With tariffs and the threat of trade wars looming, global commerce has never been more uncertain. Moreover, the pace of change will only accelerate with unrelenting pressure to develop agile and responsive supply chains to support domestic and global e-commerce.
E-commerce expansion is on track to continue transforming the way companies do business. Online sales will reach 12.8 percent of global retail sales by 2019 according to eMarketer, and global cross-border B2C e-commerce sales are expected to top $1 trillion in 2020, according to research from Accenture.
In a 2017 PwC survey of global retailers, the digitization sales channels, or the extent to which sales have moved online, increased by 27 percent since 2015.
However, growing global commerce presents challenges to delivering a positive experience while overcoming rising shipping costs, service and visibility challenges, and increased enforcement of import/export regulations and product restrictions.
For the shippers, top concerns include regulatory risk based on trade violations, fines or delays due to lack of documentation; and operational risks such as staffing, security, product safety and quality issues; and supplier management, reflecting the fundamental value in that critical aspect of the supply chain. Cybersecurity closely follows these other perils to reflect these tumultuous times.
Companies with a burgeoning global trade component as a consequence of e-commerce expansion should consider partnering with an enterprise logistics provider experienced in global trade regulations and practices. The foundation for a successful global trade strategy begins with a disciplined operation based on core enterprise solutions built around a robust technology platform.
Transportation Insight’s deep domain expertise in the global trade services arena provides a proven second set of expert eyes to meet the U.S. Customs and Border Protection’s Reasonable Care standard in your compliance management process. A thorough assessment of your international trade compliance could also lead to deeper Enterprise Logistics Solutions that mitigate financial risk, slash non-value-added costs and transform your supply chain into a competitive advantage.