Streamlining and Rationalising Customs Brokerage for a Global Sportswear Company

In the dynamic world of global trade, efficiency and strategic partnerships are key to maintaining a competitive edge. A prominent athletic apparel company operating across the world faced challenges in managing a diverse network of customs brokers, leading to increased fees, fragmented data access, and inefficiencies in customs clearance processes. The company aimed to consolidate its brokerage operations, reduce costs, and enhance data visibility to streamline its global trade activities. DOJÖ (now part of Customs Support Group) was engaged to guide the company through this strategic overhaul, from assessing the current state to implementing a robust, streamlined brokerage  management strategy.

Fragmented Brokerage Network Driving Costs and Inefficiencies

The textile company’s expansive global operations involved a complex web of customs brokers, each with varying fee structures and levels of service efficiency. This fragmented approach resulted in high operational costs, limited oversight of customs data, and inconsistent customs clearance lead times. Recognising the need for a more integrated and efficient brokerage management system, the company sought CSG’s expertise to navigate the intricate process of broker rationalisation and optimisation.

Strategic Broker Rationalisation and Operational Restructuring

CSG’s strategy encompassed a comprehensive assessment and restructuring of the company’s customs brokerage operations. Our initial step involved an in-depth “AS-IS” situation analysis to evaluate the company’s current engagements with its numerous brokers, including a detailed review of fees and service levels. This foundational analysis was crucial in identifying areas for consolidation and optimisation.

Armed with insights from the assessment, CSG played a pivotal role in shaping the Request for Proposal (RFP) process, defining a clear selection matrix, and participating in the evaluation of broker proposals. Our expertise ensured that the selection criteria aligned with the company’s strategic goals, emphasising cost-efficiency, data accessibility, and reliability.

In parallel, CSG assisted in formulating contingency plans and strategies to ensure business continuity during the transition phase. Our hands-on support during the deployment of the new brokerage structure was instrumental in minimising disruptions and maintaining seamless operations across all regions.

Delivering Cost Savings, Visibility, and Operational Efficiency

The entire project was completed in 3 months. The deployment took 2 months. The outcomes of this strategic initiative were transformative, yielding significant benefits for the sportswear company:

• A 25% reduction in brokerage fees was achieved, directly impacting the bottom line and enhancing the cost-effectiveness of the company’s global trade operations.
• The consolidation of brokerage services to two main brokers per region, simplifying management and improving service consistency.
• The establishment of a global contingency plan for brokerage activities.
• The establishment and deployment of clear Key Performance Indicators (KPIs) provided measurable benchmarks for ongoing performance assessment and broker accountability.
• Direct access to customs data was secured, empowering the company with real-time visibility and control over its customs operations.
• A global reduction in customs lead time by 10% was realised, enhancing operational efficiency and responsiveness in the highly competitive textile market.

——————–

Disclaimer:

We take our clients’ confidentiality very seriously. While we have changed their names, the results are real. All our case studies are derived from real cases. Feel free to contact our experts to obtain referrals from our clients about the value creation of our services. You will then be able to see the results firsthand.

Article originally published by DOJO Consulting Group on www.welcometodojo.com, now part of Customs Support Group.