Global Trade Management — January, 2009

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Going Global Calls for a Whole New Level of Process Collaboration, Aberdeen Study Reveals
So-called multi-enterprise supply chains are the result of companies extending their sourcing, manufacturing and marketing reach globally. With no single business capable of providing all critical functions in-house, there is a pressing need for process integration and collaboration, according to a new report by the Aberdeen Group. Major pressures experienced by companies today include rising costs, global competition and the need to reduce cycle times. To achieve a multi-enterprise supply chain, companies must have two-way electronic connectivity with partners, as well as real process collaboration. The latter term refers to an advanced stage of integration which includes involves business processes as well as data transfer. Drawing on responses from more than 117 companies, the report finds...
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Going Outside the Walls: Companies Debate the Merits of Software-as-a-Service
Can you trust your software vendor with critical data and applications that are sitting in a server at a remote location? The model offers numerous advantages--and some caveats as well.
A dozen years ago, Gregory Bostick wouldn't have considered buying business software that was installed and maintained off-site. "I would have said, if the internet gets up to the speed of a mainframe, it would be a great idea," says the vice president of transportation with Pinnacle Foods Group. Six or seven years ago, when that goal was essentially reached, Bostick still had concerns about the level of vendor support for hosted software. Today, however, it"s a whole new ballgame.
Pinnacle, producer of such big-name consumer brands as Duncan Hines, Hungry Man, Aunt Jemima and Log Cabin syrup, relies on a transportation management system from LeanLogistics Inc. The application is delivered under what has come to be known as the Software-as-a-Service (SaaS) model. As such, it resides within the vendor's own servers and is...
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Data Consolidation Improves Import Process at Leggett and Platt
A systems analysis at this diversified manufacturer revealed that data needed to support supply chain processes, particularly import processes, was dispersed across many different applications. This created inefficiencies and a lack of adequate control over important customs compliance issues. Using a solution from Management Dynamics, Leggett and Platt consolidated the data into one central point, enabling total order visibility and compliance monitoring....
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In an Outsourced Supply Chain, Lockheed Keeps the Raw Materials Flowing
There's no margin of error in the tightly scheduled Joint Strike Fighter project, despite the involvement of four principal partners and thousands of suppliers.
You would be hard-pressed to come up with a bigger supply chain challenge than the one created by Lockheed Martin Aeronautics Co., when it took on the role of prime contractor for construction of the F-35 Joint Strike Fighter (JSF). Lockheed wanted a timely and accurate forecast of all its raw-materials needs, for a production network involving two other principal partners, nine countries, 40,000 individual parts and several thousand suppliers.
There were other complications. Large portions of the JSF are being outsourced to manufacturing partners around the world, with Lockheed performing final assembly. Mike Jones, who oversees information systems and technology for Lockheed, describes the contractor's role as "a weapons systems integrator at the top of the food chain." Below that are multiple tiers of independent suppliers, all the way down to small machine shops.
Many of those entities have little or no direct contact with one another, let alone the ability to convey forecasting or demand data on a real-time basis. Yet the JSF production line, when fully up and running, will have precious little tolerance for error. Lockheed intends to...
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When It Comes to GTM, the Accent's on Management

Quite a few enterprises are into global trade, but many of those are unable to step back and assess their performance. There are many issues to deal with, including governmental and regulatory compliance, containing costs, and improving one's competitiveness. With cross-border trade transactions amounting to more than $10tr in 2007, global trade management is nothing to take lightly, says Marisa Brown, APQC senior program manager. But there has to be a coordinated management approach to GTM that encompasses all company departments—logistics, tax, finance, legal and operations....
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Vanguard Logistics, RoadLink Link Neutral Ocean Service, Domestic Drayage
Vanguard Logistics Services is partnering with RoadLInk to create a new national inland intermodal service. Dubbed DrayMate, the initiative combines neutral ocean services with a neutral drayage option and supporting technology. Together the companies are offering a transparent, end-to-end service to the U.S. and international non-vessel operating common carrier (NVO) community. By teaming up with RoadLink, Vanguard has created a national drayage presence with a common information-technology system. All of the company's domestic and international offices will have immediate...
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APL Will Add Miami as Port of Call in Two Central America Services
Beginning Jan. 6, APL will call the Port of Miami as part of two Central America services, CAX and CX2. Miami will be the only U.S. port of call for the service connecting Honduras, Guatemala, Nicaragua and El Salvador with APL's major European and Latin American trade routes. APL's fastest connections to Europe and South America go through Miami, according to Carlos Velez, vice president and managing director in Latin America. The twice-weekly CAX is one of three APL routes serving Central America. By routing through Miami, shippers using the CAX can connect to...
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You Can't Do Global Compliance and Security By Hand
"I can't see supply chain professionals effectively managing global trade processes in a manual environment any longer," says Rennie Alston, president of American River International, a logistics services provider. Time was that moving cargo cost effectively, timely and safely was your only concern, but not any more. Security rules and regulations mandated by various government agencies make compliance management a requirement for any company today. That calls for senior management buy-in, education and training, assessing your internal policies, breaking down silos in your organization and ensuring that your providers are complementing your efforts, Alston says. Automation is the key.....
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Ask The GTM Expert: This month, James Preuninger, CEO of Management Dynamics, is available to answer your GTM questions.

Past Global Trade Management Issues:
November, 2008
August, 2008
May, 2008
February, 2008

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