The most important change in today’s global marketplace is the rapid increase in business-to-business e-commerce. By 2020, the global B2B e-commerce market is expected to reach $6.7 trillion worldwide, with the United States representing $1.9 trillion and China, $2.1 trillion of that amount.
B2B e-commerce sales in the United States alone were projected by Forrester Research to hit $780 billion in 2015 and account for 12.1 percent of all B2B sales in five years. This sales method represents a gold mine for companies that can capably meet the requirements of business buyers, a far more daunting task than selling to consumers.
This strong increase in B2B e-commerce sales is only achievable through today’s supply chain technology and processes, which allows manufacturers to manage extraordinarily complex international networks. Global trade management solutions are key to improving efficiencies, minimize risk and ensure on-time delivery while sourcing, producing and shipping from a variety of new and diverse regions.
The scope and capabilities of GTM solutions have evolved significantly over the past two decades. Today, GTM solutions include functionality to streamline and automate processes related to global logistics, international customs and regulatory compliance, and preferential trade qualification.
The increasingly global marketplace and expansion of the B2B e-commerce market is driving more companies to initiate GTM projects. Supply chains will play an important part in how much companies can profitably grow their B2B e-commerce channels. Optimizing strategy and performance with a multichannel approach into higher profits requires a significant look at end-to-end processes, investment in a flexible and expandable platform, development of key performance indicators, and the ability to continuously improve and adapt a supply chain to market demands. GTM software, which enables a holistic view of today’s global supply chains, is a key piece for achieving B2B e-commerce success.
Jim Preuninger, CEO, Amber Road