1. © 2014 Integration Point www.IntegrationPoint.com
Beyond Software: The Role of Content and
Connectivity in Global Trade Management

2. © 2014 Integration Point www.IntegrationPoint.com 2
Why should you invest in a Global
Trade Management solution?

3. © 2014 Integration Point www.IntegrationPoint.com 3
Simply stated, companies can no longer rely on
manual processes to manage their global trade
operations.
US government agencies are requiring more data
be
electronically submitted and are cracking down on
violations and US personnel are being asked to
become more global in their operations.

4. © 2014 Integration Point www.IntegrationPoint.com 4
What are the critical components of a
Global Trade Management solution?

5. © 2014 Integration Point www.IntegrationPoint.com 5
CEOs and CFOs must have a clear understanding of the link
between financial performance and global trade management.
The following metrics provide a good baseline of understanding:
• % of revenues & profits derived from imports & exports
• % of revenues & profits from controlled or licensed products
• % of revenues & profits from “risky” countries or regions
• % of cash-to-cash cycle linked to trade activities
• % of vendors, manufacturing capacity, & customers in foreign
countries
The C-Level Perspective

6. © 2014 Integration Point www.IntegrationPoint.com 6
Three C’s
Software functionality is only one component of a
complete GTM solution.
Three critical components of a Global Trade
Management (GTM) solution, which many
companies overlook, are:
 Compliance
 Content
 Connectivity

7. © 2014 Integration Point www.IntegrationPoint.com 7
Compliance
Compliance is what most people associate with a GTM
solution. These capabilities focus on automating, customs
and regulatory compliance activities including:
• Facilitate product classification
• Perform restricted party screenings and embargo checks
• Create and file trade documents
• Determine total landed costs
• Assign export and import licenses
• Communicate electronically with legal authorities
• Manage customs processes and transit procedures
• Determine preferential eligibility

8. © 2014 Integration Point www.IntegrationPoint.com 8
Content
Companies must have accurate and complete trade
content
for every country they operate in and trade with in order to
successfully comply with trade regulations and prevent
customs clearance delays.
Trade Content should include information regarding
(among
other things):
 Denied parties
 Embargoed countries
 Harmonized system chapters and descriptions
 Document templates
 Duty, value added tax, excise taxes, seasonal taxes

9. © 2014 Integration Point www.IntegrationPoint.com 9
Connectivity
Connectivity is perhaps the most underrated aspect of
global trade management, but its importance cannot be
overstated.
Establishing and maintaining connectivity with a dynamic
set of trading partners, as well as keeping up with customs
modernization efforts around the world, is a challenging
task that few companies would call core competency.

10. © 2014 Integration Point www.IntegrationPoint.com 10
How will this create value for
your organization?

11. © 2014 Integration Point www.IntegrationPoint.com 11
There are several reasons why a growing number of
companies are implementing SaaS GTM solutions:
• Trade content is continuously changing and users cannot afford to
manage their operations using outdated information
• SaaS is well suited for GTM processes spanning across many
parties and users because it facilitates connectivity between
disparate parties, among other benefits
• SaaS solutions, most of which are based on a services-oriented
architecture, also serve as a centralized platform for enabling GTM
functionality across multiple internal ERP systems and other
applications
• SaaS offers many companies the opportunity to acquire GTM
capabilities without obtaining capital expenditure approval or
requiring much IT support

12. © 2014 Integration Point www.IntegrationPoint.com 12
SaaS Solutions Integrate the “Three Cs” of GTM
Source: ARC Advisory Group

13. © 2014 Integration Point www.IntegrationPoint.com 13
Extending the Role and Value of Trade Content Across the Enterprise:
Process Description
Sourcing Purchasing managers must evaluate sourcing options from a “total landed cost”
perspective, taking into account other cost factors such as duties, taxes &
transportation costs.
Network
Design
Global trade factors must be considered when determining where to locate
manufacturing plants, distribution centers, and other value chain nodes.
Product
Development
A product’s attributes ultimately define its Harmonized Tariff Schedule code which
underlies most trade processes and affects duty rates, documentation and licensing
requirements, and exportability.
Logistics Companies may be paying duties for imported products that are to be exported at a
later date; establishing a bonded warehouse or leveraging a Foreign-Trade Zone (FTZ)
may be a more efficient and cost effective strategy.
Finance Global trade processes have a direct impact on costs revenues, and other financial
metrics. Less tangible factors that influence the bottom line are cost of increased
inventory, longer cash-to-cash cycles and additional overhead caused by inefficient
processes.

14. © 2014 Integration Point www.IntegrationPoint.com 14
To download the full Beyond Software: The Role of
Content and Connectivity in Global Trade
Management by Adrian Gonzalez, visit
www.IntegrationPoint.com/LP/GlobalTradeManagement.html