Today’s guest post is from Clay Perry, SVP of Global Markets, of Integration Point, Inc.

It’s more than just an item master. It’s definitely more than just a spreadsheet. A
Global Classification platform includes various and multiple forms of classification data,
stores required documents, provides up-to-date trade content, and provides a
centralized, web-based solution that all trading partners can access. Having trouble
selling the need for a Global Classification platform internally? Below are 7 great
reasons why any organization needs, and can benefit from, a Global Classification
platform.

1. Centralize product databases
   By consolidating all product classification databases
   into a central, shared repository, you eliminate the all too common practice of using
   spreadsheets to manage a company’s multi-national parts list. As a result, the
   centrally controlled classification database reduces errors, increases internal and
   external communication, strengthens compliance, and improves the timeliness of the
   information shared with external trading partners.
   (Remember, up to 90% of spreadsheets contain non-trivial errors.)
2. Increase visibility
   Managing all classification data in one location provides visibility
   into when additions, changes, or deletions to the classification data repository are
   made.
3. Improve compliance across the supply chain
   Providing on-demand availability
   to the classification database via the web ensures that every trading partner has
   access to, and uses, the same classification data at every stage in the supply chain.
4. Minimize risks and/or delays in the supply chain
   Having the correct
   classification data in an easily accessible platform reduces the chance of shipments
   being delayed in Customs resulting in demurrage and other late fees.
5. Share classification data to maximum compliance in other trade areas
   Involving members from various areas within the organization — from the shop floor
   to shipping department to accounting — provides better classification data. By
   collecting input, facilitated by an online tool, you ensure that all product data used
   for classification determinations is thorough and timely.
6. Demonstrate reasonable care
   Complying with government regulations, such as
   the Modernization Act for US importers, is required by all importers and exporters.
   This means organizations must show they demonstrated reasonable care when
   deploying a solution focused on managing and maintaining accurate classification
   data.
7. Manage trade preference programs applicability
   Utilizing a Global Classification
   platform, organizations eliminate the possibility of missing duty savings opportunities
   caused by not flagging the products in the classification database and sharing that information with Customs Brokers that these products are eligible for Free Trade
   Agreements.

Thanks, Clay.

For more information on closing the loop with entry visibility, see the white-paper. For more information on why you need trade visibility,
download the Sourcing Innovation Illumination on Why You Need Trade Visibility.