Client Success Story
Navigating Global Trade Complexity: How Accelalpha Empowered a Major Manufacturing Organization with GTM
The Challenge
The organization, a worldwide leader in engines, power generation, product design, and manufacturing operating across 180 countries, faced complex challenges in managing free trade agreements, tariffs, and product restrictions. The objectives were clear:
- Take full advantage of Free Trade Agreements (FTA) in the UK and Belgium.
- Maintain a robust Worldwide Trade Management program.
- Keep up with Bill of Materials (BOM) qualifications and restrictions.
- Reduce costs.
- Minimize risk.
Our Approach
Accelalpha worked collaboratively with the organization to create a strategic roadmap for the implementation of Oracle GTM Cloud to ensure that duties and taxes were minimized. Our team demonstrated domain knowledge and delivered a successful GTM implementation to achieve the organization's objectives. This led to an expanded engagement covering the US and additional work related to free trade agreements. We completed configurations for the USMCA FTA. The organization is also considering managed services and more future solutions.
The Results
The partnership with the organization delivered the following significant benefits:
- Substantial reduction in taxes and duties by accurately reporting on the source of each part in a manufactured product and thereby taking advantage of free trade duty exemptions.
- Cost Reduction and Risk Mitigation:
- Achieved significant cost reduction and risk mitigation through optimized use of available Free Trade Agreements.
- Global Restricted Party Screening:
- Conducted screening on a global scale, involving approximately 10 million records from 23 sources and 115 instances.
- Global Item Master:
- Managed a global item master with around 7 million entries from 16 sources and 115 organizations.
- Accurate Global HTS/ECCN Classifications: (Harmonized Tariff Schedule/Export Control Classification Number)
- Implemented automated rules for accurate global HTS/ECCN classifications across regions (US, BE, BR, CN, EU, GB, IN, MX).
- Regional Business Processes:
- Optimized regional business processes, including UK Free Trade Agreements.
- Significance of Free Trade Agreements:
- Emphasized the crucial role of Free Trade Agreements in supporting international trade and reducing potential duties, exemplified by substantial savings in the US and the UK.
- Process Automation:
- Introduced process automation for scalable solutions, resulting in a higher degree of compliance and efficiency.
- Efficient Record-Keeping:
- Implemented automated documentation for timely availability of certifications, efficient record-keeping, and reliable data for supply chain planning and analytics.
The partnership not only delivered a robust worldwide trade management program but also improved compliance, cost efficiency, and risk management. The organization increased business process efficiency, improved communication with suppliers, and centralized data for enhanced reporting and analytics. The success of the collaboration was rooted in the organization's trust in Accelalpha's expertise, the strength of our existing relationship, and the close partnership with Oracle.