The world continues to get smaller. A natural disaster, such as the tsunami in Japan, instantly cripples supply chains around the world. Economic news such as the European Union’s changing position on debt bailout for countries like Greece has a ripple effect on financial markets around the world.
We are a global economy, with financial markets and physical supply chains that are inexorably tied. The world continues to get smaller. And although that fact poses some challenges, it also presents some wonderful opportunities.
Present global debt crisis aside, international markets will continue to mature and open up. China, once the source of a lopsided trade imbalance, will increasingly become a source of revenue growth for U.S. exporters, as will other developing countries in the near term. Meanwhile, other countries are developing specialized manufacturing skills in specific areas, the fruits of which will become low cost sourcing opportunities for U.S. importers.
For U.S.-based companies large and small, this opens up opportunity. Four or five years ago, many U.S. companies deployed global trade management software for U.S. exports only. Today, those same companies are looking at suites of solutions that cover import, export, global transportation and supply chain visibility for dozens of countries.
They realize the world is getting smaller and their global supply chains must adapt. It is no longer about exporting or importing to one or two countries. It’s about looking at the entire world for opportunities to grow revenues and evaluate sourcing opportunities.