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Customs optimisation
How we helped a global consumer goods manufacturer turn a customs blind spot into a leverageable business capability.
Published on 28 July, 2026
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For several years, a world-renowned manufacturer operated customs clearance activities under the umbrella of broader logistics services, meaning they were rarely questioned.
While transportation and operational costs were closely managed and regularly tendered, customs activities were overlooked and expenditure remained hidden.
However, faced with tightening margins and limited opportunities for further savings, the company turned its attention to this overlooked area. But what began as an exploratory request for quotation (RFQ) for a handful of European markets quickly evolved into a much deeper investigation.
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Shining a light on customs conundrums
The client in question is a global manufacturer operating in the consumer goods sector, with a broad European footprint, high-volume trade flows, and a complex supply chain spanning multiple markets.
Like many organisations in its sector, the company operates with tight margins, where even small cost fluctuations can have a material impact on profitability. As a well-established industry player, the firm had established a mature logistics procurement function, regularly tendering transportation across sea, road, and air freight.
However, customs clearance had evolved differently. It was embedded predominantly within warehousing and transport services, handled by logistics providers as part of wider contracts. As a result, customs activities lacked dedicated oversight, procurement ownership, and clear cost visibility.
The turning point came amid sustained economic pressure. With limited room to absorb rising costs, the company began reassessing its expenditure. Transportation had already been optimised extensively, leaving little opportunity for further savings.
Uncovering the customs blind spot
Attention shifted to customs, an area that had never been independently procured or strategically managed. This revealed a fundamental challenge – a lack of transparency. Costs associated with customs clearance were intertwined with other services, making it difficult to determine what was being charged, for which activities, and at what value.
This opacity extended beyond pricing. Operational practices had developed over nearly two decades of working with the same service providers, without systematic review. Certain activities were being performed out of convenience rather than strategic design, and their implications were not always fully understood.
At the same time, compliance risks began to surface. In some cases, responsibilities such as the issuance of commercial invoices had been delegated to external providers, introducing the potential for major liabilities if the provider got product descriptions, values or quantities wrong.
Without intervention, these issues posed a dual risk: continued financial inefficiency and growing exposure to regulatory and compliance challenges, particularly in light of upcoming legislative measures such as the EU Deforestation Regulation (EUDR) which encompasses most of the manufacturer’s product catalogue.
Getting the customs house in order
To address these challenges, a structured approach was required. Having never put together an RFQ for standalone customs clearance services, the firm reached out to Kuehne+Nagel’s experts for guidance.
Rather than adopting a traditional multi-stage negotiation model, the client requested a single, best-value proposal, setting a clear expectation for transparency and competitiveness from the outset.
To begin with, the assessment focused on three key European markets. Led by our team of customs experts, it also centred around three key dimensions:
A commercial review analysing cost structures and identifying inconsistencies or unjustified charges.
An operational review mapping current processes and evaluating their efficiency and appropriateness.
A compliance review assessing regulatory adherence and identifying potential risks.
During the commercial review, several unexplained charges were uncovered. These costs, most of which were ambiguous or lacked clear justification, were quickly spotted.
Operationally, the analysis highlighted legacy practices that no longer aligned with proper risk management protocols.
From a compliance perspective, the assessment provided much-needed visibility into areas that had been largely neglected by procurement teams, including the importance of engaging with an AEO-certified broker and setting transparent, well-defined standard operating procedures (SOPs) for all customs-related activities.
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From analysis to action: reimagining customs management
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After this in-depth investigation and the insights it revealed, our team of experts proposed a new and comprehensive approach to customs management. This model would be based on:
Standalone customs clearance services offered by us as an AEO-certified trade partner, covering import/export declarations, transit documentation, certificates of origin, and health-related documentation.
Separate contractual agreements, service level agreements (SLAs), and billing structures for customs activities.
Clearly defined standard operating procedures (SOPs) to ensure transparency and accountability.
Throughout the process, collaboration between procurement, operations, and customs specialists was critical. While procurement brought strong commercial and operational expertise, our customs specialists played a key role in highlighting compliance risks and educating the client’s key stakeholders.
Clearly defined processes lead to tangible results
The impact of introducing a standalone customs strategy was both immediate and measurable. Firstly, the client obtained cost transparency and savings for their customs operations, as well as positioning them to make better-informed decisions. A key outcome here was a 50% reduction in their cost-per- declaration.
Secondly, they achieved much-needed operational clarity over their customs activities. The introduction of structured SOPs and SLAs provided a clear understanding of processes, responsibilities, and expected service levels.
Next, the solution improved compliance and reduced associated risks. By identifying and addressing potential risks, such as reliance on non-AEO-certified brokers, the client strengthened its compliance framework. The new setup also repositioned the organisation to better manage future regulatory requirements, including EUDR.
Lastly, customs became a strategic capability. Rather than remaining as an obscure and complex setup, customs transitioned into a strategic lever. Going forward, the client is now equipped with clear performance indicators, enabling ongoing evaluation of service quality and partner performance.
In short, the manufacturer wasn’t just overpaying – they were doing so without knowing
By challenging long-standing assumptions surrounding customs procedures, compliance, and costs, as well as conducting a structured review, the client uncovered significant blind spots. The shift to a standalone customs model delivered cost savings, established transparency, strengthened compliance, and enhanced operational setup for customs clearance.
In an environment where margins are forever being squeezed, the ability to spot and unlock hidden value is critical. For this manufacturer, the answer wasn’t further optimisation. Instead, it was rethinking customs processes and expenditures that had long gone unexamined with a trusted AEO-certified partner on hand to deliver.
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Ready to turn customs into a competitive advantage?
Learn how our customs clearance services can help you cut costs, reduce compliance risk, and keep your supply chain moving with confidence.
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