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2013

INTEGRATED TRADE COMPLIANCE STRATEGIES:
THE ROLE OF CORPORATE LEADERSHIP

REYNOLD MARTENS
Executive Vice President, ...
TRADE IS CHANGING THE LANDSCAPE
NAFTA IMPACT ON TRADE
260
240

INDEX (1989 = 100)

220
200
180
160
140

TRENDLINE PROJECTION:
TRADE VOLUME WILL
EXPAND
BY ...
CANADA’S EXPORTS AND IMPORTS
CANADA’S INTERNATIONAL IMPORT SOURCES
JAN-NOV 2011 IMPORTS: $409.3 BILLION
MEXICO
5.6%

GERMANY
2.9%

JAPAN
2.8%

UNITED K...
CANADA’S INTERNATIONAL EXPORT DESTINATIONS
JAN-NOV 2011FOREIGN MERCHANDISE EXPORTS: $381.7 BILLION

UNITED STATES
73.5%

O...
PROJECTED EXPORT MARKETS 2040
NORTH AMERICAN SUPPLY CHAIN
GLOBAL TRADE REGULATORS’ OBJECTIVES
GLOBAL TRADE COMPLEXITY
REGULATORY INTERVENTION TREND
100
90

80
70
60
50

Audits

40

30
20
10
0
2003 2004 2005 2006 2007 2008 2009 2010 2011
WHO IS AT RISK?

R
I
S
K
Always
Some
Low Tech/Low Knowledge
Fewer/Scarcer Resources
Multitasking
Total Trust
Customs Low P...
SILO MODEL
Board

CEO

Executive Team

Efficient

Profitable

Competitive

Product Design

Assets & Liabilities

Domestic ...
INTEGRATED MODEL
Board

CEO

Executive Team

Efficient

Profitable

Business Operations

Competitive

Financial
Management...
INTEGRATED COMPLIANCE STRATEGY CONTINUUM
Integrated
Import
or
Export

Integrated
Import
and
Export

None

LOW

Piecemeal

...
7 BEST PRACTICES OF LEADING TRADERS

SERVICE

PRIORITY

PROVIDERS ARE
PARTNERS

IDENTIFIED BY
LEADERSHIP

GROWTH PLANS
FAC...
7 BEST PRACTICES OF LEADING TRADERS
CORPORATE
LEADERSHIP
IDENTIFIED TRADE
COMPLIANCE AS A
PRIORITY
Compliance becomes part...
THE ROLE OF CORPORATE LEADERSHIP
GOVERNANCE

REPUTATION

STRATEGY

RISK
INTELLIGENCE
BALANCE OF STRATEGY AND RISK

MARKETS

COMMERCIAL

SUPPLY CHAINS

REGULATORY
PUTTING THE PIECES TOGETHER

SUBSIDIARIES
JOINT VENTURES
SUPPLY CHAINS
MARKETS
CUSTOMERS
BALANCE OF RISK AND OPPORTUNITY/EXPOSURE
5-A MODEL

Governance

Strategy

Risk Intelligence

Board

Awareness

CEO

Executive Team

Accountability

Alignment

Asse...
INTEGRATED MODEL
Board

CEO

Executive Team

Efficient

Profitable

Business Operations

Competitive

Financial
Management...
SIX BENCHMARKING QUESTIONS
1. IS GLOBAL TRADE COMPLIANCE CURRENTLY A SIGNIFICANT PRIORITY
FOR YOUR BOARD?

2. IS YOUR BOAR...
SIX BENCHMARKING QUESTIONS
4. HAS A QUALIFIED INDIVIDUAL OR DEDICATED TEAM BEEN CHARGED
WITH OVERSEEING TRADE RISK ASSESSM...
SIX BENCHMARKING QUESTIONS
WHITE PAPERS
2013
!

!

!

REYNOLD M ARTENS
Executive Vice President, GHY International
President, GHY USA Inc.
REYNOLD MARTENS
Executive Vice President, GHY International
President, GHY USA Inc.
204-947-6700 ext.285
reynold@ghy.com
Ghy white paper #3 presentation   the role of corporate leadership 2013 (pc friendly)
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Ghy white paper #3 presentation the role of corporate leadership 2013 (pc friendly)

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  • very good insight into corporate responsibilities ! Many thanks, and I hope to share distilled insights with International Trade classes.

    Jeffrey Gazen,
    Professor, International Transportation and CustomsProgram
    Seneca College
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Ghy white paper #3 presentation the role of corporate leadership 2013 (pc friendly)

  1. 1. 2013 INTEGRATED TRADE COMPLIANCE STRATEGIES: THE ROLE OF CORPORATE LEADERSHIP REYNOLD MARTENS Executive Vice President, GHY International President, GHY USA Inc.
  2. 2. TRADE IS CHANGING THE LANDSCAPE
  3. 3. NAFTA IMPACT ON TRADE 260 240 INDEX (1989 = 100) 220 200 180 160 140 TRENDLINE PROJECTION: TRADE VOLUME WILL EXPAND BY 1.4x TO 2020 120 100 80 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 EXPORT VOLUME IMPORT VOLUME TOTAL TRADE
  4. 4. CANADA’S EXPORTS AND IMPORTS
  5. 5. CANADA’S INTERNATIONAL IMPORT SOURCES JAN-NOV 2011 IMPORTS: $409.3 BILLION MEXICO 5.6% GERMANY 2.9% JAPAN 2.8% UNITED KINGDOM 2.3% CHINA 10.8% SOUTH KOREA 1.5% UNITED STATES 49.5% FRANCE 1.2% OTHER 39.7% ITALY 1.1% OTHER COUNTRIES 21.0% Data Source: Industry Canada, Trade Data Online, January 2012 ALGERIA 1.2%
  6. 6. CANADA’S INTERNATIONAL EXPORT DESTINATIONS JAN-NOV 2011FOREIGN MERCHANDISE EXPORTS: $381.7 BILLION UNITED STATES 73.5% OTHER 22.4% UNITED KINGDOM 4.3% CHINA 3.8% JAPAN 2.5% SOUTH KOREA 1.2% NETHERLANDS 1.1% MEXICO 1.1% GERMANY 0.9% NORWAY 0.7% OTHER Data Source: Industry Canada, Trade Data Online, January 2012 COUNTRIES 10.2% FRANCE 0.7%
  7. 7. PROJECTED EXPORT MARKETS 2040
  8. 8. NORTH AMERICAN SUPPLY CHAIN
  9. 9. GLOBAL TRADE REGULATORS’ OBJECTIVES
  10. 10. GLOBAL TRADE COMPLEXITY
  11. 11. REGULATORY INTERVENTION TREND 100 90 80 70 60 50 Audits 40 30 20 10 0 2003 2004 2005 2006 2007 2008 2009 2010 2011
  12. 12. WHO IS AT RISK? R I S K Always Some Low Tech/Low Knowledge Fewer/Scarcer Resources Multitasking Total Trust Customs Low Priority 140,000 Small Importers Multiple Priorities Purchasing/Traffic Dept. Many Tasks Low Mgmt. Buy In High Trust/High Risk 9,000 Medium Importers High Tech/High Knowledge Customs Champion/Dept. High Accountability Risk Mgmt. Buy In By Executive Importer of Record Customs Responsibility High Priority 1,000 Large Importers
  13. 13. SILO MODEL Board CEO Executive Team Efficient Profitable Competitive Product Design Assets & Liabilities Domestic Sales Production/Manufacturing Cash Flow Management International Sales Global Sourcing Regulatory Compliance New Export Markets Supply Chain/Logistics Risk Management Contract Negotiations Shipping Financial Report Contract Management Human Resources Administration Sales Administration Information Technology CDN Customs Broker US Customs Broker Trade Services Marketing CDN Auditors US Auditors Legal Services Finance Services
  14. 14. INTEGRATED MODEL Board CEO Executive Team Efficient Profitable Business Operations Competitive Financial Management Business Development Product Design/Engineering Assets & Liabilities Domestic Sales Production/Manufacturing Cash Flow Management International Sales Regulatory Compliance New Global Sourcing Minimize Optimize Integrated International Export Markets Risk Management Contract Negotiations Supply Chain/Logistics Risk Opportunity Trade Strategy Financial Report Shipping Contract Management Sales Administration Human Resources Information Technology Administration Marketing Service Providers ·Legal ·Financial Predictable ·Trade Compliant ·Customs Sustainable
  15. 15. INTEGRATED COMPLIANCE STRATEGY CONTINUUM Integrated Import or Export Integrated Import and Export None LOW Piecemeal RISK HIGH FULLY NONE INTEGRATED COMPLIANCE STRATEGY INTEGRATED
  16. 16. 7 BEST PRACTICES OF LEADING TRADERS SERVICE PRIORITY PROVIDERS ARE PARTNERS IDENTIFIED BY LEADERSHIP GROWTH PLANS FACTOR COMPLIANCE VARIABLES BEST PRACTICE LEADER COMMUNICATION COMPLIANCE "CHAMPION" OR TEAM KPI AND MEETING PROTOCOLS DEVELOPMENT SYSTEMS TO TRACK AND MEASURE
  17. 17. 7 BEST PRACTICES OF LEADING TRADERS CORPORATE LEADERSHIP IDENTIFIED TRADE COMPLIANCE AS A PRIORITY Compliance becomes part of Corporate Doctrine. Recognized that consequences are significant and can be both Good and Bad. Studies suggest only 40% of senior management have awareness. 1
  18. 18. THE ROLE OF CORPORATE LEADERSHIP GOVERNANCE REPUTATION STRATEGY RISK INTELLIGENCE
  19. 19. BALANCE OF STRATEGY AND RISK MARKETS COMMERCIAL SUPPLY CHAINS REGULATORY
  20. 20. PUTTING THE PIECES TOGETHER SUBSIDIARIES JOINT VENTURES SUPPLY CHAINS MARKETS CUSTOMERS
  21. 21. BALANCE OF RISK AND OPPORTUNITY/EXPOSURE
  22. 22. 5-A MODEL Governance Strategy Risk Intelligence Board Awareness CEO Executive Team Accountability Alignment Assessment Implementation Business Functions Adaptability
  23. 23. INTEGRATED MODEL Board CEO Executive Team Efficient Profitable Business Operations Competitive Financial Management Business Development Product Design/Engineering Assets & Liabilities Domestic Sales Production/Manufacturing Cash Flow Management International Sales Regulatory Compliance New Global Sourcing Minimize Optimize Integrated International Export Markets Risk Management Contract Negotiations Supply Chain/Logistics Risk Opportunity Trade Strategy Financial Report Shipping Contract Management Sales Administration Human Resources Information Technology Administration Marketing Service Providers ·Legal ·Financial Predictable ·Trade Compliant ·Customs Sustainable
  24. 24. SIX BENCHMARKING QUESTIONS 1. IS GLOBAL TRADE COMPLIANCE CURRENTLY A SIGNIFICANT PRIORITY FOR YOUR BOARD? 2. IS YOUR BOARD AWARE OF THE IMPLICATIONS OF ITS INTERNATIONAL TRADE ACTIVITIES AT ALL LEVELS? 3. DO YOUR STRATEGIC PLANS ROUTINELY INCORPORATE THE VARIOUS RISKS AND OPPORTUNITIES ASSOCIATED WITH GLOBALIZATION?
  25. 25. SIX BENCHMARKING QUESTIONS 4. HAS A QUALIFIED INDIVIDUAL OR DEDICATED TEAM BEEN CHARGED WITH OVERSEEING TRADE RISK ASSESSMENT WITH RESPECT TO YOUR ORGANIZATION’S INTERNATIONAL SOURCING, EXPORT MARKET DEVELOPMENT, AND/OR GLOBAL SUPPLY CHAIN ACTIVITY? 5. ARE PROCEDURES IN PLACE TO TRACK, MONITOR, AND REPORT INTERNATIONAL TRADE COMPLIANCE RISK VARIABLES AT THE BOARD LEVEL? 6. IS THERE A PROCESS IN PLACE TO ANALYZE NEW GROWTH STRATEGIES IN EMERGING MARKETS AND ASSESS POTENTIAL INTERNATIONAL TRADE RISKS PRIOR TO BUSINESS DECISIONS BEING MADE?
  26. 26. SIX BENCHMARKING QUESTIONS
  27. 27. WHITE PAPERS 2013 ! ! ! REYNOLD M ARTENS Executive Vice President, GHY International President, GHY USA Inc.
  28. 28. REYNOLD MARTENS Executive Vice President, GHY International President, GHY USA Inc. 204-947-6700 ext.285 reynold@ghy.com

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