3PL Role in GTM
The challenges cited in Figure 17, along with
the large number of shippers not currently
leveraging GTM tools to manage all of the
complex data within supply chain decision
making, represent an opportunity for 3PLs.
A third party is well-positioned to manage
the complexity and flow of information across
players within a supply chain; and in doing so
may be able to create more strategic relationships
with all parties involved. Some 3PLs are wellequipped to facilitate global visibility and
provide compliance management to support
accurate documentation management, just two
of the ways they can support shippers facing
these challenges in Figure 17.
The Evolution of GTM
It’s difficult to overstate the importance of
getting it all right when making strategic
decisions about where to locate sourcing and
distribution/sales infrastructure. As more
countries and regions forge Preferential
Trade Agreements, complex tariff and duty
structures, and more developed logistical
options, understanding and capturing this
information effectively becomes a potentially
costly or profitable way of doing business in
affected countries.
Reverse logistics is a case in point. In some
locations, such as Brazil, tariffs are structured
in such a way that, once goods enter the
country, it’s cost-prohibitive to get them back
out. Redistribution of misallocated goods is not
an option, so liquidating inventory sometimes
becomes the only course of action. Such
conditions elevate risk, and must be accounted
for in strategic network planning.
The increasing complexity of global
trade dictates that shippers take a more
comprehensive approach to sourcing and
distribution decisions. The rapid expansion in
the number of preferential trade agreements
is adding further fuel to the fire. The good
news is that there is considerable opportunity
for both shippers and 3PLs to leverage global
trade management tools and services to take
all factors into account as they make strategic
choices about where to extend their networks.
Pr e fer ential S our cing: The
Takeaways
• Significant increases in the volume of
cross-border world trade have many
companies revisiting sourcing and
distribution decisions. But these complex
decisions require accounting for multiple
factors, including consumerism, lead-time
constraints, risk management/continuity
planning and portfolio differentiation. Yet
another factor is proliferation of preferential
trade agreements (PTAs), which now number
almost 300.
• Most shippers take a basic approach to
managing all this global trade activity,
focusing on the physical movement of goods
and viewing production and distribution
as fixed variables. A more advanced
approach considers a more complete set