The rise of digital trading solutions is an indication of where global trade is headed. Not only is trade automation reshaping global commerce in the present but it's setting the future standard for international trade worldwide. The question is, just how big a role will technology play in global trade of the future?
This article explores the big question and gets up close and personal with the transformative impact that digital trading is having on global trade. Plus - whether you're a supply chain manager or business leader - there are actionable insights and strategies to make digital trading solutions work for you.
From the way you manage global trade to enhancing supply chain visibility and optimizing container tracking, trade automation is changing the way things have been traditionally done for the better.
What is Digital Trade in Logistics and its Cutting-Edge Solutions?
If you're unfamiliar with digital trade in logistics, it simply means using digital technologies to help streamline and optimize your domestic and global logistics processes. By switching from traditional to digital solutions, businesses can cut costs, enhance supply chain resilience, and improve overall efficiency.
Digital trade solutions feature all types of different technologies collectively functioning together to change the way the logistics sector operates. Automation, artificial intelligence, e-commerce platforms and advanced data analytics are just some of the technologies that go into developing digital trade solutions.
Digital Platforms and E-Commerce
Digital platforms and e-commerce have opened new markets and global trade opportunities, especially for small and medium-sized enterprises (SMEs). Where traditional solutions left smaller operations stuck in a rut, these platforms give SMEs the tools they need to expand their global reach and improve operational efficiency.
The global e-commerce market is expected to hit $4.2 trillion by the end of 2024, with further growth estimated in the next few years. This level of growth shows that borderless e-commerce is becoming a hugely profitable option for businesses, aided by digital platforms' impact on international trade.
E-commerce platforms are giving businesses a global connection point with customers, offering easy transaction processes combined with efficient logistics management.
For example, Amazon and Alibaba have changed the game for global trade by providing fast-functioning digital marketplaces that make cross-border transactions easy.
Such platforms not only enhance market access but they provide integrated logistics solutions, making it easier for businesses to manage international shipments.
Automation and Efficiency in Trade Processes
If there's one area where trade automation has proven to be a godsend, it's the way it has revolutionized procedures and processes. Nobody likes the paperwork that comes with international trade. Even less so when paperwork is incomplete, plain wrong, or goes missing.
Automation is reducing reliance on manual processes, minimizing errors and speeding up once tedious procedures and processes. Specifically, customs agencies are driving the shift towards digitalization to enhance global trade. Why? To streamline customs clearance, invoicing, and compliance processes.
Technologies like Robotic Process Automation (RPA) and Artificial Intelligence (AI) are increasingly being integrated into global trade processes and procedures. RPA can automate repetitive tasks like data entry and document verification, while AI-powered systems can predict demand and optimize inventory management.
By using these technologies, businesses can expedite trade processes, reduce costs, and improve the efficiency of global trade management.
Enhancing Supply Chain Visibility and Container Tracking
Beyond improving wider global trade operations, digital solutions are helping to unlock individual functions across supply chains.
Take supply chain visibility and container tracking for example, which are equally important to a smooth-running global trade system. Imagine having eyes and ears across every supply chain touchpoint and container in transit. This equips you to respond to disruptions, optimize operations, and improve customer satisfaction.
Digital technology is helping to make this happen, unlocking new levels of supply chain visibility and container tracking across sea, road, and rail.
Technologies Enhancing Visibility
Technologies like the Internet of Things (IoT) and real-time data analytics have proven to be instrumental in unlocking new levels of supply chain visibility. IoT devices, such as sensors and RFID tags, provide real-time data on the location and condition of goods in transit, providing container insights like never before.
Equally, real-time data analytics empower businesses to process and analyze vast amounts of data, providing insights into supply chain performance and potential bottlenecks.
For instance, advanced analytics can predict delivery times, monitor inventory levels, and identify areas for improvement. By using these technologies, businesses can gain a comprehensive view of their supply chains, leading to more informed decision-making and increased operational efficiency.
According to Gartner, by the end of 2024 over 30% of supply chain decisions will be made using AI and IoT data.
Innovations in Container Tracking
Container tracking technology has come a long way in a short space of time but the impact of container tracking has been profound. Not only do container tracking solutions reduce transportation costs, they improve wider logistics systems.
For example, solutions like GPS tracking and blockchain provide real-time visibility into container movements, offering the secure and efficient transportation of goods.
Blockchain technology, on the other hand, offers a secure and transparent way to track shipments, protecting data integrity and reducing the likelihood of fraud.
These innovations not only enhance the efficiency of container tracking but contribute to overall supply chain resilience.
Such is the demand for real-time visibility and container tracking that according to a report issued by KBV Research, the global container tracking market is expected to reach $19.1 billion by 2031, rising at a market growth of 7.9% CAGR during the forecast period.
Streamlining Global Trade Management
Global trade management is a big task, and traditional ways of doing it just don't cut it anymore. Trying to coordinate and optimize the movement of goods across international borders, without digital support, is asking for trouble.
Digital trade solutions make global trade management easier by simplifying compliance, documentation, and transaction processes.
Digital Documentation and Compliance
Digital documentation systems help to simplify compliance with international trade regulations. Traditional paper-based documentation is prone to errors and delays, whereas digital systems offer accuracy and efficiency.
Electronic documents, such as e-bills of lading and digital customs forms, reduce the time and cost associated with processing trade documents. These systems ensure compliance with international standards and regulations, minimizing the risk of fines and penalties.
Smart Contracts in Global Trade
Smart contracts, based on blockchain technology, are changing the way global trade transactions happen by automating transaction processes across borders. These self-executing contracts automatically enforce the terms and conditions agreed upon by the parties involved.
This enhances the speed and security of trade operations by eliminating the need for intermediaries and reducing the risk of disputes. For example, a smart contract can automatically release payment once the goods are delivered and verified, guaranteeing a smooth and efficient transaction process.
Actionable Insights for Leveraging Digital Solutions
Global trade is competitive and the competition only stands to get even more fierce in the years ahead. Early adopters of digital trade solutions are reaping the benefits of a digital infrastructure because they're prepared for tomorrow's global trade challenges, today.
The reality is that global trade is going digital, which means the integration of digital trade solutions is not only key to future success, it's key to survival. With this in mind, the following strategies give you actionable insights for integrating digital solutions into your existing global trade systems:
- Invest in Comprehensive Digital Solutions: Platforms like Vizion offer advanced shipment tracking and supply chain management capabilities, providing businesses with real-time visibility and control over their operations.
- Use Advanced Analytics: Advanced analytics can help businesses gain insights into market trends, demand patterns, and operational efficiencies, enabling more informed decision-making.
- Implement Digital Documentation Systems: Integrating digital documentation systems streamlines compliance with international trade regulations, reduces operational risks, and improves overall efficiency.
- Deploy IoT Solutions: IoT devices offer real-time monitoring and management of goods in transit, enhancing supply chain visibility and reducing the risk of disruptions.
- Encourage Ongoing Technological Adaptation: Businesses should continuously explore and introduce new technologies to stay ahead in the global market. This increases business agility and responsiveness to the unpredictable nature of global trade.
Go Big on Global Trade with Vizion
Vizion's TradeView SaaS platform, in collaboration with Dun & Bradstreet, provides live monitoring of over $7.5 trillion in goods powered by 130+ data sources covering over 60% of container shipments from origin. The platform enables customers to evaluate performance, risk, and shipment history for 500M suppliers and logistics providers.
TradeView gives customers the ability to identify up-to-date regulatory compliance and ESG concerns within value chains of products and companies, monitor the live flow of any company’s shipments 30–90 days before arrival at destination, and analyze trends across 10 years of historical supplier, product, and transportation data.
In a volatile period for global logistics, TradeView aims to provide users with a real-time source of visibility, resilience, and disruption monitoring. On this foundation, shippers can build the operational resilience required to succeed in an increasingly dynamic transportation landscape. Try TradeView.
