As the landscape of international trade evolves, businesses must adapt to new challenges and leverage advanced tools to remain competitive. SAP Global Trade Services (GTS) has long been the preferred solution for managing trade compliance, customs and processes. However, with SAP announcing the end of mainstream maintenance for GTS by late 2025, organizations must transition to SAP GTS Edition for SAP S/4HANA (GTS E4H).

This migration is not merely a technical upgrade; it’s a strategic opportunity to modernize operations, ensure compliance and enhance efficiency.

The end of support for SAP GTS: Implications for businesses

SAP’s decision to end support for GTS aligns with its broader push towards SAP S/4HANA. However, this shift comes with significant consequences for businesses that rely on SAP GTS:

1. Increased risks: Unsupported software exposes organizations to security vulnerabilities, regulatory non-compliance and operational disruptions. For example, all new legal requirements will only become available in SAP GTS E4H.
2. Operational inefficiencies: Without updates, integrating with modern systems or adapting to new regulations will become challenging — and potentially costly.
3. Missed opportunities: Legacy systems lack the advanced features of SAP GTS E4H, preventing businesses from realizing the full potential of streamlined and future-proof trade operations.

Why upgrade to SAP GTS E4H?

SAP GTS E4H, built on the robust SAP S/4HANA platform, offers enhanced capabilities that address the demands of navigating the complexities of modern global trade. The power of SAP HANA’s in-memory technology, its integration, performance and scalability position it as a critical asset for businesses with large volumes of trade-related data.

HCLTech is currently working with our SAP GTS installed customer base to plan their migration journeys. We find that these customers are seeing value in the new functionalities that GTS E4H brings and are interested in developing detailed roadmaps to modernize their current platform and add additional functionalities.

Key benefits:

• Real-time insights: SAP S/4HANA’s in-memory database enables real-time analytics, providing visibility into trade operations and accelerating decision-making
• Enhanced user experience: SAP Fiori’s intuitive interface improves user productivity and streamlines workflows
• Improved integration: Seamlessly connects with other SAP S/4HANA modules for a unified view of business processes
• Ensure regulatory compliance: Offers built-in compliance tools for international trade laws, ensuring readiness for regulatory changes

New features:

• Advanced customs management: Automates customs declarations and risk analysis to reduce errors and improve processing times
• Trade preference management: Simplifies the management of trade agreements and reduces duties
• Sanctioned party screening: Utilizes machine learning for faster and more accurate compliance checks
• Enhanced performance: High-speed processing capabilities improve efficiency for complex trade scenarios

Migration options: Greenfield vs. Brownfield

Transitioning to SAP GTS E4H requires a well-thought-out strategy. Organizations typically choose between two migration approaches:

1. Greenfield Implementation – This option is best for businesses seeking to redesign and optimize their global trade processes. 
   1. Advantages: Fresh start with simplified architecture and streamlined workflows and opportunity to fully leverage new features and best practices
   2. Challenges: Higher costs and longer implementation timelines; also requires significant change management
2. Brownfield Migration – This option is best for companies looking to preserve existing investments while upgrading.
   • Advantages: Retains current processes, configurations and data and reduces implementation time and costs
   • Challenges: Limited flexibility for process redesign and potential effort required to address legacy customizations

For example, we helped one of the largest sportswear retailers modernize their global trade compliance SAP platform using a Brownfield migration approach and our Migration Factory. Their GTS platform was heavily customized (850 custom objects and 8 large integrations) around SPL (Sanctioned Paty List) screening. We developed a very detailed Roadmap to provide enhanced functionalities out of E4H around Preference Processing (FTA), enhanced import functionalities with broker interfacing, Customs CTPAT (Customs-Trade Partnership Against Terrorism Assessment) solution and export integrations with custom agencies by deprecating their existing GTS functions.

How do you choose the right approach?

Selecting the appropriate migration strategy depends on several factors:

• System complexity: Highly customized systems may benefit from a Greenfield approach to simplify processes
• Budget constraints: Brownfield migrations are often more cost-effective
• Business goals: Organizations prioritizing scalability and innovation may lean towards Greenfield
• Timeline: Tight deadlines might necessitate a Brownfield approach for faster deployment

How HCLTech’s AI-enabled Migrate+ Factory simplifies migration?

A successful migration requires careful planning, technical expertise and robust tools. HCLTech’s AI-enabled migration factory provides a comprehensive solution for transitioning from SAP GTS to SAP GTS E4H. This framework combines automation, AI, data transformation and compliance assurance to minimize risks and ensure a smooth migration.

Key Features of HCLTech’s Migrate+

• Automated assessment: Evaluate your current GTS set up to recommend the optimal migration strategy
• Data transformation: Facilitates seamless data transfer while maintaining data integrity
• Custom code optimization: Modernizes legacy customizations to align with SAP GTS E4H’s architecture
• Compliance assurance: Ensures adherence to regulatory requirements throughout the migration process
• Accelerated timelines: Speeds up implementation while maintaining high-quality standards

Benefits of using AI Migrate+

• Reduced costs: Automation lowers migration costs by minimizing manual effort
• Minimized downtime: Ensures business continuity during the transition
• Enhanced ROI: Unlocks the full potential of SAP GTS E4H’s advanced features
• Mitigates risk: Identifies and addresses potential migration challenges proactively

How to plan for a smooth transition to SAP GTS E4H?

A successful migration to SAP GTS E4H requires careful preparation and execution. Consider the following steps:

• Conduct a system assessment: Understand the scope of your current GTS setup, including customizations and data volume
• Define clear objectives: Align your migration goals with business priorities such as compliance, efficiency and scalability
• Select the right approach: Choose between Greenfield and Brownfield based on your organization’s needs and constraints
• Engage expert partners: Leverage the expertise of partners like HCLTech to guide you through the migration process
• Train your team: Familiarize your staff with the new system to maximize productivity and minimize disruptions

Conclusion

The transition from SAP GTS to SAP GTS E4H is a pivotal moment for businesses engaged in global trade. While the end of support for GTS presents challenges, it also opens the door to enhanced capabilities, streamlined operations and future-proof compliance with SAP GTS E4H.

Organizations must act decisively to assess their migration strategy, weigh the benefits of greenfield versus brownfield approaches and leverage advanced tools like HCLTech’s AI Framework. By doing so, businesses can ensure a seamless transition, safeguard their trade operations and position themselves for sustained growth in the competitive global market.

With the 2025 deadline fast approaching, now is the time to embrace the next generation of SAP Global Trade Services. Upgrade to GTS E4H and secure your organization’s future in international trade.