Let’s talk about an industry that never stops, is always evolving. The changes in foreign trade are dynamic and its dynamism is influenced by various sectors.
In summary, we are talking from advances in technology, changes in legislation and trade policies of countries, to digital transformations of the most varied. In the past, it was the introduction of the steamboat, today it is the blockchain, for example.
In this article we will address, therefore, the main changes that have occurred in foreign trade in recent years. Plus, we’ll peek into what we can expect for the year 2023 and beyond.
If you stay with us until the end, you will see that these transformations are changing the face of foreign trade, certainly enabling new opportunities for exporters, importers, companies and professionals in the sector.
What are the main changes in foreign trade in recent years?
Turning our gaze to the beginning of the century, we can cite some changes that transformed foreign trade into what it is today. Let’s see next.
Intensification of globalisation
In cold analysis, we could say that the Romans, Phoenicians and Chinese already practiced globalization in their times. It could be, but that’s why we were careful to explain that globalization has greatly intensified and brought with it an expansion of trade flows between countries, driven by the reduction of trade barriers and technological advances.
The growing interconnectivity between nations has resulted in an increase in the volume of foreign trade and the diversification of supply chains.
Changes in trade policies
Over the years, we have witnessed a number of changes in trade policies adopted by different countries. The negotiation of free trade agreements, such as the United States-Mexico-Canada Agreement (USMCA) and the European Union Free Trade Agreement (EU-MERCOSUR), impacted trade relations between nations and thus promoted the reduction of tariffs and trade facilitation.
Ecommerce Growth
The advancement of technology and the popularization of the internet have driven the growth of e-commerce, which has provided new opportunities for companies to expand their operations across borders.
E-commerce has certainly facilitated access to international markets, allowing small and medium-sized businesses to actively participate in foreign trade.
What does digital transformation mean in Foreign Trade?
Digital transformation in foreign trade involves the adoption of digital technologies and processes to improve the efficiency, agility and security of business operations.
Next, we will cover some of the main areas in which digital transformation has impacted changes in foreign trade:
Scanning of processes and documents
The digitalization of processes and documents, certainly, is a fundamental element of the digital transformation in foreign trade. By replacing manual processes with electronic systems, it is possible to reduce bureaucracy and streamline the flow of information and documents necessary to carry out foreign trade operations.
The massive use of electronic signatures and digital certificates, which are becoming increasingly common, contributes to the security and authenticity of transactions. This eliminates the need for physical documents and enables the exchange of information more efficiently between the parties involved.
Digitization takes our document storage systems to the next level, as it allows for more organized and easily accessible archiving, facilitating audits and future consultations.
All this brings benefits such as reducing errors, increasing productivity and eliminating rework.
By automating tasks that were previously performed manually, companies can direct their efforts to more strategic activities, streamlining the entire foreign trade process.
In addition, the digitization of processes and documents contributes to the transparency and traceability of operations.
The use of electronic systems makes it possible to track the status of transactions in real time, ensuring greater visibility and control over business activities.
Supply Chain Automation
Supply chain automation is another area where digital transformation has played a key role in foreign trade. With the use of technologies such as the Internet of Things (IoT) and the integration of systems via API (Application Programming Interface), it is possible to automate different stages of the supply chain, from production to the final delivery of the product.
This automation ended up providing us with something we did not have until then: a more complete management and with greater visibility of the entire chain. Since inventory controls, scheduling smarter transportation routes, an idea closer to reality regarding demand forecasts and product monitoring have become reality.
This allows companies to make smarter decisions, thus avoiding the logistical bottlenecks of yesteryear.
Intelligent Logistics Management Systems
Smart logistics management systems are one of the changes in foreign trade that have played a crucial role in the digital transformation of international trade.
These solutions integrate several functionalities in a single platform and, in this way, allow a more efficient and integrated management of logistics operations.
These systems offer features such as cargo monitoring, real-time tracking, inventory management, demand forecasting, freight quoting, and integration with trading partners. With the use of these tools, companies have greater visibility into operations, making it easier to make strategic decisions.
In addition, these systems utilize advanced technologies such as Artificial Intelligence (AI) and machine learning, or “Machine Learning,” to analyze large volumes of data and provide valuable insights. Based on this information, companies can identify patterns, detect trends, and make adjustments in real time, maximizing operational efficiency and customer satisfaction.
Get to know the technologies used in the changes of Foreign Trade
The digital transformation in foreign trade has been driven by the emergence and adoption of several innovative technologies. Below, we highlight some of them:
SaaS Logistics Solutions
Logistics solutions based on Software as a Service (SaaS) have stood out as an efficient and affordable alternative for companies of all sizes. These solutions offer features such as inventory management, freight quotation, merchandise tracking and integration with trading partners, all available online, as well as simplifying and streamlining logistics operations.
Blockchain
Blockchain has been prominent in foreign trade due to its transparency, security and traceability. Its function as a shared digital ledger allows the immutable registration of all stages of an operation, from the issuance of documents to payment, mitigating fraud and streamlining customs clearance.
Characterized by decentralization, blockchain does not depend on a central authority. The transactions are validated by the network participants themselves, thus ensuring their integrity and security through cryptographic algorithms.
In foreign trade, blockchain is significant. All steps, from the issuance of the invoice to the release of the cargo, are recorded. This provides reliable and fast access to information by the parties involved. In addition, it offers complete traceability of goods, from origin to destination, essential for products with specific regulations.
The blockchain tool simplifies the verification of documents and transactions, reducing bureaucracy and streamlining customs clearance. However, implementation faces challenges such as interoperability between systems and widespread adoption.
The potential of blockchain to revolutionize foreign trade is undeniable, and its use tends to grow.
Finally, let’s explore another crucial technology in this transformation: Big Data.
Big Data
The use of Big Data in foreign trade has allowed a more comprehensive and accurate analysis of information related to markets, demand, consumer preferences and trends. Based on the data collected and analyzed, companies can make more informed decisions, identify market opportunities, optimize transportation routes, and improve operational efficiency.
The Cheap2ship platform represents the Foreign Trade of the future
We would like to highlight the importance of this platform that deserves to be highlighted in the scenario of changes in foreign trade: Cheap2ship, whose goal is to simplify and streamline international operations.
It connects exporting and importing companies efficiently, offering a range of services and features such as international freight quoting, document management, cargo tracking, as well as a network of trusted partners in different countries.
With Cheap2ship, companies can count on a complete and integrated solution for their foreign trade needs, thus ensuring greater visibility, control and efficiency in their operations.
The platform uses advanced technologies such as Artificial Intelligence and Machine Learning to provide an innovative and personalized experience to its users.
