Regulations and Changes in Trade Agreements are Increasing the Complexities in Global Trade Management

Overview

The shipping industry faces major concerns when there is a change in the ruling party in a country and there is a shift in trading practices. The change in the flow of trade results in a lot of hurdles for business organizations. For instance, President Trump decided to pull the US out of the Trans-Pacific Partnership (TPP) and to renegotiate North American Free Trade Agreement (NAFTA). The trade management software helps in assessing these parameters and handle the changes in the trade policies into their businesses.

Key Areas

Risk Mitigation – The trade management software can help organizations when there is uncertainty in trading decisions and tap new opportunities arising due to the implementation of new policies. The increasing complexities arising due to government regulations and the ability to forecast the level of risk that may arise due to a decision for businesses are driving the GTM software market. The software helps in supplier management programs and maintain the brand image, as a single mistake in any stage of the supply chain can tarnish the brand name.

3PL – The third-party logistics providers have evolved over past 4-5 years and more shippers are outsourcing their compliance management tasks to third parties. More and more companies are moving away from excel sheets and adopting transportation management systems as well as global trade management software to gain more in-depth updates and automated recording.

The changes in the trade policies and enhancement of the supply chain visibility, the demand for trade management software is expected to grow with more adoption from businesses organizations to reduce the risk arising due to dependencies on trade partners. Various functions can be optimized with adoption of global trade management solutions including import management, export management, shipping visibility, production tracking, transportation management, among others.  The global trade management solution helps in optimizing the entire supply chain processes. The global trade management solution can help organizations to manufacture at any location of the globe and transport to any location in the world, along with helping in routing products to different countries. The GTM software is useful when an organization enhances its partner ecosystem and foray sales to different countries.

– Swarup Bhowal,
Research Analyst – ICT,
Infoholic Research