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

When it comes to Congress actually getting its act together on a new long-term federal transportation bill, things remain as status quo as it gets, with the big takeaway being nothing really ever gets done, when it comes to passing a badly overdue and needed bill, rather than these band-aid extensions Congress keeps signing off on.

Truckload and intermodal pricing was up on an annual basis, according to the December edition of the Truckload and Intermodal Cost Indexes from Cass Information Systems and Avondale Partners.

While the official numbers won’t be issued until early February in its quarterly Market Trends & Statistics report, preliminary data for the fourth quarter and full-year 2014 intermodal output from the Intermodal Association of North America (IANA) indicates that annual growth was intact.

Almost all companies today are aware of their labor or material costs... but what about energy consumption? It all comes down to having the energy data needed to determine what actions you must take to improve. The payoff is worth it, as insight into energy data allows you to make more valuable, relevant operating decisions.

With lower energy prices sparking domestic economic gains, coupled with solid manufacturing and industrial production activity, improving jobs numbers, and a GDP number that shows progress, there is, or there should be, much to be enthused about when it comes to the economy and the economic recovery, which has been raised and discussed and dissected from basically every angle possible, it seems. But that enthusiasm regarding the economy needs to be tempered, because big headline themes seldom tell the full story at all really.

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA