SHIPS ROI (Return on Investment) Analysis
I. Cost Savings
Savings are estimated based on a low-to-moderate exporter sending 100 shipments per month (4-5 per day) internationally. The time for one person to prepare an average order for export is estimated at 30 minutes. Your savings will depend on export volume and the current methods in use today to manage the export process.
1. Companies which currently outsource all or part of export document
preparation and compliance review will save on fees for these services.
($10-$120 per export) X (1200 exports per year) = $12,000-$144,000 annually
2. Companies which produce documentation in-house using pre-printed
multi-part forms will no longer be required to purchase these forms.
($1-$2 per form) X (average 3 forms per export) X (1200 exports per year) = $3,600-$7,200 annually
3. 60%-80% reduction in time spent preparing export documentation and
performing a complete export compliance review.
(.60-.80) X (0.5 hour per export) X (1200 exports per year) X ($15 per hour) = $5,400-$7,200 annually
II. Business Risk and Exposure Savings
SHIPS introduces formal procedures for export compliance review into your organization. All orders are automatically reviewed. Suspicious orders are held pending a more thorough manual review. These procedures greatly reduce the risk of an inadvertent violation of export law and help avoid the following undesirable and costly consequences:
1. Loss of export privileges for an extended time period.
2. Fines ranging up to millions of dollars.
3. Prosecution and litigation.
4. Undesirable publicity.
Should your company be targeted for an audit by the BXA (Bureau of Export Administration), having in place an export management system will favorably impact any decisions regarding penalties for export violations.