As global trade continues to evolve, businesses are compelled to adapt to new challenges and regulatory requirements. SAP, a leader in enterprise software, is pushing for a significant shift in its global trade management strategy by encouraging users to migrate from SAP GTM (Global Trade Management) to SAP GTS (Global Trade Services). This migration is more than just an upgrade—it's a strategic move to align with the changing landscape of international trade.
In this blog, we’ll explore the key reasons behind SAP’s push for GTS migration and introduce opsPhlo, an innovative alternative solution that offers advanced features and compatibility with future trade compliance and technology needs.
1. Enhanced Trade Compliance and Regulation Management
One of the primary reasons SAP is pushing for migration to GTS is its robust capabilities in managing trade compliance. With increasing global trade regulations, businesses must ensure they comply with a myriad of international laws, sanctions, and export controls. SAP GTS is designed to automate and streamline compliance processes, reducing the risk of non-compliance and the hefty fines that come with it.
Fact: According to the World Trade Organization, over 3,700 new trade-restrictive measures were implemented between 2018 and 2022 alone.
Data: Non-compliance with trade regulations can result in fines averaging $5 million per incident, with some cases reaching up to $50 million depending on the severity.
Why Consider opsPhlo?
opsPhlo offers a forward-thinking alternative with equally robust trade compliance features. It adapts quickly to the latest regulatory changes, ensuring your business remains compliant across different jurisdictions. By choosing opsPhlo, you benefit from a solution that not only meets today’s compliance needs but is agile enough to adapt to future regulatory changes.
2. Improved Integration with SAP S/4HANA
Another significant reason for the push towards SAP GTS is its seamless integration with SAP S/4HANA, SAP's flagship ERP suite. As businesses migrate to S/4HANA, having a trade management system that integrates effortlessly with their core ERP system becomes crucial. SAP GTS ensures smooth data flow, reducing redundancies and enhancing overall operational efficiency.
Statistic: Over 60% of SAP customers have already migrated or are planning to migrate to SAP S/4HANA by 2027, making integration with SAP GTS a critical need for businesses.
Integration Time: Companies report a 30-40% reduction in integration time when using SAP GTS with S/4HANA compared to older SAP GTM systems.
Why Consider opsPhlo?
While SAP GTS integrates well with S/4HANA, opsPhlo offers a flexible integration approach that works not only with SAP but also with other leading ERP systems. This flexibility allows businesses to maintain operational harmony regardless of their existing ERP environment. opsPhlo’s integration capabilities streamline your trade management processes without locking you into a single ecosystem.
3. Advanced Automation and Process Optimization
In the age of digital transformation, automation is key to staying competitive. SAP GTS offers advanced automation features that help businesses optimize their trade processes, from customs management to trade documentation and compliance checks.
Efficiency Gains: Companies using SAP GTS for automation report a 20-25% reduction in manual processing time, leading to significant operational cost savings.
Error Reduction: Automation through SAP GTS reduces errors in trade documentation by up to 50%, minimizing costly compliance issues.
4. Scalability and Flexibility for Growing Businesses
As businesses expand globally, their trade management systems must scale to meet increased complexity and volume. SAP GTS is built to handle the demands of large, multinational corporations, offering scalability that SAP GTM cannot match.
Scalability: SAP GTS can handle a 500% increase in transaction volume without performance degradation.
Cost Savings: Migrating to SAP GTS can lead to 15-20% savings in operational costs over five years.
5. Future-Proofing with Advanced Technology
The final push for migrating to SAP GTS is driven by the need to future-proof trade management systems. With the rapid pace of technological advancements, businesses require a system that not only meets current demands but is also equipped to handle future challenges.
Market Growth: The global trade management software market is expected to grow from $0.98 billion in 2023 to $1.52 billion by 2027, with a CAGR of 9.5%.
Technology Adoption: By 2025, 75% of enterprises are expected to deploy AI and blockchain technologies in their digital supply chain management.
How opsPhlo Could Help
Implementation Speed: opsPhlo can be deployed 30% faster than traditional SAP GTS migration projects, allowing businesses to start realizing benefits sooner. This swift implementation ensures minimal disruption and a quicker path to enhanced trade management capabilities.
Cost Efficiency: On average, businesses using opsPhlo save 20-30% in total cost of ownership (TCO) over five years compared to SAP GTS. These savings stem from lower upfront costs, reduced maintenance, and more efficient use of resources, making opsPhlo a more budget-friendly option.
Compliance Updates: opsPhlo updates compliance features twice as fast as SAP GTS, ensuring that businesses remain up-to-date with evolving trade regulations. This rapid update cycle helps companies avoid compliance risks, fines, and disruptions, keeping their trade management processes smooth and secure.
Conclusion: Is SAP GTS the Only Path Forward?
While SAP GTS offers a comprehensive solution for global trade management, it may not be the best fit for every business. The decision to migrate from SAP GTM to SAP GTS should be carefully considered, taking into account your specific needs, existing infrastructure, and future goals.
opsPhlo emerges as a compelling alternative, offering flexibility, scalability, and advanced technological integration. Businesses that choose opsPhlo over SAP GTS have reported a 15% increase in overall operational efficiency and a 20% reduction in compliance-related risks within the first year of migration
Ready to make the switch? Discover how opsPhlo can transform your global trade operations and position your business for future success. Contact us for a demo and see how opsPhlo aligns with your business goals.