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International trade has grown at almost three times the rate of global GDP over the last 10 years. This increased volume of trade has made manual GTM processes insufficient in many cases. At the same time, global expansion has increased the complexity of trade regulatory requirements placed on multinational corporations. These market dynamics improve the GTM value proposition and increase demand for the solutions.
Demand is especially strong for solutions that support special duty programs such as free trade and foreign trade zones. Free trade functionality automates classification processes that support duty minimization. Foreign trade zones offer opportunities for companies to reduce or delay duty payments, resulting in lower operational and inventory management costs.
The use of global visibility solutions is also expected to grow due to increased production outsourcing. Companies use these solutions to improve visibility into production partners' processes, decrease lead times, and lower inventory levels.
ARC is forecasting robust growth for the GTM market. However, the GTM market is broad in functional scope. Therefore, the numerous growth factors in the market will affect the various participants and market segments differently.
Source: ARC Advisory Group
Keywords: global trade management, international trade, global logistics, logistics & supply chain, supply chain management
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