{"id":3901,"date":"2018-07-04T12:00:10","date_gmt":"2018-07-04T09:00:10","guid":{"rendered":"https:\/\/gcelogistic.com\/?p=3901"},"modified":"2024-09-23T09:11:06","modified_gmt":"2024-09-23T09:11:06","slug":"secrets-successful-global-trade-management-program","status":"publish","type":"post","link":"https:\/\/gcelogistic.com\/secrets-successful-global-trade-management-program\/","title":{"rendered":"The Secrets to a Successful Global Trade Management Program"},"content":{"rendered":"

What is Global Trade Management?<\/h2>\n

Global Trade Management (GTM) optimizes the entire lifecycle of global trade, from order placement to logistics and final settlement. This is done to increase the efficiency of operations and subsequent cash flows. Companies that follow the philosophy of global trade as a cross-functional and system-spanning process can derive vast benefits from GTM practices. However, GTM practices involve crossing the traditional function-based silos within companies. As a result, companies may have to endure a period of poor performance that may span over years before they can fully derive the benefits of implementing GTM solutions.<\/p>\n

Conventional GTM systems focus on enabling organizations to comply with innumerable rules that govern how products and components cross national boundaries. While trade compliance<\/a> is still the primary focus, several GTM system vendors are expanding the capabilities of their solutions. For example, some systems feature an expanded concept of compliance that checks whether products were produced, packaged, and transported according to user-defined parameters.<\/p>\n

Other systems are adding functionality that allows for the coordination of the tangible flow of goods, grants total visibility for products and inventory, checks if the specific materials are subject to preferential treatment under trade agreements, and facilitates the processes of settlement.<\/p>\n

Key Components of the ideal GTM solution<\/h2>\n

GTM is challenging for many organizations because it requires enterprise-wide implementation. In today\u2019s outsourced and decentralized business landscape, gathering the necessary expertise and resources for a global trade management program is difficult.<\/p>\n

The success of a global trade management program lies in its comprehensiveness. The ideal global trade management program needs to accommodate sourcing, transportation, purchasing, compliance, sales, and expertise in accounting. Conduct and formally document a thorough analysis of an organization\u2019s export and import procedures. The procedures that are documented will require each division to develop processes and procedures that revolve around the established goals. Only then will the organization be able to develop and implement a global trade management program that is comprehensive? We recommend reading Improve Domestic and Global Transportation With TMS<\/a><\/p>\n

Goals for implementing GTM programs<\/h2>\n

The essential goals of any global trade management program have to include:<\/p>\n