14 Jul Experts meet to discuss Supply Chain Finance and International Trade
Experts meet to discuss Supply Chain Finance and International Trade
Many fintech innovations provide relevant solutions for the problems faced by logistics service providers and other partners in the industry. To increase exposure and help people explore the possibilities of these new technologies, Dinalog and Holland FinTech are organising several round tables on the subject. These round tables attract a broad range of professionals from both industries, as shown by our previous editions. In July, two very interesting discussions took place during our meetings on the subjects of supply chain finance (SCF) and international trade.
Supply Chain Finance 5th of July
Our meeting on Supply Chain Finance (SCF) solutions was held on July 5th, in cooperation with ING Commercial Finance, TVM and Penteia in Bunnik. The group of professionals at the table was diverse, ranging from people from large logistics services providers, representatives from the harbour and the Ministry of Economic Affairs, alongside several fintech companies. All parties were well informed on the matters at hand and brought their own expertise. ING, TLN and Panteia were asked to draft an overview of the subjects, which were used during the discussions at the round table. The following topics were part of the discussion at Bunnik:
- The benefits of SCF for industry partners including the broad applications.
- The use of SCF by the market leaders in the industry.
- The potential role for logistics service providers to facilitate SCF in the industry.
- Who could direct the joint efforts within the sector?
- Data and information ownership within the sector and relating issues.
International Trade on July 6th
Using fintech to increase the competitiveness of logistics
On international trade there have been some great discussions too. Fintech companies are already offering shipping companies an efficient alternative to financing international transactions with Letter of Credit. We observe a trend where fintech companies use core information from the logistical process to speed up transactions, while verifying that all conditions are met by all parties before the final transaction takes place. These solutions could also be used by service providers to help improve the financial processes behind transport accounts from shipping companies, allowing them a better view on their performance and that of their partners and subcontractors within the sector. This would provide shipping companies with a platform to adequately match their payments with real performance.
On July 6th companies from the air freight industry, the Dutch customs and several fintech companies join each other at the round table ‘Cross-over in International Logistics and Fintech’. The purpose of this round table was to explore how fintech and logistics could improve one another. Fintech parties Innpay, Third, Conpend and TransDocLink showcased the innovations from fintech to their partners in the logistics industry, while at the same time were given a look at the challenges and complexities within logistics. Together with Air Cargo Netherlands (CAN), Dinalog and Holland FinTech, more their twenty others joined the discussion at the round table.
The challenges in the logistics industry are rather clear: The complexity and lack of transparency in international supply chains offer parties a very high incentive to optimise their processes and combat the inefficiencies they are currently faced with. It does, however, remain difficult for shipping companies to fully grasp which possibilities are there to actually improve these processes. A first clear option for improvement would be the use of fintech-based payments solutions: Giving shipping companies an increased insights in performance and security of payments could provide a quality impulse throughout the international chain in Rotterdam and Schiphol. The participants to this event were triggered by the possibilities and synergies which could be created from the crossover brought forward by Dinalog, Holland FinTech and ACN. Several follow up sessions have already been planned to further delve into these solutions and come up with practical methods to implement them in the logistics industry.