Orange County Convention Center
Orlando, Florida | May 15-18, 2011
How GTS Will Help Create Millions of
Jobs and Keep the World Safe
Robert Waldrop:
EntryPoint Consulting
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[ EntryPoint Global Trade Practice
 Longest-standing SAP GTS Partner Practice in the US and leader in market
share and client references, including the following 42 GTS clients . . .
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Goodrich, Avaya, Microsoft, Cooper Industries, Entegris, Carefusion
Littelfuse, Nike, Perkin Elmer, Dow Corning, IFF, Grundfos Pumps
McCormick, CommScope, Tenneco, AkzoNobel, Tellabs, EFI
ITT, Heat and Controls, Citrix, Henkel, WR Grace, Conoco Phillips
Texas Instruments, Dow Chemical, Sun, Life Technologies
LSI, Medrad, NVIDIA, Rhodia, Tyson, Intel
Northrop Grumman, Bose, Danisco, Computer Associates
Fonterra , Ingram Micro, Sanofi-Aventis, Hughes Network Systems
 Practice employs industry-trained, compliance-savvy GTS consultants, each
with a minimum of five full GTS deployments, along with trade compliance
specialists supporting clients’ trade operations.
Real Experience. Real Advantage.
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[ What is Happening?
There are two major initiatives being enacted by the Obama Administration
that will impact virtually every US business:
1. The National Export Initiative (NEI)
2. The Export Control Reform Initiative (ECR)
Both have the goals of greatly increasing US exports, US competitiveness and
US jobs.
 The NEI will do this through increased promotion, advocacy and financing
to spur US exports, along with efforts to remove trade barriers and enforce
trade rules.
 The ECR will accomplish these goals by streamlining the rules and
institutions that control US exports to make US goods easier to export and
more attractive to non-US customers, while also enhancing the controls
and measures for ensuring national security and global threats.
Real Experience. Real Advantage.
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[ Why do you care?
 These initiatives will be responsible for the most dynamic period in US
trade since the passing of the Tariff Act of 1789. Though we all want the
US to achieve the above goals, what we're most interested in is whether
our company is dynamic enough to take advantage of this high-change, highexport environment.
 This will require that your company's management, employees, processes
and technology are all sufficiently nimble to keep up with these changes and
to handle your growth in cross-border transactions.
 The topic of this presentation is how SAP Global Trade Services
(GTS), along with a smart design and a strong consulting partner is your
first step in ensuring you have the organizational speed to stay in
compliance and improve your competitive position as these changes rollout
in the next few months and years.
Real Experience. Real Advantage.
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[ What is GTS?
GTS gets your products across international borders by integrating with your
inbound and outbound supply chain activity to ensure that you:
 Follow the laws applicable to your company
 Minimize your payment of duties, fees and taxes
 Communicate with customs, customers, suppliers and logistics providers
GTS provides your company the ability to drive process efficiencies and overall
competitiveness through integration, automation and standardization in the
following areas:
 Support of Future Growth/Complexity
 Supply chain and overall process improvement
 Bottom-line cost savings
 Audit Support & Risk Avoidance
 Intelligence & Reporting
Real Experience. Real Advantage.
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[ Why GTS?
You don’t need GTS in much the same way you didn’t need SAP before you
had SAP. You can outsource, perform manual processes and self-blind.
You don’t need GTS if:
 You derive no cost benefits or competitive advantages from your supply
chain
 You’re not planning to expand your geography, product lines or distribution
channels anytime soon.
 You believe that the cost savings you got from outsourcing outweighs the
loss of control and visibility of your global operations.
 You have a cheap compliance team, but expensive lawyers
Real Experience. Real Advantage.
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[ Why is GTS different from competitors?
Why is GTS different?
 GTS provides the framework for controlling, calculating and communicating
against any trade regulation, for any company and any country.
 If done well, it becomes the world’s most nimble, most robust global trade
solution.
Licensing
 It’s a big matching tool. It’s a business rule generator. It’s how you
separate exceptions from rules.
 Just for the US, it controls shipments under ITAR, EAR, OFAC, FDA, FCC,
DOA, NRC, DOE, DEA, TSCA, ATF and ITA.
 It can support any global, regional, country, state, local, company regulation
or rule.
Real Experience. Real Advantage.
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[ Example 1:
Encryption Regulations
 Major changes in 2009, 2010, with continued changes this year and next will
make it faster and easier to export most encryption products, while not
removing a single word from the overall regulations.
 With the last change, there are now 17 ways you can treat an encryption
product under US regulations.
 Each change requires that you adjust how you control and report on your
encryption exports (and sometimes, imports).
 Every country has different regulations, and exports from these other
countries often require US regulations to also be applied.
→ GTS allows each of these changes to be easily reflected in the software with
just a few intelligent tweaks to master data and configuration. No waiting
for your vendor to reflect these changes in their software and no need to
block all orders so they can be reviewed against the new regulations.
Real Experience. Real Advantage.
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[ Example 2:
Free Trade Agreements
 The US has free trade agreements (FTAs) in place with 17 partners, with
three more being worked on as part of the NEI.
 Up until the last version, GTS could support trade with just two of these
partners. It can now support trade with all of them.
 A major emphasis of the NEI will be expanding existing agreements,
activating new ones and promoting their use (while aggressively enforcing
their proper use).
 It is extremely difficult to take full advantage of FTAs while remaining fully
compliant with the regulations using manual processes.
 GTS allows you to institute a single structure and workflow to support all
of your agreements.
 GTS will allow you to take direct financial benefit of your products’
preference status and provide this benefit to your customers.
Real Experience. Real Advantage.
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[ Example 3:
ITAR and EAR Consolidation
 The ECR Initiative will develop a new Single Control List
 Will replace both dual-use (EAR) and military (ITAR) lists
 Will replace flat lists with tiered structure to define level of control
 Products will be classified based on measurable qualities as opposed to use or
design intent.
 How products are classified and licensed will be radically changed, which
would happen over time (it has already started).
 GTS allows each of these changes to be easily reflected in the software with
just a few intelligent tweaks to master data and configuration. No waiting
for your vendor to reflect these changes in their software and no need to
block all orders so they can be reviewed against the new regulations.
Real Experience. Real Advantage.
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[
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Real Experience. Real Advantage.
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