The Financial Supply Chain refers to the end-to-end trade processes and information that drive a company's cash, accounts, and working capital. From a buyer's perspective, this involves the full procurement-to-payment process. For the seller, it is the order-to-cash cycle.
In both cases, the goal of the Financial Supply Chain is to optimise:
Financial Supply Chain benefits have proved elusive because of the complexity associated with international trade. T he end-to-end trade cycle involves a number of different types of parties needing to exchange information and a variety of contractual documents in a timely manner. Point solutions have provided limited value with limited ability to scale and broader e-Commerce initiatives have failed to provide the platform to manage the complexity of Global Trade, typically being proprietary by nature and/or simply consolidating data and being unable to replace the full content and legal context of paper documents.
To overcome these barriers, enabling technology must meet critical pre-requisites to be practical, and deliver enduring value to each member of the trading community:
In both cases, the goal of the Financial Supply Chain is to optimise:
- Accounts payable and receivable
- Cash management
- Working capital
- Transaction costs
- Risk
- Administration
- Time required to create, transfer and process paper documentation
- Cost and errors associated with manual creation and reconciliation of documentation
- Lack of transparency in inventory and cash positions when goods are in the supply chain
- Disputes arising from inaccurate or missing data
- Fragmented point solutions that do not address the complete end-to-end processes of the trade cycle
Financial Supply Chain benefits have proved elusive because of the complexity associated with international trade. T he end-to-end trade cycle involves a number of different types of parties needing to exchange information and a variety of contractual documents in a timely manner. Point solutions have provided limited value with limited ability to scale and broader e-Commerce initiatives have failed to provide the platform to manage the complexity of Global Trade, typically being proprietary by nature and/or simply consolidating data and being unable to replace the full content and legal context of paper documents.
To overcome these barriers, enabling technology must meet critical pre-requisites to be practical, and deliver enduring value to each member of the trading community:
- Progressive acceleration, automation and optimisation of the Financial Supply Chain processes leading to paperless trade
- Scaleable to support all settlement types, all documents, all parties and cross industry applicability
- Interoperability with e-Commerce and Trade Community platforms and applications
- Incremental application components to deliver targeted value, speed of implementation and a direct return on investment
- Trusted Third Party platform with neutrality through governance
- Full coverage of the commercial, logistics, financial and regulatory documents required for international trade
- Legal Infrastructure to ensure progression to completely paperless trade
- A complete business platform incorporating information, document content, document context, legal framework and a robust foundation for the provision of trade finance