Newsletter
TradeCard News - August 2004
Financial Supply Chain Automation - The Hosted way to Procure-To-Pay
Welcome to TradeCard's monthly e-mail newsletter - a summary of the latest news from TradeCard.
To read this newsletter in other languages, please click here:
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Starting this month, we will provide you with a tip on how to conduct better global trade in the
column "Principles of Better Trade". These tips are driven by the real-world experience of our members.
We'd also love to hear from you. Send trade tips, suggested topics, or questions for our management team to
sales@tradecard.com
TEN PRINCIPLES OF GLOBAL TRADE: TAKING FULL ADVANTAGE OF THE INTERNET FOR TRADE COMMUNICATIONS
NOTES FROM THE ROAD: GUY REY-HERME ADDRESSES THE IMPACT A FINANCIAL SUPPLY CHAIN SOLUTION SHOULD
HAVE ON SUPPLIERS
HEADLINES: RECENT ARTICLES THAT HAVE FEATURED TRADECARD
EVENTS: UPCOMING TRADESHOWS, CONFERENCES, WEB SEMINARS AND MORE
TEN PRINCIPLES OF GLOBAL TRADE * TEN PRINCIPLES OF GLOBAL TRADE *
PRINCIPLE 1:
Taking full advantage of the Internet for trade communications
Global trade is reaching out to the most isolated regions, bringing together buyers and sellers with different
languages and cultures. All parties have to cope with faster turnaround, smaller consignments, Just-In-Time
delivery, and tight deadlines. When trade is this tough, the ability to share information in real-time, 24/7
around the globe is critical. That's one reason why the Internet has become so valuable to trade.
Another is that international sourcing is fast and furious, with buyers searching the globe to find where the
cheapest materials and labor are today. Leading players need to beat the cost of paper documents, labor, errors
and delays and get some visibility on their transactions. They find only the Internet is fast, cheap and accurate
enough for today's global trade.
Likewise, the latest Economist Intelligence e-business rankings report observes, "The tools of e-business are
becoming more ingrained and more affordable in corporate operations and consumer behavior. The utility of the
Internet is increasingly evident as a result, in developed and developing economies alike."
The fact is, you have to manage all your trade partners, from the smallest SME to the largest multinational. That
means handling EDI from ERP systems, email, phone and fax, and every kind of electronic document, from purchase
orders and invoices, to customs and insurance. Only one system can handle all traffic and interface with all
networks - that is the Internet.
- Rely on the Internet, even in developing countries
- Get to the best deals first with online sourcing
- Enjoy a competitive edge from 'Web speed'
- Cut language and culture barriers with electronic communication
- Abandon paper and slash your transaction costs
To find out how the country you are trading with was ranked in the 2004 e-business readiness report by the
Economist Intelligence Unit, go to: http://www.finfacts.com/ebusiness/ebusiness2004.htm
NOTES FROM THE ROAD * NOTES FROM THE ROAD * NOTES FROM THE ROAD *
This month, Guy Rey-Herme, TradeCard's president, addresses the impact a financial supply chain solution should
have on suppliers.
Both suppliers and buyers must find value from shared financial supply chain solutions. That's the key to reducing
costs - rather than pushing them to trading partners, where they reappear as higher prices.
On a recent swing through Asia, I met with several suppliers who shed additional light on this issue. Here are two
points I took away.
1) Financial supply chain solutions must benefit vendors of any size.
One small supplier had just climbed on board its financial supply chain solution. The supplier's managing
director explained, "We were initially worried about another system mandated by our customers. But this web-based
platform allows us to meet our customers' needs without investing in technology. Meanwhile, we gained an orders,
invoice and payments system that I can access from anywhere."
An operations executive at a top apparel manufacturer gave me a completely different story. He discussed how
they'd just integrated their financial supply chain platform with a complex ERP system, fully automating their
accounts receivable processes.
Buyers with diverse supplier bases should keep these disparities in mind. Look for technologies that can match
different technical infrastructures, leveraging sophisticated ERP and supply chain systems or basic PC-based web
services. The solution must be transparent to a buyer's organization. This is key to maximizing adoption and
savings.
2) Expanding operating cash flow is a strategic issue.
Many suppliers are searching for additional sources of operating cash flow, particularly because of payment terms
extensions.
Good financial supply chain solutions offer financial services that mitigate this issue, such as credit protection
and export financing. Early payment programs are also very beneficial. As one financial director noted to me, "I
can choose to get paid any time after shipment. It's a new source of operating cash flow in addition to my bank
lines. Plus, it helps my balance sheet by significantly reducing my receivable accounts."
When it comes to financial supply chain initiatives, providing flexibility and value to all trading partners
accelerates adoption, improves data quality and increases return on investment.
HEADLINES * HEADLINES * HEADLINES * HEADLINES * HEADLINES * HEADLINES
Recent TradeCard headlines:
When Burton Snowboards talked about its procurement savings from TradeCard, the media listened. The announcement
was covered by:
Other TradeCard headlines included:
- Scambi, tramonta la lettera di credito - June 6, Milano Finanza
- Entering the New Era of the Financial Supply Chain - July 29, 2004, Hong Kong Economic Journal (in Chinese)
- Tristate inks service deal - July 30, The Standard
- TradeCard to challenge letters of credit - July 13, Ming Pao Daily (in Chinese)
- Gaining a competitive edge to meet the post-quota challenge - August 2004, Textile & Clothing (in Chinese)
- Market view: Kurt Cavano - August 2004, Trade & Forfaiting Review
To read the full article, click here.
EVENTS * EVENTS * EVENTS * EVENTS * EVENTS * EVENTS * EVENTS * EVENTS
In the coming months, TradeCard will participate in:
- TAIPEI, September 14. Asia PKI-Forum - Carl Wegner from TradeCard Taiwan will present a case study.
- TAIPEI, September 21. TITAS, Taiwan International Textile and Apparel Show 2004. A speaker from TradeCard
will talk about "Using technology to modernize a traditional industry."
- HONG KONG, September 22. Kurt Cavano will give a talk at the Hong Kong General Chamber of Commerce.
- KAOHSIUNG, TAIWAN, September 23. Carl Wegner will give a talk at the "2004 Forum for Global Managers"
organized by the National Sun Yat-sen University, Kaohsiung.
- TAIPEI, September 27. Kurt Cavano will give a talk at the American Chamber of Commerce Taipei.
- BRESCIA, ITALY, October 7. Senior executives from TradeCard and The World Trade Centers Association Italy
will participate in an introductory seminar about TradeCard's services. The event is organized by the WTCA
network Italy.
Be sure to check our web site for updates on where we'll be next.
This newsletter can also be viewed at the Hong Kong General Chamber of Commerce website at
www.chamber.org.hk/hknewsletters/
