Before you decide on your resolutions, have a think about the logistics-related headlines we’ve come across in last few weeks:

• “Retailers facing 600,000 failed Christmas deliveries”
• “Patience wears thin when it comes to delivery delays”
• “Lack of Christmas click and collect could cost SMEs £200m”

You can have the best products and services in the world but if you fail to get them to your customers, when they expect them, you will be remembered for the wrong things. Worse still, they won’t come back to you and will tell others to steer clear.

Review your Supply Chain in 2015

If your business has suffered with similar logistics issues then one of your resolutions for 2015 has to be to carry out an end-to-end review of your entire supply chain, from source to customer, or cradle to grave, so to speak.

Even if you have been lucky enough not to fall foul of these problems, its still good practice to carry out such an exercise as you will be able to find out:

• What worked well?
• What didn’t work so well?
• What would need to be done differently?

Doing this will not only prepare you well ahead of any seasonal trading peaks but will also ensure that all routes to market in your business are working very efficiently.

Getting it right, either through your own operations or leveraging shared services/capability is definitely a sound investment.

At Navigator Solutions we can help carry out such a review, integrate and manage the service providers that you need to deliver your customer proposition (4PL – 4th party logistics services) and make sure that your business is remembered and talked about for delighting your customers, on time and every time.

Authorised Economic Operator Status

Another big subject to think about in 2015 is AEO (Authorised Economic Operator).

This is important for all businesses that import/export or handle goods through the international supply chain, such as:

o Logistics Service Provider (LSP)
o Warehouse Operator
o Freight Forwarder
o Manufacturer
o Importer and Exporter

If you fall into these categories then you need to be thinking about AEO, especially since the UK is lagging well behind Germany and France in terms of the number of organisations that have AEO status. In the UK there are only 350 (with two-thirds being LSP’s) whereas Germany has around 2,000 and France around 1,000. Numbers are fast increasing as we lead up to a significant change in EU customs regulations in 2016, when AEO will become the quality standard for those involved in importing and exporting.

If you export, or import and distribute to the EU or beyond, your customers may not want to trade with you, unless you and the logistics providers your use have acquired AEO status.

Moreover, products could take longer and become more costly to get to market. Either way, your supply chain will be disadvantaged.

Achieving AEO status can be time consuming and requires technical expertise. Plus which type of accreditation do you need?

1. Customs simplification ©
2. Security & safety (S)
3. A combination of the two (F)

It is a daunting prospect if this is not your area of expertise, but the benefits are significant:

Competitive Advantage

• Priority examination & faster clearance of your goods


• Faster delivery to your warehouse or your customers


• More timely and accurate information


• Reduction in insurance premiums


• What is seen as a significant benefit: the reduction of customs deferment account guarantees, and avoidance of new upcoming mandatory guarantees for companies using special customs procedures


• Opportunities to uncover logistical and customs duty minimisation opportunities during the end to end process


• Lower risk score with Customs = less likelihood of audit at the time of and after import/export


• Accessibility to simplified/fast track customs procedures


• In the future options to install centralised clearance covering all EU states, and self-customs assessment


• Greater supply chain consistency/reliability

Business Reputation

• Enhanced trading status


• Increasing mutual recognition (currently includes the USA, China, Switzerland)


• Mutual recognition across EU and USA


• Indicates strong business practices and controls


• Demonstrates that your company is trustworthy and compliant


• Waivers financial guarantees


• Supports due diligence/corporate social responsibility and good governance


• Trusted trader status – enhanced standing with regulators and customers

Administration

• Reduces information requirements for pre-shipment and post arrival procedures


• Reduces physical and documentary controls


• Easier identification of fraud and counterfeiting


• Opportunities to improve and rationalise systems


• Companies with a turnover exceeding £200m are subject to Senior Accounting Officer compliance. AEO accreditation is clear evidence that the business has appropriate customs processes and controls in terms of SAO customs duty/indirect tax requirements


• Robust/effective procedures


• Evidence compliance and supply chain security

If you need help or are just too busy to get all this in place please do contact us at Navigator Solutions, we are just one phone call or email away and can work with you to improve your supply chain in 2015.

Contact us on +44(0)1494-858-341 OR enquiries@navigatorsolutions.co.uk