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?

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

Applications run the gamut
Today’s GTM applications offer a range of functionalities that are anything but stagnant. In fact, this supply chain software sector is constantly morphing to meet the needs of the global trade environment, which is both unpredictable and dynamic.

At a high level, ARC’s Banker says GTM solutions automate a variety of trade activities that include performing restricted party screenings and embargo checks; assigning export and import licenses; creating and filing trade documents; and communicating electronically with Customs authorities.

GTM software can also facilitate product classification; manage Customs processes and transit procedures; facilitate restitution handling; and determine preferential trade eligibility. Such systems are offered up in both purchase-and-install and software-as-a-service (SaaS) or “cloud” formats, the latter of which is gaining traction among those shippers who want to get their GTMs up and running quickly, and with lower upfront investments and less stress on their internal IT teams.

“We’re seeing a pretty high average adoption rate of cloud-based applications in the GTM space,” says McNeill, who sees the geographically dispersed nature of the global supply chain as a key driver of this trend.

Additionally, he says because global partners are accustomed to sharing trade information through electronic means like EDI, the move to an SaaS-based GTM is a natural transition for them.

“The cloud-based GTM is the final evolution,” says McNeill. “In fact, the trend is so strong that we expect GTM to drive a 25 percent increase in SaaS supply chain management applications by 2013.” In terms of functionality, McNeill expects most applications to continue focusing on logistics, compliance, and finance—the latter of which is an area that’s ripe for improvement.

“Finance is the untapped area of GTM right now, with more functionality being developed around the support of financial processes and how to link that directly to the supply chain,” says McNeill. A company that wants to extend credit to an overseas customer, for example, would benefit from a GTM that allows for the examination of purchase orders and commercial invoices before such decisions are made. “With SaaS growing, those functions could become even easier for shippers to handle with their GTMs in the near future.”

The popularity of cloud-based GTMs is also pushing more vendors into the space, says McNeill, who expects that trend to continue well into 2011. The business-to-business vendors that were already transmitting trade and Customs information to and from business partners, for example, are jumping into the fray thanks to SaaS’ lower barriers to entry. “We’ve talked to about 12 different vendors who have told us that they’re getting into the cloud-based supply chain management arena, which includes GTM,” says McNeill. “I really think we’re going to see that explode this year.”

About the Author

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

Logistics managers have always been under pressure to strike the right distance between specialized intermediaries and the markets they want to serve. That challenge is becoming increasingly complex, however, as mega-brokerage enterprises capture more share.

There are so many ways to analyze the state of truckload capacity, and on top of that there is, perhaps, no other facet of freight transportation that is so directly impacted by myriad moving parts, whether it be driver availability, rates, demand, weather, the economy, and, of course, federal regulations, among others.

The ATA said that the annualized turnover rate for large truckload carriers, which it defines as truckload fleets with more than $30 million in revenue, increased 3 percent to an annualized rate of 87 percent in the second quarter.

If you want to meet some of the most ticked-off people on the planet, talk to any trucking industry retiree who received that letter from the Teamsters’ Central States pension plan notifying them of their potential financial haircut coming in retirement.

Global express delivery and logistics services provider DHL introduced a new flight geared towards Michigan-based importers and exporters out of the Detroit Metropolitan Airport.


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