QAD Inc., a leading provider of next-generation manufacturing and supply chain solutions in the cloud, announced significant new capabilities to its Import Management solution from the Gartner Supply Chain Symposium/Xpo 2024.
QAD Import Management — a part of QAD Global Trade and Transportation Execution (GTTE) — now includes a product classification tool powered by artificial intelligence. Product classification is the assignment of an item’s identifying commodity code based on the Harmonized System of the World Customs Organization. This code is used by customs authorities to process imports and exports as well as assess duties and taxes.
“Product classification is arguably the most important data element in an international trade transaction, but also one of the most time-consuming and complex tasks that trade professionals must undertake,” said Carter Lloyds, Chief Product and Marketing Officer at QAD. “This new capability underscores QAD’s ‘Pragmatic AI’ strategy of using artificial intelligence to assist people to solve problems.”
QAD’s machine learning algorithm compares data against that of previously classified products and returns a list of recommended products with their respective HS codes, based on the percentage of match. This accelerates classification by starting with a known HS code of a same or similar product. If the user confirms the recommended HS code, the result is passed back to the system where it ‘learns’ from the response and can adjust the results accordingly for future comparisons.
“This will fundamentally change the way product classification is traditionally performed today by allowing the importer to ‘work backwards’ from an established product classification, thus saving companies considerable time while promoting classification speed, accuracy and consistency,” added Lloyds. “We look forward to seeing these advances in technology in action.”
Source: Businesswire