A Customs Brokerage (ACB) is a high-volume third-party logistics provider (3PL),
ID: 427645 • Letter: A
Question
A Customs Brokerage (ACB) is a high-volume third-party logistics provider (3PL), Non-Vessel Operating Common Carrier
(NVOCC), and international freight forwarder that provides full-scale logistics services including end-to-end import and
export forwarding, customs brokerage, direct consolidation services, local and national trucking, insurance and ware-
housing. Services range from local delivery to large-scale multimodal project cargo. The company also maintains a fleet
of trucks through its subsidiary Mantra Trucking, Inc. and through its network of carriers, transports and distributes Full
Container Load (FCL) and Less-than-Container Load (LCL) shipments to some of the largest importers and exporters in the
Americas.
Challenge
A Customs Brokerage was approaching a critical threshold that required added automation in its operations. According
to Gabriel Rodriguez, President at A Customs Brokerage, “We have seen a consistent growth trend year-over-year, even
reaching a double-digit growth rate throughout the economic downturn. The business was reaching a stage where ad-
ditional automation and systems integration were needed in order to maintain the highest caliber of customer service”.
Mr. Rodriguez adds, “However, the number of technology providers we were using seemed to increase in parallel to our
business growth. This meant that in order to effectively track and clear a shipment, a representative would need to switch
to different technology systems and various methods of record keeping. The constant shift of context and focus was inef-
fective.”
As a result of the numerous technology systems in use, ACB was experiencing a fragmented view of logistics visibility and
higher IT maintenance costs. He continues, “The multi-vendor, multi-process system was not working for us. We began to
look for a higher level of service offering when we were unable to achieve our goals using existing solutions.”
Inefficient Usage EffectiveUsage
Utilizing multiple technology
providers caused staff to
shift context and focus and
resulted in additional cost
outlay.
Time Time
Customer Success Story
ACustomsBrokerage(ACB)
In
P
ease
cesse
Provi
over T
Business
Growth
cr in ders/
ro s ime
Business
Growth
Single
Provider
When searching for a new logistics technology platform, A
Customs Brokerage contacted a number of logisticstechnol-
ogy providers. After a thorough evaluation process, ACB se-
lected Descartes to manage itsinternational freight forward-
ing, customs house brokerage, security filing and accounting
functions using options within the Descartes OneViewTM For-
warder Enterprise and Descartes OneViewTM CHB solutions.
Descartes’ implementation team fully trained the staff to en-
sure a successful rollout, “Having used a number of logistics
technology solutions, I have seen first-hand the degree of
outstanding services and domain expertise shown by Des-
cartes,” he continues, “The expertise of Descartes on-board-
ing and technology support teamsis world class. The support
islocal, and the implementation team hasshown a long-term
commitmentto the successofour business.”
Shifting the Bell Curve
A Customs Brokerage also noted that its business model is
one of itslargest competitive differentiators. “We can handle
any size shipment and have an enormous variety of clientele.
ACB hasseen the greatestsuccess by serving mid-size clients
simply because they comprise the majority of importers and
exporters in the industry. However there are still so many
business opportunities outthere.”
“We have seen a 25% increase in volume since implement-
ing Descartes’technology. Descartes currently manages 95%
of our business operations, the technology and automation
offered by Descartes helped us not justincrease the volume
of customers, but gave us an opportunity to grow our range
of service offerings. This has helped drive our business to a
higher level of operational efficiency and added to our mis-
sion of being a cargo concierge”.
“Throughout our 8-year relationship with Descartes, we have
doubled our customs-bonded warehouse operations from a
25,000 sq ft building into a 50,000 sq ft location. There is so
much potential we can tap into with Descartes and this is a
direct correlation to the level of customerservice we are able
to offer our clientbase.”
Descartessolutions havehelpedACustomsBrokerage increase its
volume of customers and range ofservice offerings.
1) What are the main issues that the company is currently facing? Why?
2) Do any of the international trade players that were studied have an impact on the
processes and solutions of this organization? Explain why or why not?
3) Which specific customs regulations would apply to this company and its operations?
Why or why not?
4) Recommend additional potential solutions that ACB could implement. Do you foresee
any restrictions from a customs standpoint on the proposed solution(s)? Why or why
not? Elaborate.
Explanation / Answer
1.The main issues that the company is facing is related to technology integration and automation which is costing the company its time and its labor while also leaving the worker confused over switching technology use resulting fragmented view of logistics visibility and maintaining cost.
2.Descartes was selected as company which could provide for technology logistic solutions and thus created impact on the processes and solutions of this organization by offering services like international freight forwarding, customs house brokerage, security filing and accounting functions using its OneViewTM Forwarder Enterprise and OneViewTM CHB solutions.
This resulted 25% increase in volume which led to company managing 95% ACB business operations. Descartes helped the ACB to increase its client fold, use of the technology and automation, increase range of service offerings. Descartes ensured that the workers of the custom brokerage get to know the use of technology and automation.
3. Automation and technology integration is two important things that the Custom brokerage needed for its export and tracking and visibility system as absence of this led to the problem of confusion and fragmented logistic technology and due to this high maintenance cost and waste of time and lobor.
4.Additional measures as to making of right strategy can be done which will list out all necessary thing which can be done to improve efficiency like maintaining a maintenance contract with Descartes and regular update on technology and automation while also ensuring the right kind of the people are recruited for the business operation in custom brokerage.
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