Companies involved with global and transnational trade need management processes to navigate compliancy, regulations, and other trade issues specific to the countries they are trading with. This is a daunting task, not only because of the copious amounts of information and regulation but also because trading companies are held accountable for non-compliance. Typically supply chain management solutions (SCM) and enterprise resource planning solutions (ERP) lack strong international logistics and global trade management (GTM) capabilities. In light of this over sight, the merger between JPMorgan Chase Bank, N.A. (NYSE: JPM), a leading global financial services firm and Vastera (NASDAQ: VAST), a public global trade solutions provider, is looked upon with great interest. Supplementing JPMorgan Chase's financial services with Vastera's global trade management software will likely make JPMorgan Chase the first financial institution to offer a complete set of integrated cash, trade, and logistics solutions across the physical and financial supply chain.
Part two in the Merging Global Trade Management with Global Finance series.
Vastera provides global trade services that manage the flow of information throughout the global trade community to improve visibility of international product movement and more quickly move goods from country-to-country. To help companies fulfill global demand, forwarders, carriers, and brokers have joined financial institutions and customs agencies to form the global trade community. Improving near real-time collaboration between the members of the community has also become essential to maintaining control over the movement of goods.
Vastera's initial services began with application software designed to address logistics and country-specific regulations including taxation, duty, and licensing, etc. After acquiring Ford Motor Company's global custom import operations, it broadened its services to include trade management business process outsourcing (BPO) services. These trade services became the backbone of its Managed Services Provider (MSP) offering.
Managed Services Expanded
Managed Services is now Vastera's principal line of business. While the vendor has numerous Managed Services customers, its two largest customers, supplied 69 percent of Managed Services revenues in 2003. Specifically, its Managed Service agreement with Ford included the administration, automation, and management of Ford's global trade import operations in the US, which will be in effect until August 2005. This relationship has expanded to include the administration and management Ford's global trade import operations in Mexico, Canada, the UK, Spain, Belgium, and Germany. These agreements provide Vastera with a guaranteed, predictable, and recurring revenue stream worth about $25 million (USD) in annual revenues from the agreements with Ford US, Ford Mexico, Ford Canada, and Ford Europe in 2004.
source
http://www.technologyevaluation.com/research/articles/navigating-global-trade-waters-17939/
Part two in the Merging Global Trade Management with Global Finance series.
Vastera provides global trade services that manage the flow of information throughout the global trade community to improve visibility of international product movement and more quickly move goods from country-to-country. To help companies fulfill global demand, forwarders, carriers, and brokers have joined financial institutions and customs agencies to form the global trade community. Improving near real-time collaboration between the members of the community has also become essential to maintaining control over the movement of goods.
Vastera's initial services began with application software designed to address logistics and country-specific regulations including taxation, duty, and licensing, etc. After acquiring Ford Motor Company's global custom import operations, it broadened its services to include trade management business process outsourcing (BPO) services. These trade services became the backbone of its Managed Services Provider (MSP) offering.
Managed Services Expanded
Managed Services is now Vastera's principal line of business. While the vendor has numerous Managed Services customers, its two largest customers, supplied 69 percent of Managed Services revenues in 2003. Specifically, its Managed Service agreement with Ford included the administration, automation, and management of Ford's global trade import operations in the US, which will be in effect until August 2005. This relationship has expanded to include the administration and management Ford's global trade import operations in Mexico, Canada, the UK, Spain, Belgium, and Germany. These agreements provide Vastera with a guaranteed, predictable, and recurring revenue stream worth about $25 million (USD) in annual revenues from the agreements with Ford US, Ford Mexico, Ford Canada, and Ford Europe in 2004.
source
http://www.technologyevaluation.com/research/articles/navigating-global-trade-waters-17939/
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