Why Companies Fail to Transform Their Customs Compliance Management Organisation?

Customs compliance rarely takes center stage on the executive agenda. And when it does, it's usually (always) during a crisis. By then, it's already too late. The organisation shifts into damage control mode - throwing in extraordinary effort to contain the situation. The company might be protected in the short term, but systemic risks remain largely unresolved.

In today’s and tomorrow’s global trade environment, ignoring the strategic question of customs compliance management is no longer an option. It's critical not only for ensuring supply chain continuity and mitigating risk, but also for protecting margins in an increasingly volatile global trade landscape.

Yet, many companies still struggle to evolve their internal customs functions into scalable, efficient, and future-ready organisations. Despite good intentions, transformation efforts often stall - or fail outright.

Why? The most visible reason is that companies often underestimate the scale and nature of the transformation required. They approach customs compliance management strategy as a series of tactical fixes or isolated process enhancements, rather than what it truly is: a complex, cross-functional system that integrates people, processes, and technology.

But the root causes often run deeper, hidden in how companies frame the challenge, structure their transformation, and execute change across functions.

In this article, we unpack five common reasons why customs compliance transformations fail - and what companies should be doing differently to succeed.

1. No Clear Organisational Model: moving forward blindly

A surprising number of companies initiate customs compliance transformation without a clearly defined target operating model for what an effective customs compliance management organisation should look like. They lack a structured framework to steer the redesign of roles, responsibilities, governance mechanisms, and core workflows. As a result, transformation efforts become fragmented, reactive, and unsustainable.

Success requires more than intent - it demands a clear, purpose-built organisational model tailored to the realities of in-house customs compliance. This includes defining the structural setup (centralised, regional, or hybrid), establishing clear decision rights across levels, and setting measurable performance indicators aligned with business objectives.

Reference models and maturity assessments play a critical role: they help organisations benchmark their current state, identify capability gaps, and prioritise areas for change. Without this clarity, companies risk investing heavily without ever achieving lasting impact.

At DOJÖ, we have developed a proprietary framework - the DOJÖ Trade Management Model (DTMM) - to guide the design of high-performing customs and trade compliance organisations within large-scale, global enterprises. As part of any diagnostic, functional review, or transformation initiative, we apply the DTMM to assess the key strategic pillars of our clients’ customs function. This model is built on four core dimensions: governance, scaling, risk-based controls, and the integration of robust compliance programs. Our goal is to deliver a clear, structured evaluation of strengths and gaps, along with a concrete action plan to improve efficiency, elevate risk management, and ensure alignment with centralised governance expectations.

2. Unclear Objectives: When Everything Is a Priority, Nothing Is

Without clearly defined objectives, transformation becomes a moving target. Teams often struggle to understand why the initiative is happening, what outcomes are expected, and how success will be measured. This lack of clarity creates confusion, misalignment, and disengagement.

Effective transformation begins with a shared vision and strategic intent. Companies must clearly articulate what they expect from the reorganisation, and place it in the context of their broader expectations for the in-house customs function. Too often, organisations launch ambitious initiatives without having first clarified or ranked their objectives. Is the priority regulatory compliance? Operational efficiency? Cost optimisation? It cannot be all three with the same level of intensity.

Transformation objectives must be prioritised, not just listed. Once defined, they should be communicated consistently across all functions and levels, from senior leadership to front-line teams. This ensures organisational alignment and avoids contradictory efforts. Clarity around goals also enables proper resource allocation, so that time, talent, and investment are focused where they will generate the greatest impact.

Without clear objectives, transformation becomes a moving target. With them, it becomes a focused, measurable, and achievable journey.

3. Misplaced Priorities: Organisation Before Systems

One of the most common (and costly) mistakes in customs compliance transformation is jumping straight to technology. So many companies rush to implement global trade management systems, expecting them to solve structural problems overnight.

But a powerful tool in the hands of a weak organisation is a liability, not a solution.

The hard truth is this: no system can compensate for a lack of organisational readiness. If decision rights are unclear, processes undefined, or governance fragmented, even the best system will underperform. Worse - it will amplify the dysfunction.

Before investing in technology, companies must ask hard questions: Do we have the right organisation in place? Is ownership clear? Are the core customs compliance workflows robust and scalable? Without confident answers, even a state-of-the-art system will struggle to deliver impact.

Transformation must begin with the organisation. Define the customs compliance management strategy, assign ownership, build governance structures, and establish clear workflows. Only then should a technology platform be introduced to support and scale that foundation.

Putting systems before organisation is not just premature - it’s reckless. The real ROI from technology comes when the people, processes, and accountability are already in place. Many companies end up paying the price for having rushed in too soon.

4. Having Weak External Support 

In any major customs compliance transformation, bringing in external advisors is not optional - it’s essential. Independent experts provide a critical outside-in perspective and help shift the conversation from opinions and assumptions to facts and evidence, starting with a deep, objective assessment of the current situation.

But not all external support is created equal.

Too often, companies turn to generalist consultants or legal advisors who lack operational depth in customs. They show up with templated models, abstract frameworks, and “target operating models” that sound impressive - but lack any real grounding in day-to-day customs realities. No executional muscle. No impact.

The truth is: transforming a customs compliance organisation requires specialized skills that few advisors actually possess. It demands experts who’ve been in the trenches - who understand both the regulatory complexity and the operational demands of global trade - and who know how to drive lasting change across systems, processes, and teams.

To avoid costly missteps, ask for references. Validate their claims. Review their track record. A credible advisor will be able to show exactly how they’ve delivered meaningful results in similar contexts.

At DOJÖ, we’ve successfully led over 30 global transformation and reorganisation projects, helping multinational companies reshape their customs function with lasting impact. This is our space. And we deliver more than advice - we deliver outcomes.

5. Trying to Transform Everything at Once

Too many companies fall into the trap of wanting to transform everything at the same time. The intention is good - but the execution quickly becomes chaotic. Resources are limited, teams get overwhelmed, and in the end, nothing gets properly deployed. Ambition without structure leads to paralysis.

To succeed, organisations need a clear vision, a bold ambition, but above all - a smart, progressive approach. Once you’ve defined the target model you want to implement, don’t chase a “big bang” transformation. That approach often fails under its own weight.

Instead, treat the transformation like a structured project - with clear milestones, phases, and prioritization. Accept that you won’t be able to cover everything at once, and more importantly, you don’t need to. Focus first on the biggest pain points. For example, if brokerage management is a major inefficiency, start with centralization. Your roadmap should reflect your transformation goals, whether they’re cost, control, responsiveness, or resilience.

Also, if you’re the global trade lead, realize that you won’t be the one executing everything yourself. Part of leading this kind of change is knowing when and how to delegate, sequence, and orchestrate. Trying to do it all at once, or alone, is not leadership, it’s burnout.

Execution should be staged, not scattered. Don’t try to cover every topic in the first wave. Customs transformation is not about doing everything, it’s about doing the right things, at the right time, with the right people.

Transforming your customs management organisation is a strategic imperative for companies aiming to navigate the complexities of the new global trade order. But this transformation demands rigour, it cannot be approached lightly or executed superficially. It must be treated as a true functional and organisational transformation, grounded in structure, driven by outcomes, and guided by expertise.

For those who approach it with the right methodology and avoid the common pitfalls, the rewards are substantial - ranging from cost efficiencies and compliance resilience to operational agility. The opportunity is real. The challenge is clear. Now it’s your move.