Evaluating strategies for cost reduction in SCM relating to exports and imports
ABSTARCT :
In today’s globalized economy, the role of supply chain management (SCM) in international trade has become more critical than ever. As businesses increasingly rely on cross-border trade to remain competitive and expand their market reach, managing the cost implications of exports and imports has become a top strategic priority. SCM involves the planning, coordination, and control of all processes related to sourcing, procurement, conversion, and logistics. These processes become more complex in international trade due to varying regulations, customs procedures, transportation challenges, and currency fluctuations. The export and import components of SCM are particularly cost-intensive because they involve multiple intermediaries, long lead times, and geopolitical risks. In this context, effective cost reduction strategies are vital for ensuring profitability and sustaining competitive advantage.
This study seeks to evaluate and analyze various strategies that companies can adopt to reduce supply chain costs associated with exports and imports. These strategies may include the use of technology such as automation and artificial intelligence, optimization of logistics and transportation, implementation of lean inventory practices, consolidation of shipments, and adoption of Incoterms and trade agreements to minimize customs duties and tariffs. Furthermore, leveraging data analytics for demand forecasting and supplier management also plays a significant role in cost containment. Strategic sourcing and building resilient supplier networks help mitigate risks that can otherwise lead to costly disruptions.
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