Miriam-Webster’s Dictionary defines “metric” as a standard of measurement. At first glance you might be inclined to think it is difficult to apply metrics to international trade compliance activities like you would to the number of widgets produced or the number of trucks unloaded in a month. However, not only can metrics be applied to trade compliance, when applied effectively they can be used to help to drive process efficiencies, provide visibility and promote the efforts of the trade compliance group to the executive team and throughout the entire organization.

Metrics should be used as a tool to help gauge a process and help identify trends—positive or negative. The metrics you choose should be measurable and add value. Think of all of the activities the compliance group engages in daily. Work through these tasks and further define the ones you feel will provide you, the executive team, and your organization valuable information.

The metrics you develop are tools to help you quickly assess and communicate what is occurring in your daily compliance activities. Do not spend time developing a metric that does not add value or provide essential information. The goal is not to have metrics for the sake of metrics.

Over time metrics can be an invaluable resource of information. For example, right at your fingertips you will know exactly how many entries the team handles per month, how the products are coming in at each port, and the total entered value by mode and by port.

By capturing and trending this information you are in position to identify process gaps that may be affecting import-export compliance. In addition, you may identify other possible inefficiencies affecting the supply chain such as the influx of expedited freight, which may be an indication of supplier fulfillment problems or a higher percentage of entries requiring entry documents or intensive exam at a certain port of entry.

You may wish to create import metrics that track the total number of entries by method of transportation and by port; the percent of entries that were entered paperless, EDR or intensive; and the total entered value by mode and by port. This information should be readily available from your broker on a monthly basis and can be quickly and easily compiled and graphed using Excel.

Export metrics could include the number of exports by country, method of transportation, value, number of AES entries, transit times, percentage of exports requiring an individual validated export license, and export order processing times.

Once defined, metrics can be used to help support compliance initiatives such as an importer self-assessment program and drive efficiencies through continuous improvement. Additionally they can be useful in validating the need for additional staff and used to gauge the overall efficacy of the compliance organization.

Metrics can be an invaluable tool assisting in, addressing and possibly averting potential supply chain disruptions. Metrics can provide a wealth of valuable information to you and your executive team while bringing visibility and awareness to the critical nature of the activities performed by trade compliance personnel.