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Showing posts with the label trade financing

Does the finance chalice pass SCM by?

The rapid proliferation of digital technology in recent years has disrupted global trade and supply chains. As we continue to embrace this transformation, we are ushering in a new era of flexibility in business operations, shattering traditional barriers, and redefining industry standards. As the industry continues to embrace these advancements, we stand at the precipice of a new era in global trade characterized by unprecedented speed, agility, and efficiency. In traditional frameworks, supply chains were primarily viewed as linear processes that involved physical components. In traditional frameworks, supply chains were primarily viewed as linear processes that involved physical components. However, this limited perspective has led to one of the underlying challenges in supply chain management. The discipline of supply chain management has long been strongly associated with logistics, overlooking the broader aspects of a comprehensive supply chain strategy. This narrow focus became e...

For Businesses in need of swift and flexible Trade Financing

  Did you know that global supply chains are in disarray, with a whopping $15 trillion at stake and escalating disruptions? It's like a game of Jenga, where one wrong move can bring the whole tower crashing down. No wonder a staggering 56% of businesses are experiencing adverse effects, and 30% of shipments are encountering damages or delays. It's time for a transformative approach to supply chain risk management-based financing. And what's the solution, you may ask? Introducing continuous visibility utilizing advanced technologies such as the Internet of Things (IoT), Business Intelligence (BI), and Artificial Intelligence (AI). It's like having a team of superheroes that can see through walls and predict the future! These innovations allow for a comprehensive assessment of risks by viewing the supply chain through the lens of the cargo itself. Envision a scenario in which cargo is monitored at every stage, from production to warehousing and retail. It's like havin...

Can Supply Chain Financing benefit from Cargo Monitoring?

If you were a bakery around the next corner, you would be selling your bread or sandwiches just over the counter. You will see and talk to the person just in front of you and you would immediately get the money for your product sold. You know the buyer, you trust him because you immediately get the money and there is not much risk involved. If you were an exporter/seller and your buyer is thousands of kilometers away, the situation may look different. Each party tries to reduce its risk. The buyer might tell you, that he will not pay any invoice before he has not received the product in good quality. And you might tell the buyer, that you will not ship anything, before you have not received the money. Banks address this dilemma with supply chain/trade-financing, a financial service that has been invented already several hundred years ago. You, as the seller, don’t want your foreign receivables sitting out there for months doing nothing. It is your working capital and therefo...