In today’s highly interconnected world, businesses must comply with complex global trade regulations while maintaining operational efficiency. SAP Global Trade Management (SAP GTM) is a specialized component within the broader SAP Supply Chain Management (SAP-SCM) framework designed to support companies engaged in international trade. It enables organizations to manage, monitor, and optimize their global trade processes by automating compliance checks, managing trade documentation, and improving visibility across the global supply chain.
SAP GTM is part of the SAP ERP and SCM suite, tailored for companies involved in global trading, importing, exporting, and compliance management. It is especially beneficial for industries such as pharmaceuticals, chemicals, automotive, and consumer goods where trade compliance is critical.
GTM allows businesses to handle:
SAP GTM automates the enforcement of global trade regulations by integrating with compliance databases. It enables real-time screening against sanctioned party lists, embargo checks, and license management, ensuring legal compliance before executing cross-border transactions.
GTM supports customs documentation and declarations by integrating with government systems, reducing manual effort and ensuring timely clearance of goods. It includes features such as Electronic Data Interchange (EDI) for customs and duty calculation.
Automatic generation of trade-related documents such as:
This helps standardize and accelerate trade processes while reducing errors.
Helps assign Harmonized System (HS) or Export Control Classification Numbers (ECCN) to products for legal trade. Proper classification is critical for duty payments and compliance.
Manages Free Trade Agreement (FTA) preferences by verifying origin rules and calculating preferential duty rates. This allows businesses to reduce import duties and improve competitiveness.
GTM helps businesses understand the total landed cost of goods by factoring in customs duties, tariffs, taxes, freight, and insurance, aiding in more accurate pricing and profitability analysis.
SAP GTM integrates seamlessly with other SAP components to offer end-to-end trade functionality:
While SAP GTM focuses on trade transactions and cost management, SAP GTS (Global Trade Services) offers deeper regulatory compliance and customs management. Many businesses implement both GTM and GTS to cover all facets of global trade.
| Feature | SAP GTM | SAP GTS |
|---|---|---|
| Focus | Trade execution and documentation | Trade compliance and customs |
| Best For | Trade operations | Regulatory and legal compliance |
| Integration | With SD/MM for trade flow | With legal content providers |
SAP Global Trade Management (GTM) is a vital tool for enterprises managing international trade in the dynamic landscape of global commerce. By integrating trade processes with supply chain activities, SAP GTM not only ensures legal compliance but also enhances transparency, reduces costs, and drives operational efficiency. When combined with modules like SAP GTS and SAP TM, businesses can create a robust, compliant, and efficient global trade framework that supports long-term growth and competitiveness.