Selecting the Right Global Trade Management (GTM) Solution for Microsoft Dynamics AX

In Managing the Global Supply Chain: The Role of Global Trade Management (GTM) Solutions we laid out the business case for software solutions that manage the various processes involved with import, export, global logistics, and trade agreements. Not currently offered as part of Microsoft Dynamics AX, these applications automate denied party screenings and embargo checks; assign export and import licenses; develop and file trade documents; and communicate electronically with customs authorities.

William McNeill, senior research analyst at Gartner in Stamford, Conn., says an increasing number of companies are taking an interest in GTMs and using either integrated or standalone offerings to ensure a smooth export and/or import process. "Because the brand owner/manufacturer is ultimately responsible when something goes wrong during the import or export process," says McNeill, "companies must put processes in place to handle and mitigate that risk."

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The Selection Process

Some firms choose to outsource global trade management to freight forwarders or third-party logistics firms, both of which generally have their own GTM solutions. Even so, McNeill says companies should avoid "operating in a vacuum" and strive to gain visibility - even if it's just to get quick status updates - over their global trade. "Even for the highly outsourced supply chain, we advocate the use of a GTM," says McNeill.

When shopping around for a GTM, McNeill advises Microsoft Dynamics AX users to look closely at the solutions' capabilities. The three primary categories are import, export, and restricted party screening (i.e., the parties involved ...