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Case Study

Automotive Supply Chain Drawback
A major US auto manufacturer with a highly diverse supply chain consisting of hundreds of suppliers and millions of parts sourced globally significantly enhances drawback program.

Challenge

The client’s duty drawback program heavily relied on their supply chain, necessitating cooperation from vendors to provide the required import data for filing claims. However, several major suppliers were unable or unwilling to provide the necessary information, claiming they could not identify which imports were sold to the client from their own activities.

Solution

J.M. Rodgers (JMR) developed an innovative solution by leveraging the client’s TS856 Advanced Shipping Notices (ASNs). 

  1.  Utilizing ASNs: The ASNs detailed what was received by the client from each specific supplier, allowing JMR to see the full scope of supplier-provided products, even without direct cooperation from the suppliers.
  2. Data Integration: JMR’s IT team connected the ASN data with the suppliers’ import data, aligning the information on a FIFO (First In, First Out) basis by part number.

     

Results and Benefits

This solution significantly enhanced the client’s drawback program:

  • Expanded Supplier Participation: Nearly a hundred previously non-participating suppliers were integrated into the program.

  • Increased Refund Claims: The client’s refund claims increased by over 75%, thanks to the inclusion of additional supplier data.

 

Photo by carlos aranda on Unsplash