Customs Broker Integration Framework

In our world, everything is connected, and global trade plays an important role. Supply chain and logistics are the core of the operating model of manufacturing companies as they help them navigate the international business and return the revenues desired. The central part of the worldwide supply chain involves various indirect actors such as customs authorities, customs brokers, freight forwarders, and carriers. Even though the term digitalisation is hyped across the global trade spectrum, the rate of adaptation is only around 76% in international trade (Deloitte, 2017). Digitalisation is mainly applied in global trade management software. However, it is often forgotten that even if companies say they are digitalised, various in-direct actors who play a role in the end-to-end supply chain activities also need to participate in the digitalisation exercise. One such supply chain activity is the customs operation. The transaction cost in international trade is higher for the conventional than digital customs clearance mode due to various actors participating. The trade leaders of multinational companies work towards achieving an equilibrium in minimizing the cost of the trade and adhering to compliance to become the strategic partner for the business. This thesis brings forward such a case where the misfit of the GTM software and the business demand on the customs broker integration. As significant companies operate globally, they need a global strategy to determine the customs broker integration approach and a localised adaptation policy to draw a workable framework. The strategy and localised policy elements are divided into functional and technical parts. The functional part addresses the aspects of the policy, operations elements and technical part of the IT. To help create a framework, this thesis uses design science methodology and performs a case study of a global trading company and analyses what issues they face with indirect actors (Customs Broker) on integration to a GTM. The framework is tested by using it on the implementation project and review panel. We conclude with the recommendations and steps to be taken by the organization on such customs broker integration.