Premium Paint and Coatings Company Saves Millions in Preferential Duties

• 分析与建模 - 机器学习
• 分析与建模 - 预测分析
• 功能应用 - 企业资源规划系统 (ERP)
• 平台即服务 (PaaS) - 数据管理平台

• 消费品
• 零售

• 商业运营
• 物流运输
• 采购

• 补货预测
• 监管合规监控
• 远程资产管理
• 供应链可见性(SCV)

• 软件设计与工程服务
• 系统集成
• 培训

As the company pushed for continuous improvement in customer service and efficiency, a costly trade operations bottleneck became evident. With products being sold only in the United States and Canada, leveraging a free trade agreement (FTA) between these countries is a significant duty savings opportunity for the organization. But there were recurring challenges — including delays — when clearing Customs into Canada. Due to a lack of automated processes, the company did not always have the necessary documentation from suppliers when shipments were crossing the border. As a result, the company paid the duty upfront and later filed paperwork to reclaim those payments, a process called drawback. It was not uncommon for the duty reconciliation process to go on for 12 months, restricting cash flow to the tune of up to $3 million annually. Any customs delays or unnecessary expenses were more than just an operational problem. They were a brand problem. To transform its trade operations, the organization realized it needed to reduce complications at the border, overhaul its poor handling of duty payments and gain efficiencies by replacing an outdated, manual approach.

This North American organization is a major manufacturer of home maintenance products, primarily paint and coatings. The company distributes its products exclusively through a network of thousands of independent retailers. Defined by innovation, technology and leadership, the brand has set new standards of excellence in every aspect of production and supply chain processes. Since the paint and coatings organization distributes exclusively through small, independent retailers, maintaining a solid relationship and delivering value to each of those retailers is essential for success. The company’s strategy is to be very easy to do business with, so customers get what they want without delays, at a minimum cost and with the expected high quality of the brand.

The company was searching for a solution provider with deep and broad expertise in trade compliance and process automation. With preferential trade savings between the United States and Canada vital to its bottom line, the organization also sought a leader in managing FTAs. Impressed with e2open’s ability to simplify complex trade agreement processes, reduce product costs and overhead and ensure regulatory compliance, the company selected e2open. Access to e2open’s comprehensive, up-to-date global trade content was a crucial factor. E2open’s global trade management functionality enables companies to utilize a single, collaborative platform for internal teams and suppliers to identify and accurately manage the processes for duty filings. The company selected the following e2open applications to leverage duty reduction opportunities, streamline operations through automation and improve cash flow: e2open Export Management, e2open Trade Agreements, and e2open Global Knowledge. The company was also able to capitalize on the value of working with e2open’s professional services team to ensure a smooth implementation and integration with existing software and business practices. E2open helped the paint and coatings company’s team understand how to use the system and provided assistance as needed until cost-saving product rollouts occurred more easily. The company was able to automate processing and make proper and efficient use of data.

• The company has streamlined border crossings, improved margins, reduced compliance risk and instantiated a platform for supply chain agility.
• Now that all data is centralized, the company can efficiently classify products, solicit suppliers for the documents necessary to qualify goods for a trade agreement and generate certificates of origin.
• Digital collaboration with supply chain partners like customs brokers and freight carriers has expedited border crossings, reduced costs and increased customer satisfaction.

• Freed up an estimated $2.7 million of cash annually.