A conversation with KES Chief Technologist Britt Lowry
Britt Lowry
Member, Technology Practice Director
What services does your international practice group offer now, and what do you want it to offer?
BL: KES provides enterprise level software solutions, services, and customizations to help our customer meet their regulatory compliance requirements for international imports and exports. Some of the specific areas where we assist our clients are in tracking and reporting product Country of Origin, Tariff Codes, Tariff Drawbacks, EDI and other electronic communications with foreign customers, vendors, freight forwarders, and the US Customs and Border Protection (CBP), as well as creating international invoices and shipping documentation. We also assist our clients with landed cost tracking for foreign purchases and shipments.
What have you observed among Middle Tennessee businesses when it pertains to exports? Is there an up tick in companies trying to reach foreign markets with their products, or trying to do international business in general?
BL: Mostly we have seen our customers pursuing efficiency improvements in lead-time, shipping, and handling costs with respect to offshore vendors and customers.
What are the pitfalls or challenges?
BL: Knowing the legal and regulatory requirements of the US and the country with which you are trading is a critical challenge. Also, it is important to take into consideration all the costs of exporting products such as regulatory compliance, packaging, shipping, port taxes / tariffs, insurance, product liability issues, and foreign language documentation. Have these costs been factored into the margin and price calculations?
What should companies do to navigate the environment if they haven’t before, or to improve their capabilities?
BL: Companies venturing into the export market should get advice from accounting, legal, and logistics specialists with international expertise. Missing a critical requirement can often result in fines, delayed shipments, confiscated materials, or much higher than expected costs. A relatively small, upfront investment in consulting can avoid high unexpected costs and damage to your reputation in a new market. We also recommend interviewing freight forwarding companies for their assistance. There are several good freight forwarders in the Middle Tennessee area.
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