Sitpro, the UK's trade facilitation organisation who work to simplify international trade, has just published

  "The European Customs Environment and the UK Trader"

The large amount of work taking place in Europe around the developing EU Customs environment can often be daunting, but its impact will be felt by all traders in the UK. In this document, SITPRO focuses on giving an insight into these EU Customs developments, the Customs regulations which underpin it and the Customs initiatives that will implement it.

The publication is available from the SITPRO website at http://www.sitpro.org.uk/reports/eurcustenviro.pdf

I would recommend anyone involved in intra EU or international trade reads this document, as these initiative will have an impact on your business. It provides an excellent summary of all the current Customs initiatives and implementation framework, which is often difficult to piece together from HMRC and EU Commission website and documentation.

It should always be remembered that even if you use agents to complete its Customs formalities you are still responsible for these formalities under the law.  Therefore, being aware of current and upcoming legislation is of vital importance.

A further article based on the American Chamber of Commerce white paper, is highlighting the problem of rising costs in China.  These rising costs are influencing sourcing decisions of low margin businesses such as those involved in textiles, toys and shoes.

Click here to read the full article in Industry Week.

This article also points to the top 5 challenges of doing business in China:

• Human resources constraints
• Inconsistent regulatory interpretation
• Unclear regulations
• Lack of transparency
• Bureaucracy

This confirms my experience of talking to and working with companies who are sourcing from China.  It would appear the only way to work successfully with suppliers in China is to partner with a local company who understand the workings of the Chinese system, the culture and not least the language.

I found this article today, based on a white paper from the American Chamber of Commerce in China.  It provides an excellent summary of the key issues which should be considered when contemplating overseas sourcing. Click here to read the article.

It is surprising how many organisations do not consider all these points until problems arise, which often result in a combination of the following:

• Supply chain disruption
• Increased costs
• Lost sales
• Loss of customer confidence

It is also true that sourcing costs in China are rising. Their recent supremacy is being seriously challenged by India, Vietnam and, much closer to home, by Eastern Europe, which makes the task of finding the right country from which to source product more complex.  Following these steps will enable true comparisons and robust sourcing decisions to be made.

In my experience, of conducting many supply chain reviews, across a wide range of organisations, the fundamental issue within supply chain management is ineffective communication between people, both within and across organisations.

Communication is the sharing of information and meaning between two or more parties.  Whilst systems and processes facilitate the flow of information, it is people who interpret and act upon its meaning.  It is here where so much can and does go wrong in supply chain management as there are so many people involved across functions, organisations and, with globalisation, across cultures.

Earlier this year I was interviewed on this by relationship coach Barbara Bradbury.  To listen to the interview podcast click here, then click on the play arrow to listen on-line.

I hope you enjoyed this podcast and the organisational issues it highlights.  The key points raised, in addition to those referred to by Barbara, are:

• Effective and honest communication is key to personal and organisational success

  However, effective communication cannot be assumed because there is a corporate communications strategy in place.  The test of effective communication is how well it works during times of stress and when problems occur.  If blame and finger pointing predominate then you can be sure there is a communication breakdown at some point in the chain.

• 60% of your own potential, and that of others, is there to be tapped into.

  Just think how many ideas, how much creativity lies dormant within you, your department or organisation, and how much more successful everyone could be if the release of this potential could be fostered.  Effective communication and respect for one another lie at the heart of this.

• Communication is a 2 way process.

  Be clear in your own communication really stating what you want or need and explaining why it is important to you.  Also check your understanding of others when they ask you; to do something; for help; for information.  A good point to start at is to understand what is needed by those people / departments / organisations up and down the supply chain from where you sit in an organisation.  You would be surprised how often these needs are assumed, misunderstood or not known at all.

I believe if organisations first examined the effectiveness of their operational communication and inter-personal relationships significant improvements could be achieved before embarking on major change programmes.

During the coming weeks and months I will be exploring these and other supply chain related issues in greater depth and look forward to receiving your comments and hearing about your experiences. 

If you are interested in discussing any of the subjects raised in more detail then do get in touch by email or phone.  My contact details are shown at the top of this page.  I look forward to hearing from you.

Welcome to Supply Dynamics Online, this site has been created as an information sharing and resource site for all those involved in international trade and supply chain management. 

I have spent many years working and consulting in these areas, across a wide range of industry sectors.  During this time I have developed a number of highly effective tools and techniques which I now want to share with you through articles on this site and through my consultancy, training and workshop programmes.

My aims are to bring financial and business efficiency benefits to your organisation.  My approach is primarily people focused as I believe passionately that their ideas, inter-relationships and communications lie at the heart of supply chain and international trade excellence.

I will work with you and/or the people with whom you work to:

• Facilitate understanding of international trade and supply chain issues
• Educate and train in the area where additional knowledge is needed
• Enable everyone involved in international trade and supply chain management to do their jobs to the best of their ability
• Develop sustainable solutions that work for your business

International trade and supply chain management are diverse and fascinating areas and I look forward to bringing these alive for you and helping you improve your business effectiveness.

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