Product sourcing has evolved from simply finding the best value or shortest lead time. Today, the procurement and manufacturing of components and assemblies in different regions of the world is based not only on price and lead time but also supply-chain security, trade agreements, taxes and other duty preference programs.
As multinational corporations gain experience working in and selling to different parts of the world, they regularly evaluate different options in sourcing, manufacturing and distribution globally. Without the appropriate information, decisions could be made that are less than optimal.
Global trade platforms with the information and tools necessary to determine the full cost and related considerations of sourcing and manufacturing in various parts of the world are now available. With these capabilities, corporations can confidently make better sourcing and manufacturing decisions.
Along with making decisions based on complete and updated information, organizations need the ability to manage the flow of products as they are exported and imported in different countries. In order for companies to ensure the smooth flow of products, they need an integrated platform with the capability to manage the regulatory transactions for both the exporting and importing countries simultaneously.
Having an integrated platform containing their global transactional information as well as the built-in capabilities to identify efficiency and savings opportunities globally, organizations can continuously evaluate whether or not they are still leveraging the best options available to them.
Last year, I wrote that in 2010 we would see more companies managing trade in an integrated fashion and eliminating inefficient silos. This is taking place, and leaders preparing themselves with knowledge to comply in a global economy and leverage up-to-date information will have an advantage over those operating with limited visibility.