Over the last few decades, globalization has simply become the way we do business. In fact, we are now entering what Supply Chain Digest calls the "Globalization 3.0" era, putting new demands on both sourcing and export processes, with excellence in global trade management now a key determinant of overall company success. Is your organization positioned to compete in this new era?
Keeping pace with new research and technology is imperative for companies looking to remain agile and automated in their global trade management practices. With this in mind, Supply Chain Digest recently undertook a survey to better understand global sourcing and trade management practices, processes and technologies. In the resulting report, Supply Chain Digest identifies several important global trade management trends, including:
Globalization as a source of revenue in addition to lower cost sourcing: prior to the financial slowdown, companies were mainly focused on outsourcing and low cost country sourcing. Now, companies are increasingly focused on finding top line growth by penetrating faster growing developing economies that have a rapidly growing middle class.
Proliferation of free trade agreements: with the growing number of free trade agreements, many companies are reassessing their sourcing strategies to take advantage of duty savings opportunities. There are currently more than 500 free trade agreements around the world, each containing their own set of rules that governments are constantly updating (check out this white paper for more information on how you can take advantage of free trade agreements).
Increasingly complex global regulations: companies are faced with an increasingly complex set of regulations for importing and exporting. In general, taxes on business are also going up, meaning a highly tax efficient supply chain is a source of competitive advantage. Companies are increasingly turning to duty minimization opportunities such as free trade agreements and Foreign-Trade Zones.
The need for improved visibility: globalization brings complex, multi-tiered supply chain operations that must be synchronized across multiple geographies and trading partners. By enhancing visibility, companies can reduce supply chain risks, improve responsiveness, and increase customer service levels.
For more information on Global Trade Management trends as well as Supply Chain Digest’s survey insights, download the full 2016 Global Sourcing & Trade Management report.
