Why am I reminding you? Because this article on how compliance is not just about avoiding risk, it is also about ROI noted how a recent survey from Management Dynamics found that companies realize substantial savings from FTAs. Specifically, 40% of survey respondents said they are saving $500,000 or more per trade agreement.
NAFTA allows you to source from two countries. (Specifically, Canada and Mexico if you are in the U.S.) Furthermore, when you add these FTA savings on to what you can save from near-sourcing (significantly reduced transportation costs, reduced warehousing costs due to reduced inventory requirements due to reduced lead times, reduced currency risks, etc.), your savings potential becomes very significant.
Not to mention, if you adopt C-TPAT, import and export can become relatively quick, easy, and inexpensive compared to import and export from other countries. C-TPAT certified importers have fewer inspections and fewer delays. This not only results in in better visibility and lead-time predictions, but in shorter transit times which reduces overall supply chain costs.
So don’t forget, NAFTA is an FTA … and it can save you a lot of money if you near-source.