A recent article in Supply Chain Digest (June 23, 2011) discussed results from a Gartner study that are interesting from the perspective of global trade management. According to Dan Gilmore, SC Digest editor, of the 300 respondents “34% say they consider supply chain the leading source of their company's competitive advantage, 40% identify SCM as one of several sources, and 26% see it as largely a commodity function.”
Further, according to the survey results, improving supply chain productivity and efficiency topped "cost reduction" as the number 1 supply chain priority, while cost reduction was number 2. As shown in the table, improving efficiency is expected to dominate in 2012 as well.
One sure way to improve productivity and increase efficiency is to think beyond the domestic sphere and optimize your supply chain for cross-border transactions. Any company that depends on parts or goods sourced from outside their home country should consider a global trade management solution that does the following:
- Leverages free trade agreements across your supply base to reduce cost of goods sold (COGS) by 2 – 3%
- Provides supply chain visibility that can improve cash-cash cycles by 4 – 5 days
- Automates import compliance to reduce entry costs by 30% or more and better manages risk
- Manages global logistics to reduce landed costs by 5% or more
A global view of your supply chain is key to achieving the kind of productivity gains and cost reductions that will keep your company competitive.
Read more about international trade management in this informative white paper, or read more about how fashion giant, Perry Ellis, reduced freight overage costs using Management Dynamics’ International Trade Management solution.
This post was published on July 11, 2011 and updated on August 8, 2017.