As we’ve noted before, the only constant in global trade is change. Government policies related to trade issues like Brexit, the US-China trade war and tariffs, and tariff 232 on steel and aluminum have companies working to adapt.
Many companies are handling these changes with technology, fueling global demand for software systems and technological advancement in trade. Meanwhile, countries are pushing for businesses and industries to change their processes for compatibility with their requirements. All of this has combined to make automation itself a trend.
Global Trade Trend: Changing Trade Relations and Implications
Here’s a quick look at some of the global trade issues currently driving the increased interest in automation.
The negotiations around Brexit seemingly never end; nor does the associated uncertainty for the region. Outside of China, this could be perhaps the most fluidly changing major market for traders. If you engage in trade here, you must remain diligent, patient, and flexible as the changes arrive.
Countries of origin are now shifting from China to other Asian countries to avoid incurring tariffs levied in the current China-U.S. trade war. According to Reuters, container shipments in the region were down 6.4% in 2019 Q1.
There are new tariffs on steel and aluminum products entering the U.S. Canada and Mexico no longer get preferential treatment.
It takes both the right systems and expert trade knowledge to adapt to large-scale change like this. We recommend having a global trade compliance consultant as part of your team to advise stakeholders and to ensure your systems are configured properly.
Global Trade Trend: Automation
As traders adapt to global trade trends, they’re counting on automation to help them compete.
Automate your systems, reporting, and communications to stay ahead of the pack. Automating applicable processes helps reduce costly mistakes from your bottom line.
Next-gen software functionalities, like those offered in SAP GTS, can be optimized to reduce trade risk through concise reporting and auditing functionalities. This removes much of the worries and risks around global trade. Your organization reduces its risk exposure while keeping products on customers’ shelves—not languishing on a dock or in a warehouse somewhere.
Supply chain partners are keenly interested in achieving and maintaining regulatory compliance, and are using software to ensure it happens. Beyond error reduction, automation can help speed information processing overall, boosting speed-to-market.
Expert Help is Vital to Long-Term Trade Success
Shifting global trade trends increase the risk of international trade. You must adapt to changing government policies and requirements effectively, or risk being bogged down. That means staying keeping your trade operations flexible and efficient. Make sure you have all of the expertise you need at the ready: Get a trade and technology partner to help you adapt and achieve long-term trade success.