Suppose you’re waiting for a shipment of important components for your new product. The launch date has been set, and every day of delay costs you thousands. Then, disaster strikes. Your shipment gets stuck at customs. Why? Due to inaccurate export-import data.

This is not something no one wants to happen. Inaccurate trade data disrupt the supply chain, churning out expenses, time, and, potentially, your company’s reputation.

Export-import trade data is the information that is generated when goods are imported or exported. This may include things such as the value of goods, the quantity of the items, and even the type of goods.

When it comes to trade figures, getting wrong data can create confusion in your supply chain. Let’s explore some of the key consequences:

Consequences of Inaccurate Export Import Trade Data

Inaccurate export import trade data can throw a serious wrench in your supply chain operations. Let’s explore some of the key consequences:

Delays in Customs Clearance: This is a major headache. This is because if the classification of your goods is incorrect or the documents you filled are wrong, the customs will most likely have your shipment searched. This can lead to more delays in shipment movement and sometimes even delay an entire production line.

Increased Transportation Costs: The transportation costs will go through the roof when your shipments are delayed. To transport your goods, you may be charged additional storage costs, demurrage costs, and even carrying costs to get your goods moving again.

Inventory Issues: It costs a lot of money to manage inventory. If you underestimate demand, you end up having a stockout, which means zero sales and angry customers. On the other hand, where demand is overestimated, this causes inventories to build up, consumes most of the capital, and increases storage expenses.

Financial Losses: The costs of having wrong trade information are steep. Misclassification of products results in increased import duties and taxes that are imposed. You might also be punished or even fined for failing to stick to trade laws or regulations.

Reputational Damage: No company wishes to have a bad reputation for late or delayed delivery or poor quality service delivery. Both can be explained by inaccurate export import data. Delays in delivery, stockouts, and product quality problems arising from supply chain disruptions affect the market image of the firm.

National Security Risks: Although this may not appear to be as important to the companies in question, wrong trade statistics can be quite harmful to national security. It can hamper the tracking of the movement of goods that have national security considerations, and this will make it a hard task to note threats.

The Benefits of Accurate Trade Data

Now, let’s talk about the bright side also. The huge advantage of having correct trade statistics at such a time is:

Improved Supply Chain Visibility: Genuine trade data can offer you unparalleled insight into your entire supply chain. You can track your shipments in real-time, from the moment they leave the origin to their final destination. This gives you the ability to address these risks in advance, such as a delay at customs.

Reduced Costs: This is where most of the work is really done. With the help of accurate data, you can efficiently order your goods and avoid both cases where you have to keep a large portfolio that is costly to maintain and cases where you do not have key stocks and components when they are needed. It also enables you to obtain better freight rates from the carriers by predicting the demand rates and shipment volumes accurately.

Increased Revenue: When your supply chain is running smoothly, then your customers are happy. Timely deliveries are achieved through accurate export import data since customers prefer goods to be delivered at the agreed times; hence, they would buy more. Further, accurate data will enable you to define new markets with potential and expand your geography.

Enhanced National Security: Trade statistics are therefore considered to be very useful in national security processes. It makes it possible for the government to keep track of movements of goods which is vital for security of borders counter terrorism and control of substandard goods.

Compliance with Regulations: Trade statistics are critical in ensuring trade compliance, which is characterized by complicated regulations. The issues of proper classification of your goods and record keeping will let you and your business stay away from paying the corresponding penalties and fines, thus staying legal.

The accurate international trade data is important; it allows you to make sound decisions, operate more efficiently, and create a stronger, more sustainable supply chain.

Strategies for Improving Trade Data Accuracy

One question might come to your mind. Well, how can we make our trade statistics accurate? Here are a few key strategies:

1. Data Collection and Standardization:

• Implement Standard Methods: The idea is to standardize the methods used to collect data on your supply chain processes across your organization. This means everyone involved, from suppliers to carriers to customs brokers, is using the same terminology, classifications, and units of measurement.

• Leverage Technology: Implement electronic data interchange (EDI) and other technological devices that will enhance the collection of data and prevent mistakes that occur from manual entry.

• Collaboration is Key: Encourage the government agencies, enterprises, and trade organizations to cooperate closely to formulate and promote appropriate formats of the data and the related exchange procedures.

2. Data Quality Assurance:

• Data Validation and Cleansing: Establish solid data validation and cleaning processes to identify and eradicate errors, inconsistencies, and missing data.

• Regular Audits: Conduct audit and data quality Check on a regular basis to make sure you have the data you need.

• Train Your Team: Train your team about the value of data accuracy and how to enter and maintain your data in good faith.

3. Technological Advancements:

• Take the Power of AI: Use artificial intelligence (AI) and machine learning (ML) algorithms to analyze huge volumes of trade data, discover patterns, and predict potential disruptions.

• Utilize Blockchain: Learn how blockchain technology has the potential to improve data security, transparency, and traceability throughout the supply chain.

• Invest in Data Analytics: Study successfully implemented advanced data analytics tools and platforms, helping to generate data analytics-enhanced insights into your trade data and to make better business decisions.

Conclusion

Today’s global economy depends more on accurate trade data than ever before, and getting it wrong is simply not an option. If the data is wrong, this can cost business delays, lost revenue, and a spoiled reputation; if the data is right, it allows opportunities to optimize their operations, increase customer experience, and be more competitive.

The broad export import data solutions of Dataversee help you unlock the full potential of your trade data and provide you with a competitive advantage. Our high-quality, real-time data can help you:

Identify new market opportunities. It helps discover emerging markets and to gain insights about competitive market activities.

If you haven’t done so already, now is the time to visit us and ask for a free demo to see exactly how our export-import data solutions can make your business better.