If you’re a business engaged in international trade and haven’t yet discovered Global Trade Management, you’re likely missing out on a number of time and money-saving efficiencies in your supply chain.
Simply put, Global Trade Management is the process of organizing supply chains and automating trade-related processes to reduce landing costs, optimize time in transit, and minimize costly administrative errors that lead to fines and penalties.
International trade is complex and rife with administrative tasks and details that can easily get lost in the day-to-day tasks of running a business. Global supply chains require a great deal of attention to detail and, with the right partner, businesses can not only manage their administrative burdens but do so in a manner to realizes significant costs savings.
Here are just a few of the reasons more, and more international businesses are using Global Trade Management solutions:
Supply Chain Evaluation
Just how well do you know your international partners and vendors? Do they follow internationally recognized standards? Are they located in the most strategic place to optimize your supply chain?
Global Trade Management specialists help companies refine their partnerships with vendors and suppliers to ensure they optimize quality and efficiency. They also help importers stay abreast of changes to regulatory requirements, which can occur at a moment’s notice and affect how shipments are processed.
In many cases, GTM specialists can help fill gaps in a company’s staffing, so that those dealing with trade-related matters have virtual in-house expertise on the more challenging and complex aspects of managing global supply chains.
Exporting from the United States into international markets can often get bogged down in administrative headaches and compliance. For example, some countries have free trade agreements with the U.S.; others don’t. Those that do may not necessarily have free trade for all products or require a product to meet certain requirements in its composition in order to qualify for the removal of tariffs.
In some cases, restricted party screening is required to ensure an overseas partner isn’t on the U.S. blocked list. These lists are regularly updated and include individuals and organizations that have been singled out as being tied to an activity that is contrary to the security or economic interests of the United States. Doing business with a restricted party can result not only in fines but greater government scrutiny and the potential for commercial-reputation damage.
Global Trade Management specialists perform restricted party screening on behalf of exporters, not only at the time the relationship with the party is established but on an ongoing basis. They also ensure various licenses and paperwork are in order so that businesses are able to explore new markets with ease and reduced risk exposure.
Frequent exporters and importers with the aim of broadening their market presence and ensuring their processes run smoothly will want to have strong data management to support their efforts.
Global Trade Management specialists also use technology to help centralize global trade data to ensure accurate classification of products, preventing costly cross-border delays and penalties. The technology solutions also provide businesses with a centralized database of regulatory policies, frameworks, and rules that help businesses ensure they are able to find classifications for new products and better manage the ongoing classification process.
Beyond this, Global Trade Management solutions help manage and simplify licensing requirements, free trade qualifications, valuations, Partner Government Agencies’ requirements, and much more.
As the global market continues to become more accessible, businesses both from developed and developing nations will use it to seek out new opportunities, partners, vendors and cost efficiencies.