Insights

Richard Dayman

Supply Chain Consultant, Bluefin Solutions

SAP GTS - how to take the pain out of exporting and importing

• Do you trade globally on the Internet or by more traditional routes?
• Do you have delays in importing raw materials or products from abroad?
• Are you becoming increasingly affected and influenced by foreign trade?

Anyone who exports or imports knows that cross-border transactions are becoming more complex, involving more exposure to increasing external regulations and an increasing amount of paperwork and filing…..and just to make it interesting organisations are facing internal pressures to reduce their supply chain costs,  increase speed and efficiency to market and improve their cash flows. 

Visibility of accurate, real-time export and import data is essential to addressing these dual challenges.

Failure to do so can result in severe regulatory penalties and impact brand value and customer-retention levels. The internet has allowed Governments and Authorities to quickly modernise their information capture and they are implementing better tools to monitor the movement of goods between Countries.

In the UK understanding the new Customs and Excise requirements for automated filing, some of which come into force from January 2011, can be a challenge and will mean that companies will need SAP’s Global Trade Services module (GTS) or a similar solution to manage input to the Excise Movement and Control System(EMCS) declarations.

The EMCS website confirms that:

• Functional stage 1: no later than 31 December 2010, all Member States are required to provide a system to handle the submission and discharge of movements electronically.
• Functional stage 2: by 1 July 2011, all Member States are required to deliver all of the remaining functionality as detailed in the Functional Excise System Specification.

Processes and systems will be required to support worldwide import and export trade processes, as well as operations within specific regional trade areas. This is a great opportunity to automate administrative tasks, freeing up shipping and receiving departments to concentrate on moving products quickly.

Using SAP’s Global Trade Services GTS, supply chains can be optimised to quickly respond to demand, while facilitating innovation and collaboration in support of growth and the bottom line. 

GTS brings all of the ERP’s processing components together under one single “ cockpit” transaction.

Built on the SAP NetWeaver platform, GTS allows you to integrate applications, data, and business partner information across the entire global trade process, enabling you to leverage existing IT investments and eliminating the need for new and costly interfaces.

The GTS components are grouped into the 4 following control areas

 
You can deliver 3 clear business benefits by using GTS

1. Avoid the risk of non-compliance: In the UK SAP have worked closely with HMRC on requirements and design so it complies with requirements. GTS is fully integrated with your R/3 ERP systems so you reduce the risk of manual errors in Master data for example Vendors, Customers and Products and avoid inaccuracies in any associated reporting.
2. Centralise and integrate your processes: It makes sense to centralise your import & export data and the order-to-cash processes by centralising onto one single integrated platform. This can reduce costs and the resources required with maintaining multiple interface systems.
3. Accelerate your cross-border movements: With GTS you can automate your filings directly from SAP to the authorities. You can avoid those critical supply problems and supply chain costs by minimising the risk of costly inbound blockages or delays in product movements.

Summary

Because GTS is already completely integrated with your existing SAP system and can be easily integrated with your partners’ systems, you instantly have complete visibility and can control of Products, Customers, Vendors and orders that you Export and Import in one single SAP view.

At last you have the power to automate those tiresome manual activities while at the same time ensuring you are complying with the fast-changing legal requirements in Foreign Trade.