What just happened? The global trade landscape changed dramatically when the enervating U.S. Presidential election ended. While the results shocked many around the world, the potential shifts in trade policies under President-Elect Trump are obvious. Even in the first few days following his win, direct and unmistakable anti-trade sentiments have resounded from the incoming leader. The change in administration is sure to bring the dismantling of existing trade agreements, scrapping of pending agreements and a lack of focus on easing cross-border trade overall.
However, the industry is used to commotion and there are ways to brace your company for what is to come. During the past 11 months, supply chains have been riddled with disruptions at every turn. In January 2016, analysts predicted positive trends and a big trade uptick, but fate didn’t get the memo. The forecasts fell short, not for lack of effort but mainly because global trade was hit with numerous interruptions, driving importers and exporters scrambling to stay on course.
Preuninger Says... |
 |
| As we move into 2017, global trade management executives need to brace against disrupters that have the potential to send your supply chain into a tailspin. |
 |
What do you say? |
 |
| Click here to send us your comments |
|
|
|
We rang in the New Year looking ahead to the implementation of numerous import, export and tariff agreements; the Information Technology Agreement (ITA), Automated Commercial Environment (ACE) and IMMEX (Maquiladora) Program were expected to alter the way business was conducted. But we soon saw repeated delays as government officials realized the Goliath effort it takes to roll-out new technology platforms across multiple agencies. By February, worldwide air and ocean cargo shipments were showing signs of decline which continued to fall all year. Spring approached with increasing military, geo-political and labor unrest, along with the continued refugee crisis in Europe. Britain’s June vote to exit the EU started the global tide of protectionism which permeated the U.S. presidential election and is leading to what is now termed “de-globalization”. Cargo theft figures are reaching the multimillion-dollar mark and weather has hampered shipments; leading us to the Hanjin line bankruptcy headache that stalled shipments in a quagmire of legalese, and the further consolidation of ocean carriers caused by troubling business woes. As the industry whirled to stay ahead of all this, retailers closed hundreds of brick-and-mortar locations (or closed for good) to focus on the overwhelming sales over the web instead.
But business keeps on going and despair sometimes leads to opportunity. The industry must address the same imperatives — speed, quality, cost, risk and agility — yet doing it alone isn’t an option. Like when a hurricane is approaching landfall, buttressing for the hit will ensure your company makes it through this storm. The key is investing in technology and making process changes in advance. These main features are a requirement for leaders:
- Supply chain visibility is critical to proactively manage unexpected supply chain disruptions
- Agility to respond to the ebb and flow of consumer demands
- Retailers, especially, need to enable cross-border e-commerce due to booming growth
- Access to comprehensive and timely trade regulatory information and updates
- Move beyond simple visibility to supply chain predictability
- Manage secure trading partner collaboration
- Enhance supply chain risk analysis and management
- Gain deeper insight with big data and analytics
- Manage costs to maintain margins
As we move into 2017, global trade management executives need to brace against disrupters that have the potential to send your supply chain into a tailspin. Fewer and fewer companies are managing global trade purely by spreadsheet; research shows a majority of manufacturers and retailers have automated their supply chains, so it seems the message has been getting through. I recommend you batten down the hatches now and get ready for a bumpy ride.
Download Aberdeen Group’s latest analyst report entitled, Supply Chain Visibility: Know Sooner, Act Now, to learn how important visibility in the supply chain is to combat disruptions.
Any reaction to this Expert Insight column? Send below.
Your Comments/Feedback
|
