Increasingly, organizations are realizing that, especially in the supply chain, knowledge is power and a global reach is the best way to achieve growth— realities that are driving the adoption of global trade management (GTM) offerings.
The market for these products is growing, and likely will continue to grow at a robust rate over the next few years Research and Markets in a press release forecasted, for example, that the GTM software market will grow at a compound annual growth rate (CAGR) of 10.92% between 2013 and 2018.
A study published this week by Supply Chain Insights for Amber Road and titled Imports & Exports Made Easier with Global Trade Management Software pinpoints the trends this way:
The most fundamental capability is effectively managing global flows in and out of country borders. With these flows, there is friction. There is also opportunity. To manage the opportunities and risks requires the careful management of the intricacies. It comes down to details. This includes governmental compliance, restricted party screening, preferential trade arrangements, free trade zones, tax efficiency, and trade finance.
More and more, organizations need to do business with customers all over the world and are looking for ways to expedite the process while adhering to the necessary regulations. However, it's a prospect that may seem daunting—although many organizations are successfully using these products.
The study, which polled 99 manufacturers, retailers, wholesalers, co-operatives, and distributors who import / export products, found that most organizations believed that they are making the most of the capabilities of these solutions. The study defined GTM software as a solution that helps organizations automate trade compliance checks and validation in order to automate compliance and generate international shipping documents, calculate duties, file information electronically with governmental organizations, and track international shipments.
The survey found that two thirds of those surveyed were satisfied with their GTM software. Organizations who had implemented these solutions achieved quick return on investment reported average ROI of 13 months, with 70% of respondents stating that they had achieved a ROI.
At the same time, getting to the right solution can be complex. The average company uses solutions from three different vendors, the survey found. Take a look at the rest of the results in the infographic below. Then, let us know whether your organization is using GTM software—and what your experiences have been—in the comments section below.
— Hailey Lynne McKeefry, Editor in Chief, EBN