Customs Support CEO John Wegman on Mitigating Disruption

Global supply chains are dealing with a mosaic of evolving regulations, political and economic tensions and natural disasters, leaving businesses around the world scrambling for solutions.

But what exactly can leaders do to ensure continuation of trade without disruption?

Supply Chain Digital spoke to John Wegman, CEO at Europe’s largest customs support agency, Customs Support, to find the answers.

What primary challenges do your clients face? And how are you supporting them?

There’s a lot going on, really. From geopolitical tensions like the conflict in Ukraine, to new sustainability standards and climate disruptions, it’s never been more difficult to stay ahead of change. For instance, with the EU’s Carbon Border Adjustment Mechanism (CBAM) now affecting imports, many companies are seeking new guidance on tax implications and carbon reporting. 

We often find that clients are less concerned about the volume of paperwork after things like Brexit and more worried about the unpredictability of compliance demands. Our job is to make sure that each and every member of our team is well-versed in all new regulations before they take effect, complementing this expertise with what we call “Real Intelligence” – which is really just a professional way of referring to our real-world human insight. Technology and data certainly play a role in staying alert, but regulatory compliance is so detailed that these are just part of the solution. Our real strength lies in the expertise we bring to support our clients through even the most complex of transactions. 

You mention the impact of global events on supply chains. Is there any indication that things will stabilise soon? 

All the world’s major economies are grappling with the impacts of geopolitical trade disruptions right now, whether this means raw material shortages or infrastructure bottlenecks. Change won’t happen overnight, especially considering that recent events like the strikes at ports across Europe only happened this year, underscoring deep-rooted unpredictability. 

While governments and companies alike are taking steps to enhance their supply chain resilience, by complementing global networks with regional hubs like in the semiconductor industry, for instance, a complete solution requires a much more multi-faceted approach. It’s all about striking a balance between still benefiting from the best global connections while perhaps looking into more local investments to support continued flexibility and growth – not forgetting that there’s always opportunity for international supply-chain diversification with the right knowledge behind you as well.

What role does tech play in all of this? Can it help to reduce disruption?

It can, to a certain extent. Automation and real-time data tracking have streamlined customs procedures, allowing us to identify potential bottlenecks much more quickly. This gives us more time to respond, acting proactively rather than allowing clients to enter into a panic. Similarly, digital tracking systems have vastly improved the accuracy of customs documentation, reducing costly mistakes and delays.

Having said that, our industry is complex and technology can’t manage it all alone. It’s the nuanced understanding of regulations and trends that truly protects people at customs. Take machine learning, for example. AI helps us process large volumes of data so we can predict potential disruptions in advance. But knowing how to interpret and act on these insights is an entirely different story. Without skilled staff to use this advanced technology, it would be impossible to come up with effective contingency plans and avoid financial setbacks as we maintain compliance across multiple regions in the real world. 

So, should firms and governments focus on other areas as well?

Definitely. Digital solutions are essential, but they’re just one piece of the puzzle. Our recent survey actually identified three top challenges for businesses in international trade: compliance, the need for skilled customs expertise and guidance on strategic use of AI and technology. 

Businesses that rely on manual processes alone are particularly vulnerable to issues like the 2021 Suez Canal blockage or the recent transportation strikes. But for companies to remain resilient, they also need regulations to be communicated to them clearly, backed by an understanding of what’s going on politically around the world. Around half of the business owners we surveyed said unpredictable geopolitical events are their main concern, highlighting the need for a layered approach. Reliable tech, yes. But also better guidance and communication from experts and governing bodies to help firms prepare for change. With the right support, companies can avoid disruption and maintain their competitive edge. 

How will new EU policies like the CSRD and the CSDDD impact companies? 

Both directives mark a significant shift for global business. Under the Corporate Sustainability Reporting Directive, for example, companies that generate more than €150 million in the EU will need to report their sustainability practices and impacts across their operations, generally speaking. If your company fits within the reporting threshold – say, an EU subsidiary with 250 employees or more – it’s critical to establish a good ESG framework and stay on top of reporting deadlines. This comes directly from the European Commission. 

The Corporate Sustainability Due Diligence Directive is likewise impactful, requiring companies to examine their entire supply chains for both environmental risks and human rights. For firms unprepared for these changes, it’s important to be proactive. This means building compliance into the business model and partnering with trusted experts to bring both the regulatory and ethical dimensions of what you do up to standard.

What are your long-term priorities at Customs Support? How do you see things changing in light of expanding regulatory demands?

We’ve made significant progress expanding across the EU so far, often through mergers and acquisitions. Now, we’re focussing on more organic growth, however, aiming to provide a comprehensive support network for our clients. Our long-term goal is ultimately to be the central hub for all things customs and trade compliance, allowing firms to meet all kinds of regulatory requirements and challenges without disruption, regardless of expanding demands. Whether this is achieved through digital transformations, direct, person-to-person advisory services or a combination of both – we’re here to support seamless operations across multiple borders. 

Our vision for Customs Support is simple: we want to equip each and every business we support with the tools they need to continuously handle the ever-changing landscape of international trade. It’s all about empowering them with the knowledge, expertise and, indeed, confidence, they need to thrive. 

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