate puzzle. However, with the right partner, this puzzle can be solved more easily than you think.
The ASF Approach to Supply Chain Compliance
In the realm of global logistics, ASF Global Logistics has carved out a unique and important category as the "Human standard." Here's how we approach and assist in the challenge of supply chain compliance.
At ASF, we hold relationships with nine of the world's largest ocean carriers, allowing us to offer global coverage and a wide range of shipping solutions.
Contract Management
Through experienced and personalized contract management, we manage, maintain, and optimize carrier contracts, performance ratings, and freight costs, ensuring that every operation aligns with the regulatory requirements of the countries they operate in. We also provide comprehensive cargo insurance, offering custom coverage that protects profits and reduces compliance risk.
ASF Technology
Utilizing ASF technology as an enabler, we enhance our operations without compromising on the human touch. Our technology harnesses software solutions for supply chain risk management, supplier performance evaluation, and compliance management system. These technological tools augment our business processes, allowing us to provide detailed information for regulatory compliance, understand the latest regulations, and meet our due diligence obligations effectively.
Custom Brokerage
Navigating the complex landscape of customs is a crucial part of what we do at ASF, specializing in customs clearance and managing all necessary paperwork with accurate and complete documentation to meet unique regulations. Our connections with customs agencies and our extensive knowledge of the latest regulations ensure a smooth and compliant customs process for our clients.
Cargo Insurance
At ASF, we understand the importance of protecting your investment. We offer custom coverage tailored to the unique needs of our clients. Our team will carefully assess your shipping plan to determine the best option for cargo insurance, providing simple and transparent plans that align with your needs.
Ocean Freight Services
ASF's ocean freight services embody the integrity and high standards our brand is known for. We provide extensive global coverage that caters to the unique needs of our clients. Whether it's a full container load (FCL) or a less-than-container load (LCL), we manage both imports and exports with precision, ensuring that the goods reach their destination in the most efficient and cost-effective manner.
Land Services
Transport your cargo with ease. Our land transport services offer flexible and cost-effective solutions. We focus on both Full Truck Load (FTL) and Less Than Truck Load (LTL) options to meet the diverse needs of our customers. With efficient transloading, trucking, and railing you can ensure seamless connections between different modes of transportation.
Air Freight
Recognizing the time-sensitive nature of some shipments, our air freight solutions prioritize access and speed without compromising reliability. Whether it's moving essential medical supplies or other urgent goods, customers can trust ASF to handle their air freight with the highest level of integrity and care.
Contact Us For Custom Supply Chain Solutions!
We recognize the importance of supply chain transparency in freight forwarding and supply chain management. Our willingness to discuss industry and market trends and proactively address changes offers the most personalized and effective solutions. Through this open communication, we can help their partners navigate the complexities of shipping and compliance.
Contact the ASF team to talk about your current logistics program and experience a more personalized, proactive, and compliant approach today.
Meet Our Expert
This article is reviewed by Jeffrey D. Plumley, Chief Commercial Officer and Licensed US Customs House Broker.
Jeff has an extensive background in global logistics, spanning various freight forwarding executive management positions. As a Licensed US Customs House Broker, he has managed regulatory compliance and is a worldwide expert in Flexitank transportation logistics.
In addition to his strong forwarding and Flexitank background, Jeff was also Head of Regulatory Compliance and Sales for a major global logistics software provider. He has over 30 years of logistics experience and a strong leadership background having graduated from the Citadel.
