This site makes use of Javascript, please enable your web browser to allow Javascript. Thank you.

Ronald Henry Discusses Best Practices for Supply Chain Compliance in Avnet Supply Chain V…

March 2014

Ronald Henry Discusses Best Practices for Supply Chain Compliance in Avnet Supply Chain Velocity

As seen in Avnet Supply Chain Velocity’s “Create Real World Compliance Awareness”

Avnet Supply Chain Velocity reports on the numerous regulatory requirements for electronics companies and the importance of training supply chain personnel at these companies to be aware of and in compliance with these regulations. Rather than relying on coworkers to brief each other or to direct each other to the text of these regulations, companies must be proactive in setting up specific compliance training procedures in order to avoid potentially harmful consequences to the company.

According to Kaye Scholer Partner Ronald Henry, Leader of the firm’s Government Contracts Practice, “There has been a big crackdown on people who are nibbling around the edges of the Iran sanctions.” He added, “Companies face heavy fines and responsible individuals can face jail time for violating the regulations. The State and Commerce Departments also have a form of blacklisting at their disposal, which prohibits companies from exporting anything under their jurisdictions. For export-dependent companies, that can be a death sentence.”

Training must be provided to personnel in every level and function of an organization in order to ensure total compliance, though it may be necessary to customize training accordingly. In addition, Henry explained that customized training can be useful in addressing the demands of vertical markets, saying “Different products are subject to different kinds of controls. People in the aviation industry need to be trained differently than people in the software industry. Different companies handle processes like order intake differently. Each company has to decide where to inject the export compliance component and to train their employees accordingly.”

Finally, it is important to make sure that employees are trained on any and all relevant regulations. “Employees must be trained to analyze shipments under all the rules,” said Henry. “A sale may be okay under Commerce Department rules, but you want to make sure that there are no State or Treasury rules dealing with that same shipment. You want to make sure that training cuts across all three regimes. You don’t want your compliance people to suffer from tunnel vision.” 

Also of Interest