days, the software will begin sending
alerts to the appropriate people as the
delay approaches a day or a day and a
half, McCollum says. “The system
knows that if you shut down that
production line, it will cost X dollars
in unfilled customer orders. It lets
you decide where to focus your risk-
adjustment efforts.”
; Gaps and inconsistencies in execution. In an international transaction, the failure of a single participant to perform as promised has
consequences both upstream and
down. That’s why Integration Point
and others integrate disparate part-
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ners’ systems and processes. “It’s important to streamline and ensure accountability of all the involved parties while
ensuring the compliance, credentialing,
and confirmation of all transactions,”
Irmen says.
GTM software can also help to ensure
that each link in the supply chain does its
part. A system that tracks whether a task
has been completed, who completed it,
what should happen next, and who’s
responsible keeps the international trade
ball rolling, Heimbeck says.
One risk-related task that’s often overlooked is the purchase of cargo insurance,
which many people buy on a per-shipment
basis. But doing that increases the chances
that the shipper will get the coverage
wrong or even forget to insure altogether,
Heimbeck warns. Trade Tech’s system
addresses that problem by automatically
sending shipment details to its insurance
partner, Chubb Commercial Insurance,
which then creates an insurance certificate.
What’s more, shippers that use GTM software—and can therefore document their
shipments’ chain of custody—may qualify
for lower insurance rates.
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Think globally, execute locally
In all of these examples, a single theme
emerges: GTM software offers an effective
means of minimizing supply chain risk
because it permits centralized control of
business processes that typically are
decentralized.
The benefits of centralized control at an
enterprise level are clear. “My mantra is
‘think globally, execute locally,’” says SAP’s
McCollum. Operational details should
not be managed globally, but managers
should think about them that way, he
adds. “You want a global strategy for trade
compliance.”
Not only does GTM software help companies maintain better control over their
transactions, it also monitors the execution of those tasks and sends reports back
through the supply chain for evaluation
from the perspective of corporate strategy, McCollum adds. “How do you know
you’re executing against that strategy
unless you cascade information down and
get feedback at the local level? That’s
where the power of GTM comes in.” ;
