The practice of streamlining the full lifecycle of international trade is known as global trade management. To dramatically increase operational effectiveness and cash flow, this applies to the order, logistics and settlement activities.

With intermediaries, buyers, and sellers like customs, banks, and freight forwarders , this practice makes it simpler to ease the flow of information, money, and items in global trade supply chains. Global trade management is more complex than domestic distribution management since it involves dealing with different languages, time zones, currencies, and modes of transportation.

Advantages:

Streamlined export order screening

Without a global trade management software solution, every sales order from an international customer must be manually reviewed by businesses to make sure the customer, and any related parties, are not on the sanctioned party list made public by various government agencies. These kinds of delays can impair an organization’s cash flow, revenue and order-to-cash cycle time. A worldwide commerce management system immediately clears a sales order for shipping or flags it for export compliance issues as soon as it is received.

Elimination of delays in order processing

The organization must make sure that all export documentation is completed and that any filing, such as the Shipper’s Export Declaration, is done appropriately before the export orders can be dispatched. A global commerce management system enables accurate completion of this, enabling timely delivery of all goods.

Visibility into landed costs

Landed costs must be manually entered in the absence of a global trade management system. This means that decision-making doesn’t always take into account actual expenses, such as product pricing, refunds and discounts. Without this, businesses risk losing money on a product they believe would be profitable.

Reduction of inbound delays

A shipment for import that doesn’t have accurate documentation may experience delays at customs. As a result, a business has to carry excess inventory or suffer from more stock-outs if these delays happen regularly. For businesses in sectors where product lifecycles are short, delays in incoming shipments are particularly costly.

Streamlining financial trade

Letters of credit are essential when doing business with a foreign client. Inaccurate documentation can result in costly delays when trying to collect money from foreign shipments. A global trade management system accelerates the procedure for gathering, organizing and verifying the accuracy of the paperwork.