The global trade management (GTM) systems market is one of the fastest growing segments of the software industry because "simply stated, companies can no longer rely on manual processes to manage their global trade operations," writes Adrian Gonzalez of ARC Advisory Group in a new white paper sponsored by GTM provider Integration Point.
"Although global trade volumes will decline this year due to the weak economy, the costs, complexities, and risks of moving goods across borders will continue to grow," Gonzalez writes. "Customs agencies around the world are moving away from paper-based filings to electronic-based communications, preferential trade agreements are on the rise, and trade initiatives, such as '10+2' in the United States, are presenting importers and exporters with a whole new set of challenges."
Software functionality, however, is only one component of a complete GTM solution, Gonzalez notes. "Companies often overlook (or underestimate) the importance of global trade content, particularly the role it plays in extending the value of GTM across the enterprise to areas such as global sourcing, network design, product development, and strategic planning," he says. "The same is true for connectivity. Global trade processes are inherently network-centric, involving the exchange of information between many external parties, including customs agencies, freight forwarders, customs brokers, and suppliers. Establishing and maintaining connectivity with a dynamic set of trading partners is an integral component of GTM, but one that many companies fail to consider when evaluating solutions.
"The ARC white paper highlights the importance for companies to build a global trade compliance program that includes not only software functionality to meet regulatory requirements, but more importantly, provides baked-in trade content and supply chain connectivity that is already established," says Clay Perry, senior vice president - global markets, at Integration Point.
To download the full report, visit www.integrationpoint.com.Read Full Article
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