Applying Supply Chain Logistics Technology to Improve International Border Crossing.

Government agencies in North America are in the process to increase efficiency through the facilitation of international trade. North America Freight Trade Agreement (NAFTA) is a step in the right direction by the elimination of tariffs on goods originating in member countries. The current cross border freight movement has increased drastically that create significantly congestion around and near the North America Border area. There is an eminent need to increase the efficiency of the flows of these goods between the member nations. The major objectives are to eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of the interested parties, promote fair competition in the free trade area, and Increase substantially investment opportunities. Supply Chains Management (SCM) has become the businesses lifeline in the global market. The major components include (1) integrated information network, (2) logistic network that connecting all origin of supply/demand, and all trading partners, and (3) integrated inventory control and material flow that spans multiple organizations and operations. The system must work together to avoid waste, carry minimum amounts of inventory, and provide customer competitive satisfaction in the shortest cycle time. The impacts of well-organized supply chains can be quite dramatic. For example, in US, the logistics costs as a percentage of GDP declined from approximately 17% in 1980 to just over 10% in 1993 that mirrored the inflation decline over the same period. In a similar time frame (1983 to 1997), the value of inventory as a percentage of GDP fell from 24% to less than 17%. This paper describes the Supply Chain Management (SCM) analysis being made to improve cross border freight movements among Canada, Mexico, and United States. The process can save time, reduce distribution cost of freight, and enhance customer services. This work will result in a "win-win" situation for Customs Service, customs brokers manufacturers, customers, and shippers alike. Increased efficiency in the supply chain and information flows will result in reduced processing time and waiting time for freight movements, foster seamless border crossing freight movements, reduce distribution costs, and lower product costs for end customer at the global scale. For the covering abstract see ITRD E134653.