Imagine an economy that didn’t import or export? It would only be a matter of time before you were at a loss for fancy chinaware, the strong aroma of Cuban coffee, the fine craftsmanship of Italian marbles, and exquisite Pashmina shawls, along with a range of other offerings. We won’t go into the details of the global trade and the impact that it has on our economy, much less our everyday lives. But here’s something that might interest you – according to a report by Integration Point, world trade is expected to increase by four times, reaching up to $68.5 trillion by 2050. As more and more business’ cross borders, it is important to have a system that can facilitate a stronger and faster supply chain. And that’s where Global Trade Management comes into the picture.
What is GTM
It wouldn’t make sense to delve into a subject without explaining the basics. So, here goes. Global Trade Management (GTM) refers to a platform that streamlines global trade across various domains such as order, logistics, and settlement activities with a focus on improving cash flow and operational efficiencies. Previously GTM was only concerned with moving a shipment from one place to another with minimal costs and time. As with every other practice, the functions of GTM have improved over the years and currently, GTM services include the complexities of production, sourcing, design, and the entire scope of the trade from its origin until the end.
Trends in 2017
Global Trade is a broad subject that consists of many variables including exchange rates, international policies, political ties between countries, and economic growth among others. As these variables continue to change, here are some of the top trends that organizations can expect to spot in 2017.
1. Incoming App-dates
According to a study by ‘AEB and DHBW: Global Trade Management Agenda 2017’, 90% respondents considered logistics and business apps to be a competing factor in the times to come. A digital revolution is on the cards as more and more players demand smart, technologically advanced solutions that can streamline operations and improve efficiency.
2. GTM to Step Up
The last few years has seen the supply chain sector evolve with the industry becoming more organized. As before, companies will continue to outsource their trade transactions to GTM. There will also be a growing preference for automation and improved technological integration. And given that implementing new systems is no easy task, many organizations are up for the challenge in light of better and more organized process.
3. Lower risks. More Efficiency.
Integration Point reported a study where nearly 40% of supply chain disruptions resulted in a loss of up to $1 million. With GTM, traders get to experience the benefit of a single platform that handles changes related to new laws and regulations. It also creates a smooth system that assesses various options to mitigate risk and identify areas of maximum cost-benefits.