How can you manage to run a compliant midsize global operation without a Global Trade Management System? We are currently operating on an older version of SAP GTS and are due for an expensive and workload-intensive upgrade at the end of next year. Questions are many. Is there any TMS technology that already has an embedded GTS system? Should we consider outsourcing?

Managing a compliant midsize global operation without a Global Trade Management System (GTS) can be quite challenging. Here are a few points to consider:
1 - Embedded GTS Systems: Some Transportation Management Systems (TMS) integrate GTS functionalities. For example, SAP offers an integration between SAP Transportation Management (SAP TM) and SAP Global Trade Services (SAP GTS). This integration can help streamline logistics and compliance processes1.
2 - Outsourcing: Outsourcing your GTS needs can be a viable option. Companies like KPMG offer Global Trade Management Systems consulting and managed services. Outsourcing can help you save costs, increase efficiency, and improve compliance without the need for a full in-house upgrade

We don't have a custom-built solution for handling customs; instead, we use a "best of breed" approach, partnering with specialized service providers. Here's an overview of our current customs handling process, covering both inbound, outbound and relocation needs:

Inbound Customs Handling

1. Container Inbound Customs:

- We work with three main partners for customs declarations:
- Kühne + Nagel (K&N): Manages both transportation and customs declarations.
- Schenker: Responsible for both transport and customs.
- Maersk Custom Services (formerly KGH): Specializes in customs declarations for non-EU imports into the EU and from the EU into the UK.

Additional Notes:

- Customs duties and import VAT are managed by these partners, and associated costs, including service fees, are invoiced back to Zooplus.
- Data for Container Purchase Orders with K&N is exchanged via their platform, while customs declarations are handled directly by our partners.
 

2. Trucks Inbound/Outbound Customs:

Import/Export Clearance:

- Switzerland: Rhenus Switzerland handles both export from the EU and import clearance into Switzerland, ensuring our customers are exempt from managing customs duties and payments.
- Norway: Exports are managed by Rhenus Switzerland; imports are handled by their local partner, Bring.
- UK: Rhenus oversees export clearance from the EU, with their partner ALS managing the import process in the UK.

Customs Payments:

- In the UK, we use a deferment account to temporarily defer duties.
- For other countries, logistics providers handle customs payments directly and invoice us with additional service fees.
 

3. Relocation(Stock movement from one warehouse to another)

- We're relocating goods with stock transfer order, involving export and import clearance. Maersk Custom Services (KGH) primarily handles this process, with export clearance from NL managed by Geodis.
 

Customs Reporting and Compliance

1. Monthly Customs Reports: Our service providers provide detailed customs and tax reports each month.

2. VAT Compliance: Our VAT team reviews these reports, and local tax filings are managed by tax advisors using a streamlined VAT process.

3. Booking and Tracking: All customs duty payments are tracked in a separate account for clear oversight.

Challenges with the Current Approach
- Heavy reliance on external partners
- Additional costs due to service fees
- Lack of automation
- No centralized control