Digital trade routes: how software is redefining global commerce

For centuries trades have relied on physical roads, efforts and long journeys that connected countries hundreds of kilometers apart from each other.

While today a new route has emerged, one that aligns with the real cargo of the 21st century - information and data.  In an era in which we are surrounded by social networks, technologies and innovations a new trade route has been formed, one built not on spots and roads, but on digital tools.

Today's trade is no longer about social connections or logistics, but it is about intelligence, the reason why software is transforming interactions, products move and nations trade. Modern companies rely on different softwares’ application to manage and synchronise their operations’ steps. 

• Cloud based logistics: use of cloud software to have access to real-time data, management of supply chains operation and enhancing visibility and scalability.  It is mainly used to centralise data on remote servers accessible from everywhere, leading to increasing efficiency and cost savings.   

• Artificial intelligence (AI): This  new tool can directly help the organizational part of import and export by predicting the demands, suggesting the most optimal shipping routes and making adjustments for the inventory. In this way the company will save time and will be more likely to improve the logistical part of the business. 

• Blockchain: this is a decentralised and digital ledger more focused on the legislative part of a company and it helps recording transactions across a network of computers, making data immutable and transparent. In this way the company will secure the trade documentation, avoiding fraud or human error. 

• IoT (Internet of Things): sensors that track goods across the borders with real time data on temperatures, location and conditions.

  
  

These smart devices are able to talk to other devices over the internet, enabling systems to talk to each other without any human interaction.  Together, these tools are creating a new and modern Silk Road, more transparent, resilient and faster.  Smarter, faster and greener are the triple benefits of this new digital Silk Road.

Smarter: predictive analytics and demands give the possibility to business to respond to global market shifts instantly. 

Faster: digital custom clearance systems can reduce clearance times from days to just a few hours, increasing efficiency and lowering time consumed. 

Greener: Route optimization softwares reduce unnecessary transportations, reducing CO ₂ emissions and waste in packaging.

These new algorithms and softwares free the logistics from repetitive and systematic processes that slow down the efficiency and creativity of a business. Indeed thanks to these new tools, companies are focusing on developing new unique strategic planning, partnerships and innovations. 

Additionally they contribute not only to sustainability and efficiency, but also to inclusivity since they allow small businesses to enter and participate in the global trade. Therefore, for imports and exports embracing new software does not mean only adapting to new technologies, but also rethinking operations from scratch. 

It means starting investing in integrated digital platforms for logistics; using data analytics to make faster and smarter decisions; partnering with tech providers who can ensure scalability and exploring digital twin models of your supply chain to stimulate disruptions and optimize resilience.

In conclusion I would say that in the following decade we will see the world’s trade networks become even more digital, transforming the trade routes of tomorrow into roads written in codes.  

Writer: Valentina Ancona