Learn. Share. Achieve.
More Effective Data
Analytics for Trade
Miami Beach, Florida
May 6, 2014
Notices
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The information contained herein is of a general nature and based on authorities that are
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©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member
Data & Analytics –
Driving Value through
Trade and Customs
Presenters
Amie Ahanchian
Managing Director
Tom Barnes
CEO
g g
KPMG’s Trade and Customs practice
Washington, DC
Integration Point
Charlotte, NC
Scott Weisbecker
Partner
KPMG’s Tax Practice
N
Y k NY
George Zaharatos
Managing Director
KPMG’s Trade and Customs practice
Atl t GA
New York, NY
Atlanta, GA
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member
Data & Analytics – Driving Value through
Trade and Customs
The possibilities of Big Data
How do we currently use Data and Analytics
(D&A) in trade?
Th f t
f D&A i t d
t
The future of D&A in trade management
Communicating opportunities and risks
through D&A
through D&A
Benchmarking Results
Q&A
Q&A
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member
The Possibilities
of Big Data
The Possibilities of Big Data
Five Key Points for Generating Business Value From Data & Analytics
Business has
fundamentally changed
– your competitors (known and unknown) are
harnessing data to drive growth and profitability now.
∆
∆
g
g
p
y
A data-driven organization embeds the ability to harness data in
every aspect of its business
,
including how decisions are made, how processes are operated, and how people are enabled.
Data is
raw material
that becomes valuable through the use of analytics. Big Data requires
advanced analytics and technology to capture the value.
Data and analytics is not simply about technology. A
business problem orientation
helps to
zero in on the right data and apply the right analytics to generate tangible value.
g
pp y
g
y
g
g
New opportunities, new risks – while data is a valuable asset, new uses of it pose new risks –
organizations need to carefully balance them.
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
How Do We Currently
Use D&A in Trade?
Amie Ahanchian
Amie Ahanchian
Managing Director
KPMG
Tom Barnes
CEO
CEO
Integration Point
How Do We Currently Use D&A in Trade?
Effective analysis of data can contribute to a robust program for adding value
Areas supported through data analysis
•
Free Trade Agreements
•
First Sale
Cost Optimization
Cost Optimization
•
Minimizing compliance
risk
Compliance
Compliance
•
Managing resources
•
Identifying internal
Process Efficiency
Process Efficiency
•
Reporting identification
of opportunity and risk
t
t
Metrics Reporting
Metrics Reporting
•
Foreign Trade Zones
•
Duty Drawback
•
Value Unbundling
Entry Consolidation
•
Penalty Avoidance
•
Bad Press
•
Third party service
providers costs
y g
personnel savings
•
Managing Faster
Customs Clearance
•
Business growth
to management
•
Managing FTE
headcount to match
business needs
•
Mitigating risk
•
Entry Consolidation
•
Self Filing
•
Broker Consolidation
•
Periodic Monthly
St t
t
•
Avoidance of criminal
charges
•
Maximizing FTAs
•
Refunds on downward
•
M&A support
•
Interdepartmental
communication
•
Value Reconciliation
•
Mitigating risk
•
Metrics
•
Recordkeeping
•
Global consistency
Statements
•
Defective Merchandise
•
Special use provisions
TP adjustments
•
Accurate cash-flow
•
Reduction of costs
relating to audits and
information requests
•
Business certainty
•
Faster identification of
opportunity and risk
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
How Do We Currently Use D&A in Trade?
Where do we get the data?
Trade data may be available from government authorities,
internal systems, and service providers.
ITRAC/ Gov
Data (Select
Countries)
CIT Cases
(U.S.)
Government
AES
(U.S.)
FIRM
(CA)
ERP Data
(Global)
Government
Statistics
(Global)
Public
databases
(Global)
(
)
Customs
Broker Data
(Global)
GTM Data
(Global)
AMS-based
3
rd
party data
(U.S.)
(Global)
WMS Data
(Global)
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Correlating the data among sources and with
other external data can drive value!
How Do We Currently Use D&A in Trade?
Where do we get the data?
Disparate Systems?
H
M
?
How Many?
−
Different by:
Division?
Division?
Geography?
Broker?
Oth
LSP ?
Other LSPs?
Trade Program?
What’s correct? What isn’t?
You can’t analyze what you can’t see
How do you get Started?
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
How Do We Currently Use D&A in Trade?
Common Misconceptions
I have to fully control things first
I
d t
h ll i f
ti
t
−
I need to push all information out
−
I need to get all of the data perfect first
−
I need to flip the switch everywhere at once
−
I need to flip the switch everywhere at once
Unstructured data does not help me
Unstructured data does not help me
It will take too many internal resources
I’m going to wait until a standard is created
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent memberThe Future of D&A in
Trade Management
The Future of Data Analytics in Trade Management
If you could access all of your data
What could you do?
E
li
−
Ensure compliance
−
Measure KPIs
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member
The Future of Data Analytics in Trade Management
Post Entry Validation - Optimized
Post Entry
y
KPIs
Validation
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The Future of Data Analytics in Trade Management
If you could access all of your data
What could you do?
E
li
−
Ensure compliance
−
Measure KPIs
−
Improve efficiency
−
Improve efficiency
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member
The Future of Data Analytics in Trade Management
Improve Efficiency
US Exports
US Classification
UK Broker
CN Broker
EU Korea FTA
BOMS
NAFTA
CN Classification
MX Maquila
BR Broker
ZA Imports
AU Classification
Inefficient
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The Future of Data Analytics in Trade Management
Assimilate Data
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The Future of Data Analytics in Trade Management
Analyze Data
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The Future of Data Analytics in Trade Management
Leverage Data
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The Future of Data Analytics in Trade Management
If you could access all of your data
What could you do?
E
li
−
Ensure compliance
−
Measure KPIs
−
Improve efficiency
−
Improve efficiency
−
Find savings opportunities
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member
The Future of Data Analytics in Trade Management
Potential Savings Opportunities
Potential Duty Savings
Preference Program Eligibility (FTAs)
D t D f
l P
Duty Deferral Programs
Duty & Supply Chain Benefits
ENTRY SUMMARY
BY COUNTRY
BY HS
TARIFF SCHEDULES
TRADE AGREEMENTS
IMPORT RESTRICTIONS
BY HS
BY MOT
BY BROKER
ETC…
IMPORT RESTRICTIONS
EXPORT RESTRICTIONS
VAT RATES
PREFERENTIAL RATES
GLOBAL TRADE
GLOBAL TRADE
CONTENT
CONTENT
167 COUNTRIES
167 COUNTRIES
GLOBAL
GLOBAL
ENTRY
ENTRY
DATA
DATA
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The Future of Data Analytics in Trade Management
Where are we headed using data analytics in trade?
Most organizations are now in process of developing data-driven
organizations by:
organizations by:
Collecting data globally
Correlating and analyzing data elements from various sources
I
l
ti
l b l t d
t
l ti
Implementing global trade management solutions
The future of D&A in trade is zeroing in on the right data and
applying the right analytics to generate tangible value
Auditing of trade activity will be enhanced through advanced risk
profiling
Operational compliance dashboards to monitor and report risks and
opportunities
Collaboration among business support functions to collectively mitigate
risk and increase opportunity (i.e., Operational Transfer Pricing)
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The Future of Data Analytics in Trade Management
Communicating data
How data is communicated greatly influences
management decisions
management decisions
If your data findings are not clearly communicated, your
analysis may not have the intended effect on your
analysis may not have the intended effect on your
audience.
Graphics expedite and increase our level of
Graphics expedite and increase our level of
communication and are an effective way to influence an
audience.
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The Future of Data Analytics in Trade Management
Communicating data
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Benchmarking
KPMG’s Global D&A Benchmarking
KPMG commission FT Remark to survey 144 CFOs and
CIOs from major corporations around the world
The responses from the August 2013 survey were
aggregated in a report
©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.