Global trade management at any given point of time, be it in the past, present or the future has to deal with the complexities of multiple languages, time zones, currencies, taxes, and modes of transport. There are several laws governing global trade, and these are highly complex and ever-changing. So how do organizations manage complexities and what would help?

Current scenario

Organizations must review and act on a heavy volume of regulatory information, which is often published on paper in varying formats and maintained in spreadsheets in organizations. All the complexity in global trade management drives a lot of risk. While these companies want to make the most profitable trades, they must balance counterparty and credit risk. Visibility into the entire trading value chain provides the key to making smarter, more profitable decisions. Raw materials and commodity businesses need accuracy at several levels.

Flow of Information

Companies need a complete view of budgeted and actual trade-related P&L across contracts, shipments, invoices, and payments. They need to ensure documents are accurate and comply with business agreements and have a clear appraisal of all order edits, shipment changes and related documentation.

Flow of goods

Companies need to track shipment and order related activities, manage all information related to the movement of the physical goods, and implement credit checks of all counterparties during contract negotiations, shipment, and invoicing.

Flow of cash

Good cash flow management is essential to profitable trading. Companies must diligently record the flow of letters of credit from creation to final presentment and record and track loans. They must manage resolution flows among multiple trading partners.

Comprehensive and modern solution

Traditionally, global trading organizations spend most of their time and resources manually screening shipments and updating them. The solution should ensure that the process is automated, enabling organizations to screen their shipments more often, more efficiently, and more accurately, ensuring the actual shipment status is reported to the required parties.

In addition, companies should be able to track and trace shipments from origin to destination and boost operational efficiencies. They are aware of delays and deviations and can overcome shipment delays. By comparing costs and charges, companies can determine the best voyage strategies.

These challenges are difficult to master without a comprehensive solution that is simple but has the capability to manage numerous complex global trade activities and is designed to save time and effort, enabling companies to focus on core work. A modern solution that would streamline the entire lifecycle of the supply chain – automating manual processes would help reduce the cost, time, and risks in quantifiable and auditable ways.

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Eka Software Solutions is a global leader in providing digital commodity and risk management solutions, driven by cloud, blockchain, machine learning and analytics.

To talk to Eka experts on trade and logistics solutions write to us on info@eka1.com or register for a free trial.