Global Trade Transformation

Ready or not, a global transformation and supply chain revolution is upon us. Companies face increased pressure to deliver Amazon-esque service, while regulators demand unprecedented transparency through auditable due diligence. This environment places increased pressures on existing supply chains. The days of free and open world trade are ending and are being replaced by a new era of international commerce fraught with trade wars, tariffs, detainments, sanctions, and political uncertainty. These new realities have generated major impacts on the ability to move goods globally, effectively, and efficiently. To meet these obligations, there is a requirement for a foundational shift in how business is conducted.

Yesterday’s Supply Chain Management Tools are Misaligned with Today’s Reality

To meet the demands of the present, we must create the supply chains of tomorrow, not fix the supply chains of yesterday. Simply trusting that the interconnected supply chain will operate seamlessly and that partners will efficiently and ethically respond to the regulatory requirements you perceive as critical is not a strategic plan. Trade managers must augment their capabilities with modern tools that can provide rapid, intelligent data-driven decisions. While you cannot eliminate disruption, modern large language models and generative artificial intelligence allows you to predict and mitigate it.

Introducing KargoWatch Artificial Intelligence (KWAI)

KWAI boasts the most developed and intelligent predictive assessment analysis on the market. KWAI has been trained with millions of historical customs clearance cases. As a result, KWAI is the most experienced Trade Manager in history. KWAI was built to consider 1 million risk factors by programming adaptive business rules within its risk profile engine. Our experience building trade and border applications has made us uniquely qualified and capable of building a product that identifies and focuses on the shipments you should concern you most.

Case Study

Acme’s Procurement and Tax team shifted from a trusted supplier in the Philippines to a new supplier in Malaysia to decrease the value added tax (VAT) burden. For the last five years, the supplier has been able to procure this part with a 7-day lead time, which was promised by the new supplier. However, after the initial order, 7 days passed without the order arriving in the docks. The delayed parts threatened to halt production and the matter was referred to the Trade team for expedited support. The trade team discovered that the part was subject to Malaysia’s Strategic Trade Act of 2010, so it required an export license. The license took a week to obtain, then the part was released. The urgency built, as past stock was running critically low. However, all attempts to locate the good by tracking number or through the 3PL received the same response, in transit. Frustration mounted, as another week passed, until finally a notice was received from customs indicating the shipment had been detained in the Port of Long Beach, until evidence of Uyghur Forced Labor Due Diligence was presented. The parts were never released, and Acme had to find replacements delaying a new product launch.

The KWAI Difference

KWAI would have seen the issue from the outset, first identifying the classification issue and alerting the trade team long before procurement came to call. KWAI also would have linked the initial purchase order and bill of lading to the vessel, letting the Trade team know exactly where the goods were along the entire journey. This evidence trail and KWAI’s risk profile engine would also have flagged the risk of UFLPA detainment at the Port of Long Beach and provided the critical evidence custom’s requested related to the transaction, country of origin, transit history, and commodity types to have the parts released from detainment.

The Value of Proactive Disruption Monitoring

Approximately 86% of all imports to the United States enter via maritime freight. KargoWatch is uniquely positioned to provide end to end sea freight visibility and to mitigate custom’s clearance risk. Adding KWAI, adds the most experienced Global Trade Manager in history to your team that will allow you to:

  • Provide end-to-end sea freight visibility

  • Real time risk identification

  • Proactively manage risk through actionable intelligence

  • Avoid compliance fines and penalties

  • Decrease duty spend

  • Accurately report on delivery and arrival times