Question

A Customs Brokerage (ACB) is a high-volume third-party logistics provider (3PL), Non-Vessel Operating Common Carrier (NVOCC), and international freight forwarder that provides full-scale logistics services including end-to-end import and export forwarding, customs brokerage, direct consolidation services, local and national trucking, insurance and ware-housing. Services range from local delivery to large-scale multimodal project cargo. The company also maintains a fleet of trucks through its subsidiary Mantra Trucking, Inc. and through its network of carriers, transports and distributes Full Container Load (FCL) and Less-than-Container Load (LCL) shipments to some of the largest importers and exporters in the Americas. Challenge A Customs Brokerage was approaching a critical threshold that required added automation in its operations. According to Gabriel Rodriguez, President at A Customs Brokerage, “We have seen a consistent growth trend year-over-year, even reaching a double-digit growth rate throughout the economic downturn. The business was reaching a stage where additional automation and systems integration were needed in order to maintain the highest caliber of customer service”. Mr. Rodriguez adds, “However, the number of technology providers we were using seemed to increase in parallel to our business growth. This meant that in order to effectively track and clear a shipment, a representative would need to switch to different technology systems and various methods of record keeping. The constant shift of context and focus was ineffective.” As a result of the numerous technology systems in use, ACB was experiencing a fragmented view of logistics visibility and higher IT maintenance costs. He continues, “The multi-vendor, multi-process system was not working for us. We began to look for a higher level of service offering when we were unable to achieve our goals using existing solutions.” Inefficient Usage Effective Usage When searching for a new logistics technology platform, A Customs Brokerage contacted a number of logistics technology providers. After a thorough evaluation process, ACB selected Descartes to manage its international freight forwarding, customs house brokerage, security filing and accounting functions using options within the Descartes OneView T M For-warder Enterprise and Descartes OneViewTM CHB solutions. Descartes’ implementation team fully trained the staff to ensure a successful rollout, “Having used a number of logistics technology solutions, I have seen first-hand the degree of outstanding services and domain expertise shown by Des-cartes,” he continues, “The expertise of Descartes on-boarding and technology support teams is world class. The support Is local, and the implementation team has shown a long-term commitment to the success of our business”. Shifting the Bell Curve A Customs Brokerage also noted that its business model is one of its largest competitive differentiators. “We can handle any size shipment and have an enormous variety of clientele. ACB has seen the greatest success by serving mid-size clients simply because they comprise the majority of importers and exporters in the industry. However there are still so many business opportunities out there.” “We have seen a 25% increase in volume since implementing Descartes ’technology. Descartes currently manages 95% of our business operations, the technology and automation offered by Descartes helped us not just increase the volume of customers but gave us an opportunity to grow our range of service offerings. This has helped drive our business to a higher level of operational efficiency and added to our mission of being a cargo concierge”. “Throughout our 8-year relationship with Descartes, we have doubled our customs-bonded warehouse operations from a 25,000 sq ft building into a 50,000 sq ft location. There is so much potential we can tap into with Descartes and this is a direct correlation to the level of customer service we are able to offer our client base.” Descartes solutions have helped A Customs Brokerage increase its volume of customers and range of service offerings. Challenge Having undergone significant growth, A Customs Brokerage, a high-volume international freight forwarder, 3PL and customs broker, needed an integrated platform with localized support. The technology required should help jumpstart growth and help ACB expand into new service offerings. It should also better address their needs for more flexible reference and reporting tools and offer end-to-end visibility. The Solution Descartes OneView™ Forwarder Enterprise and Descartes OneView™ CHB solutions enabled ACB to consolidate processes, effectively perform financial analysis and manage import, export and customs brokerage procedures from a single platform. Benefits • 25% increase in volume since implementing Descartes technology • 15% productivity gains and labor savings through automation • Helped provide a foundation to move from a 25,000 sq ft into a 50,000 sq ft location • Increased real-time visibility and reporting accuracy • Added compliance validations and standardized customs functions • Improved employee and customer satisfaction • Offered a platform for continued future growth • Increased business continuity • Improved operational efficiencies.

Question 1. What are the main issues that the company is currently facing? Why? (Please include assumptions and references where applicable)

Answer 1

Some important challenges faced by the company are :

1) Company was facing a custom brokerage to be given for successful operations. It will place extra burden to the operational expenses to the organization.

2) The growing business is seeking added automation and integration of supply chain activities.

3) As a result of the numerous technology systems in use, ACB was experiencing a fragmented view of logistics visibility and higher IT maintenance costs. It is one of the big challenges.  

4)It should also better address their needs for more flexible reference and reporting tools and offer end-to-end visibility.