This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
Companies of all sizes are still trying to manage their global trade, compliance, and logistics manually. But with the ever-increasing complexity of supply chain management, this leaves room for human error and interpretation that can result in severe financial consequences.
As these companies continue importing and exporting goods, they will quickly realize that their success is tied to their ability to trade efficiently and effectively. Trade compliance and visibility are the main concerns, as speed to market is essential. Unanticipated delays created by unforeseen supply chain bottlenecks or noncompliance — holds, fines, penalties, and focused assessments — are unacceptable, as they reduce profits and create missed business opportunities.
In the next 24 months, companies will increasingly begin implementing solutions that can automate the entire compliance process, show them where their goods are in their supply chain, and create audit trails that document everything. This can be found in a reliable globe trade management (GTM) application.
In short, smart use of GTM systems means importers and exporters can manage their entire supply chain as if it were a single entity, rather than a series of operational functions that communicate poorly with one another. Everything can be managed in one place, because harmonization codes, country of origin information, product cost for landed cost calculations, and other crucial information are all in one system. Furthermore, GTM solutions allow management by exception, meaning that the system can automatically generate all documentation required for compliant trade and alert you of many problems that could arise on its own.
Many of the challenges that surround implementing a new GTM system lie with incorporating it into existing systems and getting them to work together seamlessly. By choosing the proper software and provider, businesses are able to integrate the solution with ERP, WMS, and in-house applications of every kind.