Subscribe to our free, weekly email newsletter!



Managing Global Trade

Rising importance but lagging execution

November 04, 2013

Research conducted in April 2013 by SCM World on managing global manufacturing footprints highlighted the growing complexity of cross-border trade. Where globalization once meant low-cost country sourcing, today it is clear that goods must move in all directions at once – east to west, north to south, rich country to poor country and back again. Movement of product, whether as raw material input, finished goods or capital equipment, requires an approach to global trade management that is ever vigilant to regulations, taxes, transportation costs and more – and one that is equally capable of facilitating inbound supply and outbound delivery to end customer markets.

To understand the business drivers and execution challenges associated with this increasingly important and complex area, we fielded a survey to the SCM World community. Having collected 114 complete responses and then conducted a further 10 in-depth interviews, we arrived at some broad conclusions that suggest global trade management has begun to outgrow most companies’ largely manual processes.

The highlights of our findings include:

  • Three-quarters of the companies surveyed conduct trade across more than 10 countries, with almost half
    (48%) trading across more than 50 countries.

  • Over 41% of the companies surveyed import more than half of their products from international suppliers.
  • More than 97% of respondents say that product cost savings are either “important” or “very important” business
    drivers of international sourcing.



Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Shippers and other ocean cargo carrier stakeholders should be cheering the announcement made today by The U.S. Coast Guard, as it formally notified the International Maritime Organization through a Declaration of Equivalency that the United States position on SOLAS is that there are multiple methods to submit the combined cargo and container weight (Verified Gross Mass or VGM).

The proposed $4.8 billion acquisition of TNT Express N.V. by FedEx took a major step closer to becoming official today, with the company and TNT announcing today that they have received unconditional approval of the offer from the Ministry of Commerce People’s Republic of China (MOCFCOM).

March shipments at 798,180 trailed February by 12 percent and were down 19 percent annually. For the entire first quarter, shipments were relatively flat annually, rising 0.27 percent to 2,587,988.

OCEMA says it has placed a priority on working with other stakeholders to find operational solutions that will help U.S. exporters, carriers, and marine terminals prepare for the implementation of the SOLAS Verified Gross Mass (VGM) rule.

The first quarter is typically the slowest period of freight demand for LTL carriers. With a few notable exceptions, that was reflected in first quarter earnings reports of the major publicly held LTL carriers.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA