Trade software sales to surge: Report

Trade software sales to surge: Report

WASHINGTON - A new report from Aberdeen Group and Logistics Management magazine projects trade management software sales will soar in the next two years.

Even though companies are shipping more of their business offshore, the report found, they still rely on manual processes to manage the outsourced relationship.

The report said that most companies still rely on paper systems and spreadsheets instead of trade management software that could automatically handle trade compliance responsibilities.

The report surveyed 157 executives across a variety of service and manufacturing industries. Transportation and distribution firms accounted for a third of respondents.

Only about 10 percent of firms actually use this kind of automated system, but the report projects that nearly 40 percent of enterprises will use global trade management software by 2005.

Fueling this surge is the proliferation of free-trade agreements and a desire among U.S. firms to outsource more of their manufacturing and services to other countries.

Thirty-seven percent of respondents said one-half or more of their company's supply base is offshore. Sixty percent said they expect to relocate at least half of their supply base offshore within five years.

- Ann Saccomano