Trade Compliance in your Ecosystem
Why is Trade Compliance popping up in the Ecosystem material so often? You can find it in videos, guides and blog posts. Surely, we have just a Business Cooperation so why do we have to care?
Well the answer to that question is, it depends. Firstly it depends on the Business Relationship you have with the other companies in the Ecosystem. Secondly it depends also on what type of sell-able object that you are dealing with. Thirdly especially what type of regulation frame-work is in place for commercial transactions for that object.
Let us look into this very important area of Trade Compliance a little more.
Trade Compliance Aspects in your Ecosystem
Trade Compliance needs to be addressed when you work with your strategy for your Ecosystem. Maybe you need to strengthen your skills set in the area. What to do depends on what type of Business Relationships you want to set up in your Ecosystem. Failure to do so could jeopardize the future of your company and for yourself. Consequently prepare your company for the Business Cooperation.
You need also to understand the Business Value Chain for your business relationships. Who is selling to whom in what country. What requirements and risks will this impose upon your Business? Thus you need to create a structure where you can mitigate and manage the risks.
Be sure you have analyzed and created the Trade Compliance Plan for your activities in the Cooperation’s. There are different requirements on physical goods, digital products and services including who can deliver them. What responsibilities do you have and what is valid for your Supplier or Partner? You must secure this with your Supplier/Partner in agreement.
Requirements on your Supplier or Partner
It takes two to tango it says, so you need to be aware of the requirements on your Supplier or Partner with respect to Trade Compliance. In addition you need to assess that they are capable of living up to them as well. Otherwise you will not be able to secure the Product Provisioning you need for your Market Story.
Managing the Trade Compliance in your Ecosystem is crucial since it gives you the frame-work for your commercial operation. Firstly you need to know your responsibilities as well as what is expected from your Suppliers or Partners for running the ecosystem. Secondly you need also to assess that your Suppliers/Partners can live up to their expectations.
Some more advice (Links)
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