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

Gaining momentum
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.

“Historically, GTM was associated with a guy who sat in the corner somewhere, making sure the paperwork was in order,” says Griffin-Cryan.

“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.”

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

Total POLB volumes dropped 9.1 percent in August at 573,083 TEU, and POLA volumes in August were up 6.7 percent compared to August 2013 at 757,702 TEU.

Following a week in which the average price per gallon was flat, diesel prices resumed their decline, falling 1.3 cents to $3.801 per gallon, according to the Department of Energy’s Energy Information Administration.

Read how others are using Business Process Modeling to implement Microsoft Dynamics AX with reduced risk.

While diesel prices have largely been out of the spotlight in 2014, freight transportation and logistics stakeholders always need to keep a close eye on what prices are doing, as it has a significant impact on transportation budgets and forecasting.

Railroad service issues and rates, which many rail shippers deem as unreasonable, are front and center in a piece of legislation to be introduced soon by Senators Jay Rockefeller (D-WV) and John Thune (R-SD), chairman and ranking member of the Senate Committee on Commerce Science and Transportation.

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