- The proliferation of free trade agreements. Today, more than 300 trade programs exist around the world, and more are being developed. The U.S.-Australia Free Trade Agreement went into effect in January of this year, while the new Mexico-Japan trade program is expected to take effect in April. Some companies are still struggling to maximize fully older programs like NAFTA and are unable to keep up with the growing number of programs being enacted.
- Bandwidth. In many cases, the logistics or global trade departments at companies are too stretched to handle the complexity and detail associated with participation in numerous free trade programs. The infrastructure and support to leverage these programs simply does not exist.
- Lack of in-house expertise. Global trade management is a niche market that requires experts with deep knowledge. Many companies do not have the in-house experience required to manage such programs effectively.
Additional Articles of Interest
Imminent terrorist attacks or no, your competitive advantage demands that you secure your company's supply chain. Read more in "Supply Chain Security: Is Your Company Complacent or Engaged?," in the August/September 2004 issue of
For a look at how Tyco Fire & Security is tackling trade compliance issues in its global supply chain, see "Turning Global Trade Compliance Into a Competitive Advantage," in the August/September 2004 issue of Supply & Demand Chain Executive.
For more information on the challenges and opportunities presented by increasingly global supply chains, see the special in-depth report in the August/September 2004 issue of , which includes the following articles:
- Making Global Supply Chains Work Supply and demand chain practitioners take on the challenges and opportunities of world marketplace.
- The Hidden Costs of a Global Supply & Demand Chain - Veteran industry observers warn of potential hidden costs of offshoring.
- Mastering the Complexity Challenge in the Global Supply Chain - While many companies are acting globally, they are still thinking locally.
- Ensuring Security of Supply in the Lean Supply Chain - Balancing the demands of security with the requirements of today's lean supply chains
- The World Is Enough - Making the global high-tech supply chain more accessible.
- More articles about Vastera.