Today, some industries handle extra complexity while shipping their commodities to their customers. In this blog post, VLC Solutions will help you understand the top five reasons behind the need for automated compliance solutions and screening in high-tech and industrial manufacturing companies. But before diving headfirst, let us know the importance of the feature- restricted party screening in global shipping platforms.
The Vital Logic behind Restricted Party Screening:
Learning who your trading partners are and that the products being shipped are meant for your authorized customers with good-natured intentions is essential when heading the operations or logistics department of a high-tech or manufacturing establishment. National and regional governments, federal agencies, law enforcement bodies, and trade controllers around the world push companies to ascertain the identities of their trading partners. They do this as it helps them locate terrorist and criminal establishments.
To adhere to export regulations, industrial manufacturers have to guarantee that their trading partners do not have any sanctions on their name or fall under any denied party lists (DPLs). Furthermore, they ought to confirm if an object needs an export license and assure that the people or locations that have purchased their products are qualified to obtain them. In the case of not complying with such measures and not using a robust restricted party screening process, enterprises can meet stringent penalties. Here are five main reasons why manufacturing organizations must employ denied party screening.
1) Safeguarding Stature
It is obvious that no industrial manufacturer would hope to see their firm or brand being linked to a terrorist invasion or criminal onslaught. Denied party screening is, therefore, an integral element of your brand safety and risk alleviation scheme.
Automated compliance solutions such as screening processes can stop your products from slipping into evil hands and also helps depict that you exerted due diligence to thwart that from taking place. Denied party screening and compliance checks are central components of the audit trail, enabling you to ascertain that you have accomplished your role to uphold the safety of your shipments.
2) False-use Susceptibility of Certain Products
A few sectors are prone to added complexity when their products are shipped to their customers. Some examples of such industries are high-tech, life sciences, industrial manufacturing, etc. This sophistication is because of the likelihood of abuse of some products.
The best instances of such products are electronics and components that seem unobjectionable and safe enough but usually encounter constraints. Likewise, shipping such commodities may initiate a license provision. This is because offenders, terrorists, or other perpetrators could utilize their parts in totally unintended or harmful ways.
3) Regulating Voluminous B2B E-commerce Needs
The volume of B2B E-commerce is growing drastically, which makes it more formidable to secure products from being misused. Businesses that operate with third-party fulfillment or external shippers must be conscientious about guaranteeing that their products don’t end up with blacklisted people or entities.
When access to foreign markets increases and lesser physical exchanges become the norm, a tremendous duty arises to strengthen the safety and security of each product and shipment. By relying on robust automated trade compliance screening, firms can save time, sidestep penalties, and make sure that their trading associates are respected as they expand their global presence.
4) Necessities of Suppliers
Most electronics and parts suppliers are discovering themselves under the scrutiny of regulatory bodies, and even the penalties for trade compliance breaches have become pricier and stringently executed. Suppliers are made accountable for assuring that their products are not used for illicit purposes.
And suppliers are further placing this responsibility upon their customers, making distributors purchasing products from them enforce trade compliance. And automated trade compliance software assists industrial manufacturers in aligning with these supplier necessities. Therefore, this caters to strengthening business relationships and stemming revenue losses.
5) The Glut of Sanctioned List Data
The published DPLs of approved parties and regulated products are prone to regular change. However, maintaining a manual track of changes to these lists can be time-taking and labor-reliant. This can make companies slack a bit about revamping their data when implementing these checks.
At such a juncture, automated compliance solutions and screening software ease the entire process. It taps into real-time and updated information from the published lists of sanctioned parties, guaranteeing that your screening function is made free from breaches yet works immensely fast, thus enabling seamless and safe global shipping conditions.
VLC’s smart solutions take security at individual, organizational and national levels quite seriously. This is why we design our products and their extensions in a manner where robust security features are seamlessly fabricated within the solution. Our application, VLC Smart Shipping, comes with a resilient restricted party screening feature that ticks all the boxes of the factors discussed above. Talk to our team today to discuss your needs and how we can be of help to your unique business security needs.