Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
When U.S. Customs and Border Protection (CBP) unveiled its Importer Security Filing (ISF) rule, many people suspected that their business operations were about to change in a big way. Nearly a year after the rule's implementation, it's abundantly clear that their assessment was right on the mark.
The ISF rule, which is intended to help CBP screen incoming ocean containers for security risks, is popularly known as "10+2"—a name derived from the number of data elements importers (10) and ocean carriers (2) must provide to CBP before a U.S.-bound container is loaded on board a ship.
To comply with the rule, which CBP began enforcing in January, importers have been forced to make a number of procedural changes. They must collect more data than before—often from different parties than in the past—and report it to CBP much earlier and in a different format than they used to.
The road to compliance has been a bumpy one; these and many other ISF-related changes have given rise to a host of questions, complications, and procedural errors that have affected almost every importer at some point. Addressing them often requires extremely detailed, technical knowledge, but there are a few general steps you can take to avoid some of the obstacles. In this follow-up to our July 2010 article ("'10+2' + technology = progress"), we share six tips that may make your path to "10+2" compliance a little smoother.
1. Read CBP's "ISF Frequently Asked Questions." This 63-page download is required reading for anyone who's involved in 10+2 compliance—not just those in import operations but also technical staff who are responsible for software modification and data formatting. The document, updated in July 2010, explains what importers should do and how the agency will respond in specific situations. These FAQs can be found on the Importer Security Filing page of CBP's website.
A useful summary of ISF basics is the PowerPoint "10+2 Program: Importer Presentation" located on the same page. This document explains relationships, responsibilities, typical problems encountered, and where to get more information.
2. Get expert assistance. Although some large importers handle their own filings, most importers, large and small, find the details of compliance daunting enough that they seek outside assistance. Many go to their customs brokers for help in managing their filings and keeping abreast of changing policies and procedures. But customs brokers aren't the only source of information. You can also obtain expert advice from trade compliance consultants, global trade management software companies, and specialized organizations like the American Association of Exporters and Importers and the International Compliance Professionals Association.
3. Develop an ISF standard procedures manual. So many procedures and technical requirements have changed that no one can—or should—expect people to figure it out on their own. Having a procedures manual is therefore essential, says Beth Peterson, co-author of two research studies on ISF compliance and president of BPE Global, a San Francisco-based consulting firm that specializes in import/export compliance. An online or printed manual will help you train not only your own employees but also your suppliers' staffs, she says.
4. Build ISF compliance into your supplier contracts and communications. You have no choice but to rely on suppliers and providers of transportation and logistics services to provide some of the ISF data—and to provide it within some very tight windows. One of the best ways to make sure you get what you need when you need it is to write those requirements into contractual agreements and service contracts. Peterson recommends raising the subject during negotiations with suppliers like contract manufacturers, rather than waiting until it's time to ship. "You have to get this done at the time you negotiate the broader contract," she says. "You don't want to go back and tell them after the fact, 'Oh, by the way, you have to give me this information within this time frame.'"
Along those lines, CBP recommends incorporating ISF data requirements into purchase orders and advance shipment notifications. Some importers also mandate that their vendors use an online booking tool that requires them to enter all ISF data before they can obtain a booking confirmation or require their suppliers to undergo training in ISF compliance.
5. Give CBP everything you've got, as soon as you've got it. Sometimes it's simply not possible to obtain every piece of data within the required time frame. "Send what you have, even if you don't have a bill of lading number yet," advises Peterson. "Make sure what you do send is timely. You can update it as soon as you get additional details."
So far, she says, importers that communicate with customs authorities and can demonstrate that they're making an honest effort to get the information and resolve any problems are "not feeling a lot of pressure. ... Customs has been true to its word" that it will take those efforts into consideration when assessing compliance levels.
6. Automate, automate, automate. That's the message from vendors of global trade management (GTM) software. Although they have an obvious interest in promoting automated solutions, they do have a valid point, especially in regard to ISF filings. With so many parties now involved in providing data and with tighter deadlines to meet, using software to standardize data collection and formatting is a huge time saver. It can also promote accuracy, minimize errors, and avoid duplication of effort. On top of that, the software can identify information gaps, provide greater visibility into overseas activities and costs, create a compliance audit trail, and improve data integrity throughout the supply chain.
Don't let your guard down
Since 10+2 has been in effect, importers have experienced numerous glitches, surprises, and holdups, caused mostly by inaccurate, conflicting, missing, or late information. They have also seen their order-to-delivery cycle times stretch by an average of two days, according to a survey conducted late last year by American Shipper magazine and BPE Global.
Thanks to regular communication between the trade community and CBP, and to hard work by organizations like AAEI and CBP's advisory councils, many of those issues have been resolved—or at least they're on the agency's radar screen. In fact, the trade community has done remarkably well in meeting the complex ISF requirements. In a July 23 letter to 15 industry organizations, CBP Commissioner Alan Bersin wrote, "To date, CBP is very satisfied with the compliance levels of the trade community."
Even if you're confident your company merits such praise, that doesn't mean it's safe to let your guard down. Instead, use the six suggestions offered here to make sure that when it comes to ISF compliance, you, your suppliers, and your service providers are all following best practices.
E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.
Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).
“Retail and e-commerce continue to evolve,” Jeff Wolpov, Ryder’s senior vice president of e-commerce, said in a statement announcing the survey’s findings. “The emergence of e-commerce and growth of omnichannel fulfillment, particularly over the past four years, has altered consumer expectations and behavior dramatically and will continue to do so as time and technology allow.
“This latest study demonstrates that, while consumers maintain a robust
appetite for e-commerce, they are simultaneously embracing in-person shopping, presenting an impetus for merchants to refine their omnichannel strategies.”
Other findings include:
• Apparel and cosmetics shoppers show growing attraction to buying in-store. When purchasing apparel and cosmetics, shoppers are more inclined to make purchases in a physical location than they were last year, according to Ryder. Forty-one percent of shoppers who buy cosmetics said they prefer to do so either in a brand’s physical retail location or a department/convenience store (+9%). As for apparel shoppers, 54% said they prefer to buy clothing in those same brick-and-mortar locations (+9%).
• More customers prefer returning online purchases in physical stores. Fifty-five percent of shoppers (+15%) now say they would rather return online purchases in-store–the first time since early 2020 the preference to Buy Online Return In-Store (BORIS) has outweighed returning via mail, according to the survey. Forty percent of shoppers said they often make additional purchases when picking up or returning online purchases in-store (+2%).
• Consumers are extremely reliant on mobile devices when shopping in-store. This year’s survey reveals that 77% of consumers search for items on their mobile devices while in a store, Ryder said. Sixty-nine percent said they compare prices with items in nearby stores, 58% check availability at other stores, 31% want to learn more about a product, and 17% want to see other items frequently purchased with a product they’re considering.
Ryder said the findings also underscore the importance of investing in technology solutions that allow companies to provide customers with flexible purchasing options.
“Omnichannel strength is not a fad; it is a strategic necessity for e-commerce and retail businesses to stay competitive and achieve sustainable success in 2024 and beyond,” Wolpov also said. “The findings from this year’s study underscore what we know our customers are experiencing, which is the positive impact of integrating supply chain technology solutions across their sales channels, enabling them to provide their customers with flexible, convenient options to personalize their experience and heighten customer satisfaction.”
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Krish Nathan is the Americas CEO for SDI Element Logic, a provider of turnkey automation solutions and sortation systems. Nathan joined SDI Industries in 2000 and honed his project management and engineering expertise in developing and delivering complex material handling solutions. In 2014, he was appointed CEO, and in 2022, he led the search for a strategic partner that could expand SDI’s capabilities. This culminated in the acquisition of SDI by Element Logic, with SDI becoming the Americas branch of the company.
A native of the U.K., Nathan received his bachelor’s degree in manufacturing engineering from Coventry University and has studied executive leadership at Cranfield University.
Q: How would you describe the current state of the supply chain industry?
A: We see the supply chain industry as very dynamic and exciting, both from a growth perspective and from an innovation perspective. The pandemic hangover is still impacting decisions to nearshore, and that has resulted in a spike in business for us in both the USA and Mexico. Adding new technology to our portfolio has been a significant contributor to our continued expansion.
Q: Distributors were making huge tech investments during the pandemic simply to keep up with soaring consumer demand. How have things changed since then?
A: The consumer demand for e-commerce certainly appears to have cooled since the pandemic high, but our clients continue to see steady growth. Growth, combined with low unemployment and high labor costs, continues to make automation a good investment for many companies.
Q: Robotics are still in high demand for material handling applications. What are some of the benefits of these systems?
A: As an organization, we are investing heavily in software that will allow Element Logic to offer solutions for robotic picking that are hardware-agnostic. We have had success deploying unit picking for order fulfillment solutions and unit placing of items onto tray-based sorters.
From a benefit point of view, we’ve seen the consistency of a given operation improve. For example, the placement accuracy of a product onto a tray is far higher from a robotic arm than from a person. In order fulfillment applications, two of the biggest benefits are reliability and hours of operation. The robots don't call in sick, and they are happy to work 22 hours a day!
Q: SDI Element Logic offers a wide range of automated solutions, including automated storage and sortation equipment. What criteria should distributors use to determine what type of system is right for them?
A: There are a significant number of factors to consider when thinking about automation. In my experience, automation pays for itself in three key ways: It saves space, it increases the efficiency of labor, and it improves accuracy. So evaluating which of these will be [most] beneficial and quantifying the associated savings will lead to a “right sized” investment in technology.
Another important factor to consider is product mix. With a small SKU (stock-keeping unit) base, often automation doesn’t make sense. And with a huge SKU base, there will be products that don’t lend themselves to automation.
With any significant investment, you need to partner with an organization that has deep experience with the technologies that are being considered and … in-depth knowledge of the process that is being automated.
Q: How can a goods-to-person system reduce the amount of labor needed to fill orders?
A: In most order picking operations, there is a considerable amount of walking between pick faces to find the SKUs associated with a given order or set of orders. Goods-to-person eliminates the walking and allows the operator to just pick. I have seen studies that [show] that 75% of the time [required] to assemble an order in a manual picking environment is walking or “non-picking” time. So eliminating walking will reduce the amount of labor needed.
The goods-to-person approach also fits perfectly with robotic picking, so even the actual picking aspect of order assembly can be automated in some instances. For these reasons, [automation offers] a significant opportunity to reduce the labor needed to fulfill a customer order.
Q: If you could pick one thing a company should do to improve its distribution center operations, what would it be?
A: Evaluate. Evaluate the opportunities for improving by considering automation. In my experience, the challenge most companies have is recognizing that automation is an alternative. The barrier to entry is far lower than most people think!
Toyota Material Handling and its nationwide network of dealers showcased their commitment to improving their local communities during the company’s annual “Lift the Community Day.” Since 2021, Toyota associates have participated in an annual day-long philanthropic event held near Toyota’s Columbus, Indiana, headquarters. This year, the initiative expanded to include participation from Toyota’s dealers, increasing the impact on communities throughout the U.S. A total of 324 Toyota associates completed 2,300 hours of community service during this year’s event.
The PMMI Foundation, the charitable arm of PMMI, The Association for Packaging and Processing Technologies, awarded nearly $200,000 in scholarships to students pursuing careers in the packaging and processing industry. Each year, the PMMI Foundation provides academic scholarships to students studying packaging, food processing, and engineering to underscore its commitment to the future of the packaging and processing industry.
Truck leasing and fleet management services provider Fleet Advantage hosted its “Kids Around the Corner Foundation” back-to-school backpack drive in July. During the event, company associates assembled 200 backpacks filled with essential school supplies for high school-age students. The backpacks were then delivered to Henderson Behavioral Health’s Youth & Family Services location in Tamarac, Florida.
For the past seven years, third-party logistics service specialist ODW Logistics has provided logistics support for the Pelotonia Ride Weekend, a campaign to raise funds for cancer research at The Ohio State University’s Comprehensive Cancer Center–Arthur G. James Cancer Hospital and Richard J. Solove Research Institute. As in the past, ODW provided inventory management services and transportation for the riders’ bicycles at this year’s event. In all, some 7,000 riders and 3,000 volunteers participated in the ride weekend.
After years in the military, service members and their spouses can find the transition to civilian life difficult. For many, a valuable support on that journey is the U.S. Department of Defense (DOD) SkillBridge program. During their final 180 days of service, participants in the program are connected with companies that provide them with civilian work experience and training. There is no cost to those companies while the service member continues receiving military compensation and benefits.
Both sides benefit from the program. “We’re proud to work with SkillBridge to give back to our military veterans for the bravery and sacrifices they’ve made for all of us,” Troy Pederson, director of training and development at LiftOne, a Hyster-Yale dealer and established SkillBridge employer, said in a release. “In the last year, we’ve helped 10 SkillBridge interns transition from military to civilian life, and the value and positive impact of the program can’t be overstated. At LiftOne, we’ve gained so much from the experience and diverse mix of technical and leadership skills of our SkillBridge candidates.”