Resonac Corporation Elevates Global Trade with ONESOURCE

Resonac Corporation, a chemical manufacturer, was formed in January 2023 through the merger of Showa Denko and Showa Denko Materials (formerly Hitachi Chemical). This integration brought together expertise in molecular design and functional material creation, enabling Resonac to produce advanced semiconductor materials, including silicon wafers and photoresists. Resonac’s unique ability to transform materials into highly functional products gives it a substantial presence in the semiconductor sector, with a comprehensive supply chain extending from upstream to downstream processes.

Following the integration, Resonac’s global market presence expanded significantly, necessitating a heightened focus on trade compliance. The semiconductor industry is subject to rapidly evolving regulations, and while many rules target semiconductor manufacturing equipment, Resonac must remain vigilant about future changes that might affect its operations. The company faces increasing geopolitical risks due to factors such as stricter security export controls, sanctions related to geopolitical tensions including Russia’s invasion of Ukraine, deteriorating US-China relations, and ongoing Middle East conflicts. To navigate these challenges and sustain growth, Resonac must continuously monitor international laws and sanctions lists, ensuring prompt responses to changes. However, the existing export/ import management system was inadequate to handle the swift pace of regulatory changes and sanctions updates.

Another critical challenge was unification of systems. Despite the business integration over a year ago, Resonac continued using separate export/import management systems from Showa Denko and Hitachi Chemical. This system fragmentation posed risks and inefficiencies, making system integration essential for operational stability and effective risk management.

Resonac implemented ONESOURCE Global Trade, a comprehensive platform, to enhance compliance within its supply chain. This solution addresses geopolitical risks, and sustainability demands by offering diverse services, including:

• Global regulatory content management
• A comprehensive export/import item database with trade attribute information
• Screening of business partners and suppliers
• Export/import management from inquiry to delivery
• HS code management
• Free Trade Agreement (FTA) management

ONESOURCE Global Trade automates trade compliance tasks, significantly reducing manual labour while maintaining accuracy. It centralises information and screening logic related to trade compliance, enabling safe and cost-effective transactions across domestic and international operations.

The solution integrates “global regulatory content” with an IT platform, enhancing both hardware and software capabilities, including organisational skills and experience. Implementation personnel are well-versed in global trade compliance, supporting the efficient management and screening of information with headquarters as the core.

The solution provides comprehensive coverage of export/import system information for over 220 countries and regions. Approximately 200 specialised staff globally monitor legal amendments 365 days a year, ensuring the system’s “global regulatory content” is updated daily. This allows automated screening using fresh content, achieving high safety standards through regular execution and during inquiry/shipment events.

In addition to enhancing trade compliance features, such as improving work efficiency, cost reduction, risk management, legal compliance, and regulatory response, ONESOURCE provides comprehensive support before and after implementation. The SaaS model reduces implementation and maintenance costs, lessening the IT department’s burden.

The system’s widespread usage in the global market fosters trust with overseas stakeholders. It supports multiple languages, including English, facilitating use by overseas group companies. Thomson Reuters offers flexible support and proposals, reviewing internal rules as needed to align with Resonac’s strategic growth plans.

Thomson Reuters assembles a team of experts from Japan and overseas to support Resonac’s strategic goals. The aim is not only to implement the system but to ensure successful operation post-implementation, providing a seamless experience for Resonac’s global base.

Resonac anticipates further AI-driven enhancements to the ONESOURCE platform, including systems to analyse data and propose responses to legal changes. Thomson Reuters is committed to investing in AI technology to ensure continuous evolution of ONESOURCE Global Trade, contributing to free and fair international trade.