As popular wisdom states, change is the only constant in life. Similarly, in international commerce, between the pandemic and the conflict in Ukraine, uncertainty has been a constant these last three years, posing serious threats to businesses looking to thrive in cross-border trade. Amid all this volatility, the increased focus on regulatory oversight and compliance, makes for an even more challenging business environment.
Writ large, these systemic shocks may become far more frequent and thus require changes to business models in a rapidly evolving global cross-border environment. While businesses cannot predict what and when the next disruption will be, technology deployed adroitly, can make their supply chains, cross-border trade resilient and future proof.
While the sheer volume of documentation and data field exchanges are fundamental aspects of trade finance, relying on entrenched manual, operational methods, only increases inefficiency, reduces transparency and stunts growth. Simplifying complex processes holds the key to operational improvement and a more inclusive future for global trade.
This requires digital transformation via no-code, integrated blockchain solutions, that deliver multi-enterprise supply chain business networks (MESCBNs) with trust, privacy, and security through access to decentralised and trusted databases. As a consequence, stakeholders gain real-time transparency to monitor risks and respond accordingly.
With blockchain, transactions that typically take days and weeks are significantly shortened, with documents shared and processed by all stakeholders in the supply chain in real time. Through improved turnaround times and enhanced auditability, enterprises invariably reduce overhead costs, increase operational efficiency and become better equipped to operate in fluctuating demand environments. Supply chain management, supported by blockchain allows deals to be closed quicker while assuring stakeholders through complete visibility over every step of the transaction process.
Building more agile supply chains
Cloud-enabled supply chains empower enterprises to improve their information technology efficiencies, access consistent data across trade workflows and leverage detailed analytics. This empowers businesses to build reliable processes that enable better, more informed decision making, and drive growth by opening avenues to new markets. With the accessible and collaborative tools of the cloud, trading enterprises can reduce bottlenecks, enhance their capacity forecasts and organisational performance with greater business intelligence.
Blockchain with cloud computing brings in the necessary trust needed by trading partners in global supply chains amid global commerce’s evolving landscape. Individual supply chain transactions are documented and grouped through digital registers. This reduces the scope for fraudulent transactions by accurately measuring and storing data. Furthermore, blockchain also equips traders with traceability of where and how goods are sourced, promoting sustainable development and enabling businesses to act as the driving force of the global push for a more efficient and just society.
While time-consuming, traditional supply chain systems contribute to the pressure on global commerce, digital capabilities and technology can recalibrate business operations and make global supply chains smarter. Together, blockchain and cloud technologies are promoting seamless digital collaboration across trade flows.
Focusing on digitisation, collaboration and authentication eliminates complex paper shuffling, expedites customs clearances and reduces shipping and logistical delays. As a result, global supply chains become more efficient via added traceability. Banks cut operational costs, while enterprises, too, reduce finance costs. In addition, the significantly improved trade flow visibility will open up net new credit lines for traders of all sizes, thanks to the newfound ability to prove provenance from origin to customer. The sheer importance of global supply chains to our livelihoods cannot be overstated, and solutions that require zero reconfiguration will drive global commerce down the path of repeatable, digitally-executed transactions.Source: CIO