Global Logistics and Supply Chain Strategies - July 2008 - (Page 70)

Why Do So Many Seem Averse to Employing GTM Technology Today? BY WAYNE SLOSSBERG Wayne Slossberg is vice president of QuestaWeb Inc., a Westfield, N.J.–based provider of Web-based global trade and logistics management solutions. Visit www.questaweb.com. M any articles discuss the challenges of global trade management (GTM). Experts speak to the myriad concerns manufacturers confront doing business in a global marketplace, not to mention the recurring topic of the complex supply chains extending thousands of miles beyond U.S. borders. The consensus seems to be that it is not easy to be compliant in importing and exporting activities in this post-9/11 world, yet there are serious ramifications at every stage of the supply chain for failure to adhere to complicated regulations that seem to change daily. There is little doubt that technology has an important role to play in simplifying complexity by automating many of these tasks, and vendors stand ready to tout the advantages their applications hold over their competitors’ offerings. Press releases daily extol the roll-out of the latest system innovations and features. Case studies praise the supply chain efficiencies and economies achieved through technology implementation. Feature articles highlight the successes individual firms are achieving with logistics or so-called GTM systems. So exactly what type of technology can manage and automate global trade? Should companies opt to buy it or rent it? What advantages does being Web-based offer, if any? Is all the information available over the Web free for the taking? How many pieces of information will need to be bought, and what is the cost of integrating them all together? Such questions just scratch the surface of those that can and must be posed by would-be purchasers. Because GTM means something different to everyone, there is no one answer to any of these questions. Each can be answered in many different ways, depending on the perspective of the person asked. If there is one truism that does exist, it is that few companies today possess a comprehensive GTM system; most own just bits and pieces of a total solution. Part of the reason can be traced to the functionality firms seek to acquire. Some companies want to focus solely on logistics; others see compliance as the overarching reason to procure a software solution. Some companies that seek to “see the overall picture” might throw a supply chain visibility application into the mix. Because most firms start with one business purpose in mind when they acquire technology—and almost always expand to another business objective later—corporations should seek to identify software solutions that offer as many integrated applications and functions as possible when researching what GTM system to procure. Yet, amidst all the claims and vendor hype, the real issue about GTM is always lost. The simple reality is this: The international supply chains of many large companies are at best only 50 percent automated, according to Aberdeen Group. For every one firm that has implemented GTM technology solutions—partial or otherwise—there are hundreds that have not. This rather surprising fact brings us to the real issue about GTM technology: Why do so many companies competing in today’s global environment have such an aversion to investing in GTM technology? Regardless of size, companies are sourcing, importing and exporting products. It is the only way to stay competitive in today’s marketplace, according to National Association of Manufacturers report. It warns that one in three small- to mediumsized U.S. manufacturers could go out of business entirely unless they enter the global marketplace. Many firms, recognizing this fact, are spending thousands of dollars to amass staffs of import/export professionals and compliance experts. Others have had these resources in place for years. Regardless of where a company stands along this continuum, the question remains: What is the point of securing the best staffs available to oversee trade and compliance functions and then short-circuit their capability to attain the desired results by not giving them the technology tools they need to do their job effectively? It is just plain counterintuitive. Consider what staff could achieve if they had a GTM system that interfaced with the company’s ERP system, allowing all the required documentation for compliance and product movement from 70 JULY 2008 http://www.questaweb.com

Table of Contents Feed for the Digital Edition of Global Logistics and Supply Chain Strategies - July 2008

Global Logistics and Supply Chain Strategies - July 2008 Contents Editorial GL&SCS Exclusive Fastforward Up Front Introduction Menlo Worldwide & Electrolux PathGuide Technologies & Tile City Servigistics & Juniper Networks Transplace & Rock-Tenn ClearOrbit & Blue Bell Creameries Cadec Global & Northwest Food Products Transportation CaseStack & Greystar Products NGC & Parigi Group Supply Chain Consultants & Constar TransGroup Worldwide & Surgiquip Terra Technology & Campbell Soup Baxter Planning Systems & SGI Cadre Technologies & Kansas City SmartPort TransportGistics & FMC Technologies DSC Logistics & Tree of Life FORTE & Vera Bradley Penske Logistics & Eaton Cardinal Logistics & Weyerhaeuser JPMorgan & Black & Decker Opinion Opinion Industry Voices

Global Logistics and Supply Chain Strategies - July 2008

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