The automotive industry operates in a highly globalized environment, with complex supply chains spanning multiple countries and continents. Managing international trade efficiently while complying with diverse regulations is a significant challenge. SAP’s Global Trade Management (GTM) solutions provide automotive companies with the tools to streamline cross-border trade, reduce risks, and ensure regulatory compliance.
Automotive manufacturers and suppliers deal with:
- Import and export of raw materials, components, and finished vehicles
- Compliance with customs regulations, trade agreements, and sanctions
- Complex logistics and transportation planning across global routes
- Duty and tax management to optimize costs
- Risk management related to trade policies and political changes
Effective Global Trade Management ensures that products move seamlessly across borders without delays or penalties, maintaining production schedules and customer commitments.
- Customs and Export Controls: SAP GTM helps automotive companies comply with import/export regulations by automating customs declarations, managing licenses and permits, and screening transactions against embargo lists.
- Trade Preference Management: Utilizes free trade agreements (FTAs) to reduce tariffs by proving origin and compliance, significantly cutting costs.
- Sanctions and Restricted Party Screening: Ensures that automotive companies do not engage in transactions with prohibited entities, reducing legal risks.
- Integration with customs authorities enables electronic filing of import/export declarations.
- Automated classification of goods (using HS codes) speeds up customs clearance.
- Supports multiple customs regimes, including temporary imports, inward processing, and customs warehousing.
- Helps calculate duties and taxes accurately and optimize cash flow.
¶ 3. Logistics and Transportation Management Integration
- SAP GTM interfaces with SAP Transportation Management (TM) to plan and execute shipments efficiently.
- Ensures shipments comply with trade regulations during transport.
- Tracks the movement of goods globally to maintain visibility and control.
- Centralized repository for managing trade documents such as commercial invoices, packing lists, certificates of origin, and licenses.
- Ensures all required documentation is complete and compliant before shipments leave the facility.
¶ 5. Risk and Audit Management
- Tracks compliance history and audit trails to support internal controls and external audits.
- Helps identify potential trade risks early and implement corrective actions.
- Regulatory Compliance: Reduces the risk of fines and shipment delays by ensuring adherence to international trade laws.
- Cost Savings: Optimizes duties and taxes through trade preference programs and efficient customs procedures.
- Supply Chain Visibility: Provides end-to-end tracking of goods, improving planning and responsiveness.
- Operational Efficiency: Automates manual processes, reducing administrative workload and errors.
- Enhanced Collaboration: Improves coordination between procurement, logistics, customs brokers, and compliance teams.
¶ Challenges and Best Practices
- Keeping Up with Regulations: Automotive companies must continuously monitor changing trade regulations and update SAP GTM configurations accordingly.
- Data Accuracy: Maintaining clean and accurate master data is crucial for classification, valuation, and compliance.
- Integration: Seamless integration with other SAP modules (ERP, TM, EWM) and external customs systems is essential for smooth operations.
- User Training: Regular training ensures that teams understand compliance requirements and system usage.
Global Trade Management is a vital capability for automotive companies navigating the complexities of international commerce. SAP GTM equips these organizations with comprehensive tools to automate compliance, optimize costs, and maintain supply chain fluidity. In a sector where timing and precision are crucial, effective global trade management directly contributes to operational excellence and competitive advantage.