2005 Supply & Demand Chain 100 Case Study  Neiman Marcus / TradeBeam

Profiles in Supply Chain Enablement: National retailer implements import solution to more efficiently handle its product information and shipment visibility

Profiles in Supply Chain Enablement: National retailer implements import solution to more efficiently handle its product information and shipment visibility

Company: Neiman Marcus (Dallas, TX)
Company Size: Large
Company Sector: Retail
Area(s) of Enablement: Order/Demand Capture, Fulfillment/Logistics, Payment, Supply Chain Integration & Infrastructure, Decision Support
Enabler: TradeBeam (San Mateo, CA)

SDCE 100 2005Case Study:

Leading national retailer, Neiman Marcus, was faced with the challenge of getting product information and shipment visibility from suppliers, freight forwarders and carriers to enable the preparation of data demanded by U.S. customs prior to products arriving in the United States.

Specifically, the company was faced with shipment delays because of customs issues, such as pre-classification of goods prior to the entry process into the Untied States. It also had to contend with poor visibility into the integrated global order-to-entry process with exception management, penalties and fees, and the need to comply with government conditions for entry audits.

In light of such challenges, Neiman Marcus selected TradeBeam to apply a solution. To begin, TradeBeam set the following goals:
* Ensure optimum operating efficiencies and ensure compliance with all customs and regulatory agency import requirements
* Provide visibility, reporting and exception-based management of the operational aspects of global sourcing within the supply chain
* Provide seamless integration and collaboration with all business partners in the global supply chain
* Provide a new import and tracking system for consistency and integration among all business divisions

TradeBeam then suggested Neiman Marcus implement its import solution, which it said would give the retailer visibility to all portions of its import operation while ensuring compliance with increasingly dynamic import compliance regulations.

The solution includes such features as pre-classification automation, transshipment screening, assist management, customs declaration filing, trading partner collaboration, and reporting and business intelligence.

As a result of TradeBeam's import solution, which was implemented in approximately 60 days, Neiman Marcus was able to reduce duties paid, avoid regulatory non-compliance and reduce cycle time of one to two days due to pre-classification capabilities. The retailer also gained visibility to U.S. Other Governmental Agencies (OGA's) such as Fish & Wildlife, Food and Drug & Administration and Tobacco, Alcohol & Firearms shipments before entry to avoid potential penalties; had greater accuracy of classification of merchandise for duty purposes; had a greater ability to maintain a "low risk" rating from U.S. Customs that would equate to faster clearance of import shipments at time of entry; and reduced its inventory carrying cost due to reduced cycle time.

Neiman Marcus cited a time of six to 12 months to pay off its investment.

For more stories of successful supply chain implementations, read the "2005 Supply & Demand Chain Executive 100" article in the June/July 2005 issue of the magazine. Also watch the Today's Headlines section of SDCExec.com every Tuesday and Thursday for more in depth best practices drawn from this year's Supply & Demand Chain Executive 100.
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