As we noted in our last article, adhering to the rules and regulations of global trade has become an increasingly tricky endeavor as the international landscape continues to shift. To deal with that, many companies are turning to global trade management (GTM) software to help.
What is global trade management software?
According to consulting firm Gartner, global trade management software “supports the complex and unique compliance, regulatory and financial aspects of the import and export processes associated with international trade.”
The firm notes that GTM software applications can also provide support such as “a B2B network, trade content services and the ability to directly file customs documents.” In international trade, Gartner says uses of GTM solutions may include:
- Managing “the execution of transportation operations”
- Ensuring “compliance during the operation”
- Supporting “the financial aspect of the operation”
“While GTM solutions are mostly related to the compliance and regulatory aspects of international trade, the operational and financial capabilities of these solutions still remain relevant,” the firm explains.
ARC Advisory Group defines global trade compliance (GTC) solutions as those which “automate and streamline processes related to customs and other government authorities responsible for regulation and taxation of cross-border trade.”
The firm adds that GTC solutions also help companies make decisions related to how customs and compliance affect business operations.
Reports reveal growing role of trade compliance technology
ARC Advisory Group issued one of two recent reports that confirm the growing role of trade compliance technology.
Global Trade Compliance Systems Market Research
Recently released research by ARC indicates steady growth for the GTC market, which is expected to continue over the next five years.
In a statement, Gaven Simon, Analyst and key author of ARC’s Global Trade Compliance Systems Market Research, explained some of the factors affecting this trend.
“As free trade diminishes, the demand for global trade compliance solutions will grow,” Simon said. “Companies usually prefer integrated solutions over having to piece together different solutions to solve trade compliance problems. Potential customers prefer buying one solution rather than having to purchase multiple country-specific compliance solutions.”
He also underscored the value of taking a comprehensive and centralized organizational approach.
“A corporate-wide approach to GTC problems allows this process to be managed centrally but still allows regional requirements to be supported,” Simon explained. “Centralization improves global compliance adherence and can support labor efficiencies.”
Another factor that remains a priority? Sustainability.
“ARC is also seeing more organizations that are starting to weave concepts of sustainability into some of their compliance programs,” Simon said. “Companies are moving to a broader view of compliance as being part of a function that supports broader risk, image, and reputational considerations.”
The research also identified key market trends that include:
- “Forced labor regulations driving demand for GTC solutions”
- “AI and machine learning ease trade classification”
- “Trade conflict drives the need for GTC”
- “GTC supports efficient sourcing”
2024 Thomson Reuters Global Trade Report
In addition to other findings, a recent report from Thomson Reuters Tax & Accounting also confirms the increasingly important role of trade technology.
According to an article on the firm’s website, “The 2024 Thomson Reuters Global Trade report highlights key challenges businesses face, including supply chain issues and talent shortages, and notes that while technology offers solutions, it also adds complexity, requiring investment in talent and data.”
Survey participants included “upper-level trade professionals” in North America, the European Union, the United Kingdom, Latin America, and Asia Pacific. Findings indicated that “complexity” and “disruption” are expected themes for global trade and supply chain management in 2025.
The article describes a recent webcast in which Andrew Moxon, Senior Product Marketing Manager at Thomson Reuters, and Marianne Rowden, CEO and Director at E-Merchants Trade Council (EMTC), discussed “how these themes are playing out in real-world business and what companies can do to combat them.”
In addition to other factors influencing how companies can more effectively manage their involvement in global trade, Thomson Reuters says there’s a need for more investment in “automation and emerging technological solutions” to help organizations deal with complex issues and remain compliant with international trade regulations.
Although described as one of the complex issues companies face, Thomson Reuters says using the right technology can also help them deal more effectively with the other complexities involved.
“The sheer number of regulations and mountains of data means the days of relying on manual tools are long gone,” the firm explains.
In the webcast, Moxon concurred: “… We’re seeing a rise in interest in emerging technologies and an increased focus on automation to meet those challenges.”
Technologies described to help get the job done include machine learning, artificial intelligence, and blockchain — which support “visibility and efficiencies that bridge a staffing shortage and that effectively manage the supply chain,” according to the article.
“I’m always floored by the trade professionals who say, ‘I still use spreadsheets,’ or ‘I have to download data from one system and then analyze it, and then upload it to another system,’” Rowden said. “AI can pull that data together efficiently and turn it into actionable information.”
While effective technology can offer many solutions, Thomson Reuters also notes that “…technologies that solve complex problems are themselves complex.”
As a result, the firm says many companies look to outside support to meet various needs — especially when labor shortages are an issue.
To hear more from Moxon and Rowden, listen to the webcast.
The automation of global trade
In an article published in the February 2025 Issue of Logistics Management, Bridget McCrea, Editor at Large for Modern Materials Handling and a Contributing Editor for Logistics Management, also discusses the growing role of technology in global trade.
“Amid shifting trade requirements, evolving tariffs, and the threat of trade wars, shippers are leaning on global trade management (GTM) solutions to automate compliance and navigate an increasingly unpredictable business landscape and vendors are responding to their needs,” McCrea writes.
She explains that GTM offers “end-to-end visibility” and “control” over processes related to international trade with capabilities that include:
- Import and export compliance
- Customs management
- Trade finance
- Logistics
McCrea adds that such capabilities help organizations “navigate trade requirement complexity, comply with international regulations, minimize risk, save money (on fines and duties), and optimize their global supply chains.”
In the article, she cites several industry experts about GTM trends — including ARC’s Simon, who predicts GTC will be a “very robust space” over the next few years.
“This software sector was already growing, but now I think it’s going to grow at an even faster pace,” Simon reportedly said, noting that unpredictable trade dynamics make forecasting what’s next a bit tricky. “I’d say 2025 will provide a better idea of what’s going to happen for the next three years, just based on what actually comes to fruition and the actual regulatory changes.”For more about current trends in GTM technologies, please see McCrea’s in-depth article.
