The global trade management software market has been growing at a rapid pace this decade, driven by the rising international trading activities and cross-border e-commerce businesses. Due to the immense benefits that trade management software can offer, companies are increasingly are nowadays adopting this software to plan, monitor, execute, and optimize all aspects of their trading activities. With the development of other supportive technologies like automation, the global trade management software market is expected to further flourish over the next five years.
What is Trade Management Software?
A good trade management process plays essential role to improve productivity, allow real-time access to different supply chain components, and increase visibility across the entire organization; this is where trade management software comes in to support and facilitate such processes. Therefore, trade management software refers to the IT solution that offers effective support to logistics management, regulatory compliance, and financial management relating to the import and export processes.
International trading is a complex, multi-faceted process that is essential for the success of large and medium sized companies in the global market. To balance and manage all the logistics, regulations, and finances related to importing and exporting goods, these companies employ trade management software to streamline and automate trading processes, enabling businesses to determine the total cost of their trade activities.
How is Global Trade Management (GTM) Software Helpful?
Global trade management software is helpful with offsetting the rise in the number of international trades and fuel expenses which is increasing the overall operating cost of global logistics and transportation. This has propelled more trading companies to implement trade management software that helps them to minimize their operating costs and increases their operational efficiency.
A recent industry survey shows that GTM software brings down the transportation costs by approximately 4%-10% and helps companies to enhance links between transportation nodes, facilitating cheaper and faster deliveries. GTM software aids in transportation planning and sourcing, enhanced fleet management, transportation business intelligence, workflow management, billing and claims, customs management, and document management.
Also, GTM software offers real-time visibility of shipments in transit, customs clearance status, better cost control, inventory levels forecast, and supply chain performance. Many GTM software solutions also provide exception-based process management platforms that allow staff to micro-manage the entire supply chain network operations.
Global Trade Management Software Market Overview
According to the recent market research from Technavio, the global trade management software market size will grow more than USD 632.5 million from 2018 to 2022, registering an impressive CAGR of over 12% during the forecast period. The rising need for an efficient supply chain will be one of the primary growth factors driving the growth for trade management software. The growing cost of global shipments, extended delivery time, and variations in lead time is influencing the need for supply chain visibility and optimization.
Global trade management software providers are also integrating predictive analytics tools to enhance the supply-demand cycle and communication between transportation carriers. Capacity management is also being incorporated into trade management software to improve the process of supply chain management in enterprises. Companies can now analyze the effect of switching between suppliers from different countries on the cost of goods sold by using the analytic tool provided in GTM platforms. Thus, the growing need for improved supply chain efficiency is also driving the growth of this market over the next five years.
In terms of regional markets, the Americas is currently accounting for the majority GTM software market share. Factors such as the increasing need for faster response to market, the reduction in operational costs, and the need for efficient global trade compliance, are fuelling the growth of the market in this region. Moreover, the US is also the home to several world’s largest trade management software companies, including Amber Road, The Descartes Systems Group, and Integration Point.
Global Trading Management Software Market Trend: Automation Leading the Growth
The growing number of trading companies are increasingly automating their global trading management process to counter the incompetence of manual processes, delays, and complications in exports and imports and non-compliance penalties. The automation of trading processes using global trading management software improves the quality, accuracy, and reliability of the processes. Several companies have started to automate the trading process with GTM software to effectively meet the global trade requirements and sustain in the highly competitive market. Some of the automated GTM processes include import management, export management, duty management, financial transactions, and restricted party screening.
Automation of the trading processes using GTM software improves the quality, accuracy, and reliability of these processes. Automation of trading process using GTM software enables trading companies to meet the global trade demands and sustain in this highly competitive market. This will result in an increase in automation using GTM software, which will be one of the key trends that will gain traction in the global trade management software market over the near future.
If you are considering going the automation route when it comes to handling the trading process, then you can always obtain an online loan to meet the global trade demand and keep up with advancements in technology.
Check Technavio’s Global Trade Management Software Market Report 2018-2022
Check Technavio’s Global Trade Management Software Market Report 2018-2022 for more market insights about the future of GTM software. This market research report provides the latest market size and market development for major market segments in terms of product types and regional market landscape. The report contains detailed market trends, market drivers, market challenges and key opportunities. In-depth market analysis such as Porter’s five force model, and comprehensive competitive landscape including detailed profiles of top companies are also included in the report.
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