Making international trade simpler

International trade: nothing new under the sun

International trade is nothing new. Even in ancient times we were transporting goods over long distances and had complex trading relationships. For example:

• The lapis lazuli used in Tutankhamun’s death mask came from the mines of Badakshan in modern Afghanistan and his breast ornament contains large amber beads from the Baltic;
  
• Ancient Rome had a flourishing trade with southern India and established many trading ports along its coast;
  
• The Silk Road between Asia and Europe was used for over 1,500 years bringing East-West trade in a huge variety of goods including silver, ivory, gems, porcelain, jade, bronze, fur, and, of course, silk.
  

Growth in world trade

Today, a significant and growing proportion of global gross domestic product (GDP) results from international trade. According to WTO figures, world merchandise exports grew from US$ 5.1 billion in 1995 to US$ 19 billion in 2014 despite various financial crises over recent years including the one in 2008 that triggered the major global economic downturn.

Even with these financial crises, sluggish economic growth, and continued political turmoil, the share of world trade in GDP is much higher today than it was 20 years ago – at roughly 30% in value terms.

Globalization is a dominant business environment. Companies source goods from all around the world and ship to a global marketplace. Trading networks are much more complex than ever before with nearly half of world trade in goods and services taking place within global value chains. Trading internationally, therefore, has become the norm rather than the exception.

International trade challenges

Such levels of interdependency along with the pace of change and a myriad of rules and regulations present increasingly complex challenges for companies engaged in international trade.

Dealing with regulations and local government agencies in a range of different countries, working with other companies across borders, and ensuring good management visibility across disparate organizations are just some of these challenges businesses face.

Given the complexity of trading networks these days, companies very much need to see all their international business transactions in one place, automate their supply chain processes, and secure their global trade.

Benefits of good solutions

Good software solutions can certainly help with these issues. Key benefits include:

• Significant return on investment through reduced costs
  
• Increased automation
  
• Greater visibility and control of processes
  
• Compliance with continuously changing legal requirements
  

And, importantly, software can help to make things simpler. Which is great news in such a complex international trading environment. AEB has been providing supply chain software for over 30 years and is trusted by international companies to support their global business needs. Our flexible solutions work throughout all areas of the supply chain, across regions, and beyond borders providing global control with a local focus. With over 5,000 customers, a global user base, and multi-country solutions, AEB truly is an international company able to support companies with international operations.

AEB is dedicated to simplifying international business

Many case studies testify to the value that international companies derive from AEB’s powerful logistics and global trade solutions throughout the international supply chain.

• Infineon, for example, uses AEB’s software to manage the global distribution of high-tech microchips from fourteen sites.
• EPCOS has optimized its transport management for a global network of 23 shipping centers.
• And BD uses a fully outsourced freight audit solution from AEB to optimize its freight costs.

To learn more about the benefits that AEB’s solutions can bring to international companies, just browse our product portfolio or visit our media center. 

We may not be able to turn the clock back to ancient times when merchants crossed the central Asian steppes laden with silk, but the challenges raised by our modern and complex international trading networks aren’t insurmountable. International trade can be made simpler. Sometimes a small investment in this area can make a huge difference.

If you have any comments or remarks, I’d be happy to exchange with you via LinkedIn.