Challenge

Major brands producing microelectronic components and consumer products partner with Serial System and form part of its synergistic distribution network – one of the largest and most extensive in Asia. Since its foundation in 1988 and notably its listing on the Singapore Exchange in 1997, Serial System's global distribution network has been growing steadily. As did its portfolio: Consumer products were added in 2014, managed print service offers were included in 2017, and its foray into 3D printing started in 2020.

Serial System has a great commitment to quality standards, operational excellence, innovation, and sustainability. Meeting these standards while continuously growing and expanding in an ever more demanding regulatory global trade environment created a strong need for a flexible and powerful trade compliance solutions.

At the time, Serial System had been working with an on-premises trade compliance solution from a US provider for nine years. This solution no longer delivered the right cost-benefit ratio after their provider had gone through multiple acquisitions, which resulted in significant price increases, loss of local support, and lack of improvements of systems and services.

The company was therefore looking for a solutions partner that would meet its requirements for latest technology and high-quality service while increasing the level of digitization and moving on-premises solutions to the cloud.

Solution

Serial System carefully scrutinized possible new providers. Choosing AEB solutions for business partner screening and export control checks was based the following advantages:

1. The flexibility of AEB’s cloud solutions, the broad range of functionality and content, the scalability, and SAP^® integration options via straightforward add-ons for both existing and future SAP landscapes.
2. AEB’s high quality standards, its solution and data center certifications, comprehensive service and support both locally and abroad, and its up-to-date data service for relevant sanctions and export control jurisdictions.

The AEB solutions Compliance Screening and Export Controls were smoothly implemented and replaced the previous on-premises solution in less than 3 months.

Automated screening in the cloud kicks off once new business partners are created in the system and automatically runs transaction-based for every sales order and delivery order. Checks for restricted entities, equipment, end-use, and end-destinations in line with applicable regulations take place in the background of all transactions without interrupting daily business. Screening matches are automatically flagged and easily accessible in the compliance monitor for review and approval by authorized staff.

The solutions’ intuitiveness and direct access in the SAP^® user interface supported the quick adoption by Serial System’s key users – both in their corporate head office in Singapore and across its sites in China, India, Indonesia, Japan, Malaysia, Philippines, South Korea, Taiwan, Thailand, and Vietnam.

Products Used

• Trade Compliance Management
• Compliance Screening
• Export Controls

Result

AEB’s solution underpin Serial System's digital transformation mission through highest levels of automation and seamless integration into SAP^®. They also meet the company’s efficiency goals and align with Singapore’s government push for green technology initiatives.

The move from on-premises solutions to the cloud significantly reduces costs, minimizing IT hardware requirements and maintenance efforts. The company’s compliance stakeholders benefit from complete audit trails and full transparency over screening results, enabling quick decisions on the 1.9% of orders that return critical matches.

Operating an international network and distributing a diverse range of products requires regulatory compliance across regions in Asia, Europe, and the US. AEB solutions deliver legal certainty by screening partners and transactions for all applicable jurisdictions.

AEB’s solutions supported Serial System in achieving the Singapore Customs Best-In-Class “TradeFIRST” (Trade Facilitation & Integrated Risk-based System) Premium Band Accreditation which significantly enhances Serial System's ability to operate efficiently and maintain its strong reputation in the global trade environment. Serial System is also holding “STP” (Secure Trade Partnership) status – a program aligned to the Authorized Economic Operator (AEO) concept – recognized under Mutual Recognition Arrangements (MRA) with 13 countries across the globe to date.

Serial System is now exploring options for AI-supported classification with AEB’s Product Classification and warehouse optimization with AEB’s WMS.