During tough economic times with layoffs, downsizing and budget cuts, companies look for ways to save money and deliver results more efficiently. Like other aspects of your business, you might be in a position where you need to find ways to cut costs while maintaining a high level of standards for your import and export compliance programs.
While you can cut marketing efforts, trade compliance is a legal requirement and not something you can shortcut. Instead of putting the company at risk during a recession, many companies are turning to trade compliance outsourcing solutions to protect their business and boost their bottom line.
As your business adapts to the new economic environment, the good news is that you can outsource trade compliance to ensure the longevity of your business and help keep jobs. Now is the ideal time to think about how outsourcing trade compliance can save you both time and resources, freeing up your much-needed personnel for the tasks they were hired to do.
3 Ways Your Business Benefits with Professional Trade Compliance Outsourcing
Outsourcing trade compliance has many benefits, making it the right choice for many, even in financially challenging times. Outsourcing allows you to leverage expertise, free up much-needed resources, and can save you money in the long term. Let’s take a look at the top 3 ways your business can weather a recession while protecting your business with professional trade compliance outsource services.
1. Trade Compliance Companies Have the Expertise That You Need
Having the right skillset is critical when it comes to trade compliance. Finding someone with the exact skills required is not only challenging but also costly.
In an effort to reduce budget, companies often add on trade compliance to other functions such as sales, legal, or logistics. However, it becomes apparent quickly that learning trade compliance takes time and experience- taking away critical employees from the role they were hired to do.
As a result, one person wears too many hats and is unable to juggle it all — increasing turnover within the company. Having a team of trade compliance professionals solves these issues for you.
A dedicated expert for all of your trade compliance needs frees up staff to focus on the skills and talents they were hired for. Our trade consultants have years of experience and a passion for navigating the complex world of trade compliance. They keep up-to-date on the latest regulations and changes and pass this information onto you giving you immediate access to the most current information and eliminating a large time commitment for other staff.
When you work with an outsourcing firm like Export Solutions, you also get the full power of the team – a group of people with combined expertise and knowledge that is hard to match with internal resources at most companies.
2. Trade Compliance Outsourcing Improves Operational Efficiencies
Trade compliance isn’t just about getting shipments out the door, but to be effective must include a program with recordkeeping, processes, and audits in order to be fully compliant. This takes time to implement and maintain- a task difficult for someone with multiple other responsibilities or with no expertise.
Outsourcing trade compliance provides a dedicated resource ready to assist when needed -whether this be a fully dedicated resource or someone needed to help with occasional shipments.
A trade compliance consultant can quickly and easily answer questions and solve issues that would take a novice precious time to research and interpret. It keeps employees focused on their daily tasks and on the strategic goals of the company while someone else takes care of the trade compliance piece.
In addition, companies can leverage the tools used by a trade compliance company such as restricted party screening tools, access to trade subscription websites, and in-house expertise.
3. Protect Your Business from Costly Fines & Penalties
Outsourcing trade compliance saves money in the long run by reducing your risk of costly fines and penalties and minimizing your overhead costs.
The cost of non-compliance is high and can have lasting economic effects in the form of debarment, fines, and bad publicity. These costs are much higher than the costs associated with outsourcing trade compliance. Trade professionals understand the regulatory risks and requirements. They know what it takes to be compliant and avoid penalties.
Outsourcing trade compliance also saves money by helping companies take advantage of cost saving programs available. These include duty drawback and other specialized trade programs that many companies are unaware of and not utilizing. It also reduces the cost of staffing for a company, minimizing cost of benefits and training and maximizing the budget.
Finally, having an outsourced trade compliance function can reduce your company’s overhead costs because you won’t be paying for things like healthcare, payroll taxes, benefits and other expenses that you normally would by having a full-time employee. This especially makes sense when a company needs part-time support and cannot justify hiring a full-time employee. To gain the expertise necessary, you need someone who has been doing this for years and can support your company in the capacity you need.
Even in times like this, it is critical to maintain compliance. If that isn’t possible with your budget, hiring a trade compliance consultant may be the answer you need. If you think outsourcing trade compliance may be a right fit for your company, contact us today for a free consultation. We can discuss your specific situations and discuss ways that we can assist you.
Emmalie Armstrong is a Trade Compliance Consultant with Export Solutions – a firm specializing in U.S. import/export regulations.