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Importing and exporting is a costly business in terms of complying with all the International documentation requirements. Now the SAFE Port Act will require additional information prior to a ship sailing to an U.S. port. The security filing initiative of this act is called 10+2 because it requires 10 data elements from the importer and 2 data elements from the carrier before a ship sails to an US port. Technology such as EDI and electronic data exchange can solve a lot of things, but it can also support a bureaucracy. I am all for supporting the Homeland, but I would hope some smart people figure out a way for us not to stifle free trade. See SourcingInnovation’s post: 10 + 2 = 690,000,000 for more information.

I see that Savi Technology, an active RFID tag provider, has spawned a communications and information services company that provides near-real-time visibility to international shipments regardless of carrier. I see a good business case for using this shared RFID network. Benefits include: proactive container security monitoring, auditable chain of custody, proactive temperature monitoring, comprehensive shipment tracking, “virtual inspection” of shipment and contents, timely information to re-route shipments, dynamically allocate inventory in-transit, manage transportation based on actual asset movements, and streamline customs clearance.

I see SaviNetworks as a niche communications company that provides high value to international shippers that need positive control over their transportation services as well as positive control over the assets that they are shipping. See more on the benefits of SaviNetworks.

Supply chain requirements are changing. Not so much because of technology or operational issues, but because financial stakeholders are taking a renewed interest in company’s’ supply chains. Due to increases in international trade and increased competition, bankers, CFOs, investors, and financial institutions are keenly interested in a company’s supply chain. Additionally, Governments are more involved due both for gleaming additional tax revenue from International trade, but also in the area of security in the wake of 9/11. See SupplyDemandChain article, Ready For Prime Time, for more on how bankers are taking a keen interest in supply chains.