It’s Complicated June 16, 2008
Posted by Meg Sewell in Inovis Solutions.Tags: Global trade, global trade complexities, international trade logistics solutions, logistics, Supply Chain Digest
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I came across this great article on Supply Chain Digest talking about the specialized technology needed with global trade. Apparently outsourcing manufacturing to loser-cost countries has not paid off as well as was originally expected. This is in large part due to the increased cost and complexity of transport across global supply lines and international borders. The article goes on to say that part of the reason for this is the fact that traditional systems do not have the ability to plan and execute all phases of international moves, including compliance with international trade regulations and calculation of the fully landed costs.
And while the problem is indeed large, there is a solution. A “new generation” of Transportation Management and International Trade Logistics solutions enable companies to create a controlled and well managed process infrastructure that can deliver cost reductions and efficiencies in global supply chain delivery, while also complying with trade regulations. They also provide visibility to the physical whereabouts of goods at any point in time, as well as the fully landed cost, and can estimate these costs for extended supply chain network design alternatives to give management a better picture of the ramifications of outsourcing decisions. In sum, these new generation transportation management solutions are the remedy for the complexities of global trade.
Do you agree with this article? Tell us your thoughts on the matter!
