The global trade world has been buzzing about Amber Road’s acquisition of Shanghai-based EasyCargo for about a month now, since it introduces robust China Trade Management functionality into an already strong compliance offering. Gartner offered its “First Take” on the acquisition and what this move means for Amber Road customers and the global trade management industry as a whole:
“(Processing Trade) is similar to other duty programs, like the U.S. foreign trade zones program, but its unique requirements make it difficult for software vendors to construct one application to handle all duty programs. Until now, Amber Road has only been capable of supporting clients importing into and exporting out of China, and not to manage the in-country processing and manufacturing of goods. Amber Road customers can now rely on a single cloud-based provider for both import/export compliance and support for Chinese customs processing under the Processing Trade regime.”
Gartner adds that the move gives Amber Road a clear competitive advantage.
The catalyst for the acquisition was GE, who recently finalized its contract with Amber Road and advocated for integration of the two companies’ capabilities. Once Amber Road executives looked into EasyCargo, they were seriously impressed – so much that they worked for months to acquire the company and create a launching point for Amber Road’s sales and marketing endeavors in China and the Asia-Pacific region.
The powerful combination of import/export compliance with China Trade Management offers companies a “round trip ticket” to China. CEO Jim Preuninger explains the benefits of the acquisition:
“What adding EasyCargo does is allows us to go deep when (our customers) bring raw materials in, manufacture and export out,” he said. “It’s difficult to track this through the manufacturing process. It’s an amazing piece of technology these guys have developed. Now we have the roundtrip ticket. We can get you get in, manage everything inside China, and then get you back out.”