Subscribe to our free, weekly email newsletter!


Realizing Global Trade Management Potential

As the global trade engine kicks back into gear, new demands for electronic notifications and the need for better, more efficient trade compliance are buoying the global trade management market. Are you prepared to harness your organization’s global opportunities?
image

Source: ARC Advisory Group - Steve Banker, director of supply chain solutions at ARC Advisory Group, predicts an average growth rate of 9.4 percent annually for GTM software through 2014.

By Bridget McCrea, Contributing Editor
February 24, 2011

Let’s cut to the chase: Global Trade is on a tear.

According to the World Trade Organization’s (WTO) latest numbers, global trade grew by 13.5 percent in 2010 after falling 12.2 percent in 2009. It was the fastest-ever annual expansion in global commerce, reports the WTO—which originally forecasted a 10 percent increase—and an unexpected jump that comes on the heels of a long-awaited economic recovery.

Last year’s global trade expansion also marked the fastest year-over-year growth ever recorded in a data series that dates back to 1950, according to the WTO, and is sure to bring even more shippers into the international market in 2011. Which begs the question: Will those companies be ready to handle the rigors and challenges of doing business overseas?

The quick answer is “no,” particularly in regards to the IT necessary to navigate the increasingly complex maze of global trade. According to ARC Advisory Group’s latest Global Trade Management (GTM) Worldwide Outlook Study, most small and midsize companies still rely on manual processes to manage their global trade operations, particularly their exports. Not only is this approach costly and inefficient, ARC reports, but it also makes it difficult or impossible for companies to remain in compliance with Customs regulations.

“The fact that companies need to stay on top of trade content, which is changing all the time, is a key driver of GTM sales,” says Steve Banker, director of supply chain solutions at ARC Advisory Group.

“The whole governance risk arena is getting more attention from C-level executives, with trade compliance being an [important] piece of that puzzle.”

The need for better, more efficient trade compliance and new demands for electronic notifications (which must now be filed before goods are shipped to certain countries) are buoying the GTM market, which, like many other supply chain software sectors, saw sales flatten when the nation was in the throes of recession.

Expect that situation to turnaround in 2011, says Banker, who predicts an average growth rate of 9.4 percent annually for GTM software through 2014. “That’s fairly strong growth in one of the fastest-growing segments of the software industry,” says Banker.

Over the next few pages, we’ll delve deeper into the GTM space to find out who’s using the software, how it’s being used, and what new developments will come to market this year. Then, we’ll show you how one shipper is using GTM to work smarter, better, and faster in the global economy.

About the Author

image
Bridget McCrea
Contributing Editor

Bridget McCrea is a Contributing Editor for Logistics Management based in Clearwater, Fla. She has covered the transportation and supply chain space since 1996, and has covered all aspects of the industry for Logistics Management and Supply Chain Management Review. She can be reached at .(JavaScript must be enabled to view this email address).


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

Seasonally-adjusted (SA) for-hire truck tonnage in February was down 3.1 percent (2000=100) compared to a revised 1.3 percent (from 1.2 percent) increase in January. ATA said this reading marks the lowest level for the SA index going back to last September.

It was a busy day for railroad-related legislation yesterday, with the United States Senate Commerce, Science, and Transportation Committee approving two bills with a railroad focus by a voice vote. The respective bills are S. 808, the Surface Transportation Board Reauthorization Act of 2015 and S. 650, the Railroad Safety and Positive Train Control Extension Act.

Indications given by a splinter group of the International Longshore and Warehouse Union suggest that shippers should not assume the tentative contract with the Pacific Maritime Association is a “done deal.”

Navis announced that George A. Kohlrieser, an internationally recognized expert on leadership, will present a general session at Navis World 2015, taking place March 29-April 1, 2015 at the Intercontinental San Francisco Hotel.

While its day-to-day objectives remain the same, the online load board freight-matching service Internet Truckstop announced today it has a new name: Truckstop.com.

Comments

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


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA