Tuesday, October 7, 2008

Global Trade Compliance - An IT Analysis - Part 3

Page 13 - 'GTC lags behind other GTM functions in the use of information technology: 64% of all companies in this study report having mostly manual trade compliance practices with disparate automation efforts for certain processes reported by many respondents'
No wonder TC business jobs outnumber TC IT jobs a hundred to 1 :).

Page 14 - 'Companies with automated processes for restricted party screening are 30% more likely to report zero government fines for non-compliance'
Finally restricted party screening is in the limelight!

26% of exporters and 14% of importers have automation in License Determination and Management. Does this mean that they have automated assignment of license exceptions and special licenses obtained from export regulatory authorities? There isn't info on the probability of reducing government fines from such automation.

'Due to the early stage adoption of GTC technology solutions compared to other supply chain applications, there is almost no definite lead in performance among companies using different solution types'
I think the author should have clarified in her opening statement that her analysis was specific to import compliance. On demand software for third party GTM solution providers may be as popular as ERP modules with best in class companies. It doesn't follow that they are equally scalable and provide as much data security. Consider this:
1) An ERP solution resides within a company's firewall where there is full security for a company's pricing and customer/supplier data
2) An ERP solution is specific to a company. So long as the foundation was laid well it can be scaled to the company's needs. On the other hand an on demand software provides services to many companies. It remains to be seen how it will scale to the growth needs of all companies.

I don't see a similar analysis by the author for export compliance.

This concludes my IT Analysis of the Aberdeen Report: Global Trade Compliance Priorities in 2008. It is available at:

Please note: Aberdeen did not provide me with a free copy of the report and I am not promoting it :).