The client – a U.S. importer of perishable goods from Europe – found its business under threat from regular delays in customs clearance. The delays significantly increased delivery times to demanding customers, making it virtually impossible to carry out just-in-time inventory management, and heightened the risk of spoiling the perishable goods leading to major losses.
To rectify the serious logistics problems the client was experiencing, we immediately determined it was critical that the client participate in the Customs Trade Partnership Against Terrorism (CTPAT). This program creates a close working relationship between companies and U.S. Customs by ensuring those companies implement the supply chain security measures that Customs desires. In return, Customs provides a number of critical benefits including a reduced number of Customs examinations, accelerated customs processing times, and expedited border crossing privileges.
After the client successfully completed the application process for CTPAT, it encountered reduced delays and customs inspections, allowing shorter delivery and border crossing times. This in turn reduced risk and logistics costs while enabling the client to implement more efficiently its just-in-time inventory management strategy. Above all, CTPTAT participation mitigated the very serious risk of the client’s goods perishing in transit.