Using Technology to Gain a
Competitive Advantage in Global Trade
By Thomas A. Cook

     United States importers and exporters can gain significant competitive advantages in global trade through the use of technology- Access to new markets, more cost effective sates efforts and less costly logistics are but a few of the immediate benefits

     While global technology as it relates to international trade is changing and growing every day, there are many options available to the large, medium, small and home-based import/export firm. Just hook up a PC, secure a modem and you are ready to go for less than $2,000 US Dollars (USD).

     If one takes a very serious and in-depth review of global technology, you could identify more than 30 very specific tools.

     Many software and service providers have come into vogue that provide extensive data on businesses overseas. Many of these resources are both government and commercial based. Via Electronic Data Interchange (EDI) or the Internet, one can log in and find an array of information on:

• market data on overseas opportunities;
• names and contact data on overseas companies;
• names and contact data on resources, support services and service providers;
• research profiles on products, services and demographics;
• specific product and prospect opportunities.

     Many of these data providers have just come into service, such as Trade Compass based in Washington, DC. Others, such as the Department of Commerce, AT&T, and Dun & Bradstreet, have been doing it for a long time but have greatly expanded their individual capabilities.

     More progressive companies have developed their own web pages to advertise the products and services they sell. This can be achieved by the smallest of companies for under $25 USD per month. Very extensive and more elaborate web sites can cost tens of thousands of dollars, and have electronic commerce capabilities-actually placing the order through the web site.

     E-mail affords cost effective, timely communication between sellers and buyers. It can replace the fax or enhance its utilization. It has "broadcast" capability which allows the user to form one message and send it out to a wide audience automatically at times when usage rates are the lowest, making for very cost effective communications. It allows marketing and sales pieces to be forwarded without the expense of overnight mail and express services.

     It allows more flexibility and "tailorability" to individual clients' needs, in different languages or with different presentation designs to allow for cultural, ethnic and religious nuances.

     Letters of credit, which are heavily utilized in global trade can now be transacted via automation, without the absolute need for all the historical paperwork.

     Wire transfers, sight drafts, and other means of documentary credit devices can now be accommodated via EDI. Many of the world's leading financial institutions have begun various initiatives independently and in conjunction with various banking service providers to establish:

• common EDI means of communication;
• secure methods of protecting confidential data;
• more timely paper-less transactions; and
• global links between foreign firms in an array of countries with local and international banks.

     Successful logistics providers now view their role as information/communication providers as well as companies that move freight.

     The integrated carrier, the freight forwarder, the customhouse broker, the ocean and air carriers, etc. who are making the investments in technology will be the only ones who will survive into the. 21st Century.

     The logistics industry is enhancing its use of technology as follows:

• developing defined EDI or Internet interfaces with its customers' import/export order entry systems;
• providing linkage into warehousing, inventory management and shipping functions;
• establishing systems for tracking of freight and to deal with customer service issues;
• becoming an integral partner with its clients as an information resource;
• having programs that ease the knowledge of, preparation of, and execution of international documentation; and
• affording access to government reporting requirements and export licensing matters.

     The integrated carriers such as Federal Express and United Postal Service along with your larger freight forwarders and air/ocean carriers have generally taken leadership positions offering various competitive products.

     Many logistics providers are expanding the array of services they are providing because technology has afforded options not previously available.