New Research Supports Need for Technology in Globalization 3.0 Era
Benchmark study shows companies underinvest in global sourcing and trade software
EAST RUTHERFORD, NJ, December 18, 2015 -- Supply Chain Digest, the industry's premier supply chain management and logistics publication, released a benchmark report based on the results of a recent industry survey on global sourcing and trade management practices, processes and technologies. Sponsored by global trade management (GTM) solutions provider Amber Road (NYSE: AMBR), the majority (68 percent) of respondents felt they had underinvested in technology necessary to meet the challenges of modern supply chains.
The survey of 200 supply chain and sourcing professionals from a wide range of companies provides a number of interesting insights into global sourcing practices and technology as well as broader GTM issues. Most notably, the research uncovered that challenges faced by supply chain executives today are driving the dawn of a new era of globalization, known as "Globalization 3.0." Companies that excel in global execution - strategies, processes, agility and visibility - have a substantial competitive advantage over rivals.
"The data shows that companies are in the midst of a transition. Not long ago, a relatively few number of companies were leaders in global sourcing and GTM process and technology while most companies were laggards in such capabilities," said Dan Gilmore, president and editor in chief, Supply Chain Digest. "Today, there are significant opportunities for many companies to integrate supply chain and related functions at a much deeper level that have previously operated somewhat autonomously."
Survey respondents believe the top three GTM investment opportunities today include: reducing total landed costs, improving supply chain agility and responsiveness, and decreasing lead time variability. The study also found that global sourcing decisions are made based on three main factors - product quality, consistency of performance, and unit price - thus, underscoring the importance of delivering the right product, at the right price, at the right time.
"We have seen dramatic shifts in sourcing over the years, including new global suppliers and changing regulations," said Gary Barraco, director of global product marketing at Amber Road. "To address these changes, best-in-class companies are moving beyond the traditional competencies in import and export compliance into areas such as supply chain visibility, global transportation management, and advanced sourcing capabilities. To that end, Amber Road has built an end-to-end GTM platform that marries these capabilities enabling customers to manage the demands of this new era of Globalization 3.0."
Watch the on-demand video-cast on the survey results:
Download a complimentary copy of the full report, 2016 Global Sourcing & Trade Management Benchmark Report:
About Supply Chain Digest
Supply Chain Digest is the industry's premier interactive knowledge source, providing timely, relevant, in-context information. Reaching tens of thousands of supply chain and logistics decision-makers each week, our flagship publications - Supply Chain Digest and SCDigest On-Target - and web site (www.scdigest.com) deliver news, opinions and information to help end users improve supply chain processes and find technology solutions.
About Amber Road
Amber Road's (NYSE: AMBR) mission is to improve the way companies manage their international supply chains and conduct global trade. As a leading provider of cloud based global trade management (GTM) solutions, we automate the global supply chain across sourcing, logistics, cross-border trade, and regulatory compliance activities to dramatically improve operating efficiencies and financial performance. This includes collaborating with suppliers on development, sourcing and quality assurance; executing import and export compliance checks and generating international shipping documentation; booking international carriers and tracking goods as they move around the world; and minimizing the associated duties through preferential trade agreements and foreign trade zones. Our solution combines enterprise-class software, trade content sourced from government agencies and transportation providers in 145 countries, and a global supply chain network connecting our customers with their trading partners, including suppliers, testing/auditing firms, freight forwarders, customs brokers and transportation carriers. We deliver our GTM solution using a Software-as-a-Service (SaaS) model and leverage a highly flexible technology framework to quickly and efficiently meet our customers' unique requirements around the world.