Communications and transportation networks improved so dramatically over the last few decades, that even faraway regions and nations around the globe are now within the reach of a mere Internet connection. As a result, companies have jumped into international markets and outsourced their manufacturing and procurement operations to cheaper overseas manufacturers and suppliers, while some have established subsidiaries around the world. The Internet-based e-business promises to further shrink the world into a “global village” as people research, source, and procure products globally via the ubiquitous Web, buy and sell these via various e-commerce sites, storefronts, and marketplaces, and manage international supply chains with collaborative software and trading exchanges.
However, this kind of e-business has yet to surmount the challenge of global trade compliance and the diverse needs of international customers and trading partners. Simply put, many supply chain management (SCM), let alone enterprise resource planning (ERP) vendors lack strong international trade logistics (ITL) and global trade management (GTM) capabilities. Namely, while technology may be rendering a world that appears a lot smaller, the very same real-life world has become a lot more complicated in the process, as many barriers exist to conducting international business over the Internet and most businesses are not yet prepared for that.
Author: P.J. Jakovljevic
Source: TechnologyEvaluation.com
Subjects: International, IT / Technology / E-Business
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