Max HenryFounder & Executive Director, Global Supply Chain Council (GSCC) · Founder & Executive Director at Global Supply Chain Council (GSCC)

Global Inventory Management: Customs & Compliance

2 Apr 2025 · 1 min

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1:08

In this segment of the "Global Inventory Management: Customs & Compliance" discussion, the speaker explains how increased uncertainty and unpredictability in supply chains directly drive higher inventory levels. They reference APC classifications and the concept of "line‑stopper" items, noting that certain product classifications and country‑specific customs delays can become bottlenecks. To mitigate these risks, the team adjusts safety stock in affected regions and maintains close, proactive coordination with customs compliance teams. By staying abreast of evolving regulatory requirements early in the process, they aim to prevent major delays and keep inventory levels under control.

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And I think the to a large extent, the more the uncertainty, the more the unpredictability inventory is possibly something that is directly proportional. I think Kartik probably touched upon it as well when he talked about saying APC classifications and other things. We also do the same as well, and then try to look at what are the different classifications that we have, which are the ones which are probably line stoppers that we call it, and and and if we realize that it's some countries and then we see the trend that there might be custom delays and other things, we play around a little bit with the safety stocks that we try to manage in those areas. But at the same time, I think with customs also, I think a lot of times it is prone to interpretations and other things. So we also try to have our custom compliance and other teams to be really abreast with exactly what is required, you know, and then so that in order— so, so the early stage only we know exactly what the requirements are. If there are some things which are changing, we try to take care of everything right at the beginning so that we don't get into major delays after that. Thank you, Mr.