I am sure that anyone who asked their grandmother for a recipe was told that you need to put in "a little bit of this and a little bit of that". Then, in order to determine what "this" and "that" was you had to stand over grandma to see exactly what she was doing and take meticulous notes in order to try and replicate the recipe in the future. My favorite example of this was my wife's grandmother's chicken soup. There was no way to get an exact recipe except by watching her add the specific ingredients and spices trying to determine how much to add and when in the process to do so. (The end result was a fabulous chicken soup.)
So when we talk about an SOP, a Standard Operating Procedure, "a little bit of this and a little bit of that" just won't do.
For cooking, the SOP is a cookbook. Whether you are a novice or a seasoned cook, the cookbook is your guide. Even the greatest chefs use cookbooks. They may be the authors of those cookbooks but the guide is used even by the seasoned experts.
My sister, who gave me the idea for this blog posting, is an excellent chef and is always asking for new recipes. She needs to get the "SOP" for the new dish to make sure that she is able to make the highest quality and best tasting dish. (One of my favorite recipe's that my sister makes is her "pretzel dogs" --> hot dogs wrapped in a pretzel. Very yummy!!!)
My personal favorite cookbook is "Second Helpings, Please!" (Norene Gilletz, Roslyn Brown and Rae Wander. "Second Helpings, Please!", B'nai B'rith Women of Canada, Montreal, 1968.) This may be considered a very old cookbook. However, it has excellent recipes, is clear to understand (which enables one to follow the instructions) and also gets back to the basics with helpful charts to understand abbreviations, measurements, and cooking terms and definitions.
If ever you need an example of a Standard Operating Procedure for cooking, "Second Helpings, Please!" is definitely a great start.
Here is a recipe that I make quite often. "Potato Kugel" (Potato casserole/baked pudding). You can find this recipe in "Second Helpings, Please!" on page 99. (I tend to double or even triple the recipe as six servings of this wonderful side dish just won't do.)
- 6 potatoes, pared
- 1 onion, grated
- 2 tbsp. flour
- 2 eggs
- 1 tsp. salt
- 1/4 tsp. pepper
- 1/4 tsp. cinnamon (I leave this out as I am not a big fan of cinnamon.)
- 3 tbsp. oil
Grate potatoes and drain well. Blend in onion, flour, eggs and seasoning. Mix well. Heat oil in a casserole in a 400 degree Fahrenheit oven. Pour batter and sprinkle a little oil and paprika on top. Bake for approximately 1 hour, until nicely browned. 6 servings.
A great replacement for mashed potatoes and is best served with meat, chicken or even fish.
My sister gave me some pointers about the Standard Operating Procedures of cooking.
- For example, when creating a dish, make sure to season every step of the cooking process. If you just season the dish at the end, you do not get the full flavor profile throughout the dish.
- Another example is prepping your cooking station before starting. It might seem that "cooking on the fly" will be quicker, but then you will not be able to control your timing and the food may not cook as expected.
- Lastly, investing in your tools and equipment will greatly assist in the cooking process. The proper pots, pans, sharp knives, etc. all bring the cooking experience and the end result to a new level.
So I am sure you are all asking, what does a cookbook have to do with Customs?
In this respect, Customs is not so different from cooking. Unfortunately, my wife's grandmother is no longer with us and without writing down her amazing chicken soup recipe, it would not be able to be replicated.
Similarly, we have to realize that associates of a corporation may choose to venture on to other challenges leaving a gap in the process. Writing the process down allows for others to quite seamlessly and quickly close that gap without having to recreate the "recipe" (in this case recreate the company procedure).
- Who within an organization is responsible for accurate HS classification?
- Does the finance team reconfirm the amount paid to the vendor with the traffic team?
- How does a corporation take advantage of preferential duty treatment due to a Free Trade Agreement and is there a certification process in place to ensure that the goods utilizing the preferential treatment actually qualify?
All of the above can be documented within a Standard Operation Procedure and Process for Customs purposes.
Why is an SOP important and how can the cost of setting this up be justified?
Great questions! Let's look at that for a moment...
1) As already noted, a written SOP will allow a corporation to quickly fill a gap should an associate choose to leave.
Like the cookbook, a recipe is not lost when the creator is no longer with us.
2) Having a written process in place will increase the compliance of the Customs declaration that is made in partnership with the Customs Broker. When each party understands their responsibilities, the possible error rates usually decrease (substantially, I might add...).
Similar to the cookbook, each ingredient adds to the flavor of the dish. With a written SOP, the individuals involved with the clearance process, bring focus and accuracy to the declarations initiated.
3) The tools required for a Customs declaration to be initiated are extensive. Just like ensuring that the chef has the proper tools, the Customs SOP provides the guide and tools to streamline a Customs declaration that, for the most part, provides for accurate and compliant declarations.
Without an SOP, costs could sore due to inaccurate declarations, miscommunication and inefficient processing.
An SOP also allows for teams and individuals within a corporation to understand what each other is doing, each other's responsibilities and how that affects the Customs declaration. The SOP creates a method of communication and transparency by identifying the responsible party for each step of the process. It never ceases to amaze me, when an audit is initiated by Customs, how one department had no idea that their actions and process could affect the Customs declaration that is the responsibility of and is initiated by a totally different department. The SOP ensures that communication is initiated throughout the corporation and tightens up the supply chain and procurement to payment process which results in more compliant declarations.
One last point about the SOP. Just like the cookbook "Second Helpings, Please!" is easy to understand and has helpful charts, an SOP should be able to untangle the complexity of the supply chain and Customs declaration process. Yes, Customs compliance is complicated. However, the SOP should be able to be understood by most, if not all, associates throughout the corporation. Even if the associate does not have an answer on how to resolve an arising issue, the SOP can at least provide the necessary details and direct them to the person that does.
Whether it is a small business, medium enterprise or a multi-national corporation, a Standard Operating Procedure is a written document that any company involved with imports and exports should develop and update constantly.
Individuals enjoy the taste of a well made dish.
Companies, large or small, and their owners, CEOs, CFO, etc. will benefit from a written process that assists with compliance, ensures efficient processes, and hopefully saves money and mitigates risk.
Note: Thank you to @Ora Somogyi for the amazing insights used in this Blog posting.
Reference: Norene Gilletz, Roslyn Brown and Rae Wander. "Second Helpings, Please!", Recipe. Potato Kugel, B'nai B'rith Women of Canada, Montreal, 1968. Page 99. Print.
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