Where a company exports or imports goods from international suppliers, the company will need to understand and comply with laws and regulations set out by the country’s governments. These rules are in place to allow the country to manage its trades with other countries. Employees will need to ensure they are up to date with these trade rules to avoid any fines or seizure of goods.
European logistics regulations
New trade opportunities for the EU means there has been a significant increase in freight transport. This results in an increase in noise, congestion, CO2 emissions and accidents on the road. The regulations encourage organisations to consider more environmentally friendly solutions and other modes of transport.
International Commercial Terms, or Incoterms for short, are a set of terms regulated by the International Chamber of Commerce. These terms are a fixture of many procurement processes and relate to clarify the costs, tasks and risks that are associated with transporting goods.
Incoterms are used in global trade to help create clear rules for all involved in global supply chains. These rules are used in sale contracts to help customer and supplier maintain clarity of the agreement.
Service Level agreements
Service level agreements are an agreement between a service provider and the customer which set out clearly the level of service to be provided. An SLA is a clear definition of what the customer will expect to receive, and failure to meet the conditions of the SLA can result in no payment from the customer.
Staff will need to understand how sustainability regulations can impact on the supply chain. As there is likely to be more freight used to transport goods, the EU will look to address this through encouraging organisations to approach planning and execution of the supply chain with sustainable practises in mind.
Sarbanes Oxley (SOX) compliance
The Sarbanes–Oxley Act was a law passed by The US government in the early 2000’s to improve the accountability of companies. SOX compliance is relevant to businesses with interests in US listings. Companies need to ensure they are complying with transparent accounting and audits. If a company fails to comply with SOX they can face heavy fine or even prison sentences.
Intellectual property (IP) law for Supply Chain
Intellectual Property law covers trademarks, patents, copyright for companies. Gaining an understanding of how IP law can impact on the supply chain can avoid legal ramifications. Employees who understand this can help to protect the organisation from having its intellectual property stolen by other members of the supply network.