Realizing Global Trade Management Potential
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.
February 24, 2011
As the global economy emerges from recession and more companies do business with overseas partners and customers, the adoption rates for GTM are sure to rise. To manage, companies are using software programs that can juggle the stringent requirements and regulatory issues associated with international trade.
CEOs are now waking up to that fact, says Belinda Griffin-Cryan, global supply chain executive program manager at Capgemini Consulting in Boston, and are integrating GTM into their overall operational strategies.
“It’s now become a strategic, C-level executive topic, with everyone trying to figure out global trade management’s place in the overall organization.”
Credit political moves like the new free trade agreements—including the one that the U.S. recently signed with South Korea—with elevating GTM’s profile, says Griffin-Cryan. “Shippers are realizing the potential for large shifts in global trade flows,” she adds, “and the need to better manage that aspect of their operations.”
Disruptive events like the eruption of the Icelandic volcano in 2010, increased security concerns, and industrial actions taking place in Europe have also pushed more companies to turn to IT to handle their global operations, says Griffin-Cryan. “Shippers realize that we’re in a dynamic period in global trade right now,” she explains, “and see GTM as a way to capitalize on those opportunities while staying compliant, and on the right side of the regulatory requirements, without too much effort.”
Expect that push to continue well into 2011, says William McNeill, senior research analyst for global trade management at Gartner, which estimated that 53 percent of shippers increased spending on GTM applications in 2010, with another 25 percent “holding spending levels steady” for the software.
“Only a small percentage said that they were going to decrease spending on GTM,” says McNeill, who at press time was working on the 2011 study. “It’s been consistent every year that we run this particular study with a group of 150 respondents who are pretty enthusiastic about GTM applications.”
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