Will 2005 Validate Global Trade Management and Unify Financial and Physical Supply Chains

To prosper in a highly competitive global economy, where competition can come from Arkansas or Argentina, enterprises have to take advantage of the cost advantages afforded by the global availability of goods and services. At least, if one does not taking advantage of the international availability of reasonably high-quality goods, low-cost labor rates and efficient, reliable transportation, then the competition likely will.

When we talk about the risks of globalization, many are usually referring to the threat of domestic jobs moving overseas. Global trade compliance is rarely discussed, even though it poses a risk that may affect almost every manufacturer that either imports or exports. Namely, getting these goods and parts shipped from one country to another is a daunting task and needs the support of GTM software and a service provider with a combination of global trade domain knowledge, proven processes and international trade best practices.

All of the nearly 200 countries in the world have individual governmental requirements for importing and exporting goods, where one has to account for factors like tariffs and duties, country-to-country preferences, and anti-dumping laws, with the danger of incurring hidden costs at every step. If that is not complex enough, the events of September 11, 2001 have increased the scrutiny countries place on global trade, which also impacts costs adversely. According to the Brookings Institution, the cost of slowing the delivery of imported goods by just one day because of additional security checks may amount to $7 billion (USD) per year. Stringent new documentation and homeland security requirements are placing serious legal and financial consequences on importers and exporters for violating these constantly changing trade regulations. The burden is on the importer/exporter to know exactly what the regulations are and how to comply with them.