Using Technology to Facilitate Trade Presented by Sue Welch Chief Executive Officer Cross. Street. Trade, Inc. 2 Main Street, Gloucester, MA 01930, USA
Building a Trade Platform that Unites n n Countries Associations Small and Medium Enterprises Global 2000 Organizations
Developing Countries n n n Are promoting traditional industries Are developing new industries to promote Seek to remove trade barriers through negotiation and trade agreements Seek to attract investment Need to modernize trade facilitation infrastructure
Associations n n n Promote a specific industry Are in business to add value for current members Want to expand membership Are exploring regional capacity building Have close relationships with government Are a key source of information and services to members
Small and Medium Enterprises (SME) n Are most concerned about legislative stability and obtaining market information n Trade barriers inhibit entry to global markets n Inexperience, lack of trade readiness n Finding and developing new partnerships is expensive and time consuming n Lack credibility in new markets n No standard supply chain infrastructure
Global 2000 Corporations (G 2000) n n n Tend to buy from who they know Paradoxically, seek new sources of goods and services Take 3 to 6 months to find and certify new suppliers Are competing against design-to-delivery cycles that have shrunk up to 90% Are implementing regional capacity programs Value information as highly as products and services
What is the Value of Information? n n The search and identification of qualified sources for goods and services absorbs about 53% of the entire sourcing cycle 80% of the cost of product is built in the design and development phase when sourcing occurs Automating these processes through the use of Internet based technology and emarkets can reduce cycles by an average of 30% Aberdeen Group
Technology is a Competitive Differentiator n n n The information created is a commodity that is as valuable as the goods and services being traded Trade partners are highly dependant upon each other for information that drives their organizations, reduces costs, speeds goods and services to market Failure to provide information, breaks down the processes and marginalizes
Technology Role for Governments n Provide an infrastructure that supports n Information n n n Timely, easily disseminated Consistent Complete Reflective of Actual Fees and Charges Readily Available and Easily Accessible Processes n n n Transparent Globally Normalized, Non-isolationist Speed goods, raw materials, and services to market
Create Bridges Over Trade Barriers n Begin, today, to build a standardized trade platform that provides the tools, content, business infrastructure and contacts to unite associations, companies and governments: n n n Establish a transparent payment process for Customs duties and fees Centralized, Internet accessible national database for trade information Inexpensive access to hardware and software for associations and SMEs On-line testing for exporters Centralized site for international document creation
Virtual Trade Center one step at a time TM Information Center Trade Analysis Maps, E-Learning Export Courses Standard Codes, HTS Schedules Trade Tools Center Trade Readiness Audit, Global Cost Calculator, International Trade Documentation Virtual Trade Center. TM Fulfillment Center Supply Chain Execution, Buy/Sell on line Trace & Track, Invoicing, Financing, Customs Community Center Registration, Virtual Trade Missions, Video Conferencing, On-line Showrooms, Partner Profiling, E-Links to Banks, Forwarders, Government
Who Can Benefit? n Governments Improve matchmaking with supplemental electronic Trade Mission n. Easily collect, standardize, disseminate, information n. Build a transparent trade process n. Ability to regionalize capacity to attract investment n n Associations Provide electronic showroom for offerings n. Provide web conference format to establish relationships before meetings n. Co-produce electronic trade missions to other countries or focused on specific corporations n. Provide standard supply chain infrastructure for members n. Assist members in becoming trade ready n n SME Standardized help to be trade ready n. Participate in virtual trade missions n. Electronic showrooms for products and offerings n. Access global supply chain infrastructure n. Find and qualify certified Buyers/Markets n. Easy access to global data n n G 2000 Create private trade missions n. Work with potential sources to ensure compliance with requirements n. Find new sources at a fraction of the traditional cost and time n. Can more easily find new markets n
Next Steps n Start small - select one process with high probability of success or easily implemented n Provide one resource on line - HTS n Connect one group to another, i. e. e-learning n n n Explore alternatives to high cost equipment get on line in the electronic economy Build on your success with another small, easy to implement, step Be competitive - share information
Thank you Cross. Street. Trade, Inc. 2 Main Street, Gloucester, MA 01930, USA info@crossstreettrade. com Phone - 1 -978 -281 -3723
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