Key Performance Indicators (KPIs) or metrics are used by successful companies to calculate aspects of their 
performance. Usually, these KPI’s or metrics apply to marketing, manufacturing or sales. However, they could and must be used in import and export compliance functions too.
If applied effectively, trade compliance metrics enhanced efficiency of processes, provides good visibility and promotes the effort of the trade compliance group to the executive team and throughout the entire organization.
How Compliance Operations Can Improve With Metrics
The metrics created by you are the tools which will assist you in quickly assessing and communicating what is happening every day in your compliance group. You need to create metrics that would provide information or add value which would result in improved performance.
Metrics can be invaluable over time. For example, you would be able to know in an instant as to how many entries the team handles per month, how the products have arrived at every port, and the total and the full value entered by port and by mode.
You will be able to identify the gaps in the process which are impacting the import and export compliance by capturing and trending the information. Additionally, you could also recognize other probable inefficiency which are impacting the supply chain like influx of expedited freight – which might indicate supplier fulfillment issues or a bigger percentage of entries that requires intensive exam or entry documents at a specific port of entry.
Examples of Compliance Metrics
You would also like to develop import metrics which track the total number of entries by method of port and by transportation – intensive or EDR, the full value entered by port or by mode; and the percentage of paperless entries which were entered. This data must be readily available from your broker on a monthly basis and could be easily and quickly collected and graphed with the help of Excel.
The export metrics can consist of export order processing times, percentage of exports requiring an individual validated export license, transit times, number of AES entries, value, method of transportation and the number of exports by the country.
Metrics, once defined, can be used to assist support compliance initiatives like an importer self-assessment program and drive efficiencies through continuous improvement. Moreover, it can be used to explain additional staff and to measure the overall effectiveness of the compliance organization.
Also, metrics can assist in addressing and averting possible potential supply chain disruptions. They can supply a large amount of critical information or data for you and your executive staff and bring awareness and visibility to the crucial nature of activities performed by trade compliance personnel.
To get a better understanding of key performance indicators for import-export management, join a live webinar by expert speaker Douglas Cohen, where you’ll learn how to use metrics to track your imports and exports for performance improvement.
