An imperative for a global trade management solution

By any measure, global trade management is a challenging process. Because export departments are responsible for managing a complex choreography of communications, people and processes, exporting consignments on-time and to budget can present real challenges.

This should come as no surprise.

The United Nations Conference on Trade and Development estimates that the average international transaction involves up:

• 27 to 30 different parties,
• 40 documents, and
• 200 data elements.

However, research* shows that 64% of businesses continue to manage complicated export processes using tools not designed for the purpose: antiquated paper-based processes, Excel spreadsheets, whiteboards and/or a range of disparate systems.  

Consequently, exporters are exposed to increased incidence of administrative errors, limited operational visibility and lack of control that often compromise stringent compliance, banking and shipping requirements and cause costly delays.

Inefficient Export Management Practices - A Costly Oversight

The hidden productivity losses and financials costs associated with inefficient global trade and logistics management practices are much higher than many exporters realise, and include:

• Delays and fines caused by compliance and documentation errors
• Erosion of margins due to unanticipated increased supply chain costs
• Restricted cash flows and higher financial settlement costs
• Long lead times
• Increased stress experienced by staff dealing with unexpected critical issues outside  of their control
• Increased administrative costs associated with retrieving files, searching for misfiled documents and photocopying

Research undertaken by the Aberdeen Group (2006, 2010)* shows that:

1/10 shipments are late, and so have to be sent by more costly transport mechanisms

13% of large enterprises report that more than 1 in 5 international shipments are out of compliance with order or routing instructions – causing delays and fines

50 % of documentary Letters of Credit contains errors

These statistics are apparent in the all too common incidence of exporters’ containers sitting on wharfs (waiting for export documentation to be approved or located) and revenue funds frozen (as Letters of Credit await approval).

Evidently, there are compelling reasons for exporters to seize  control of their global trade and logistics management processes using TridentGLOBAL and make international trade easy.

*Aberdeen Group Research (2010) benchmarking report Global Trade Management – Strategies  for Mastering Trade Compliance and Supply Chain Complexity link