Business owners for small and medium-sized business have something to smile about. To a greater extent with these changes in place, the wealth of nations is also bound to increase.
A white paper published on The World Economic Forum’s website provides granularity concerning the potential of technology in trade and supply chain finance. The white paper, dated September 13, 2018, is the result of a joint intervention between the system initiative on shaping the future of international trade and investment with the supply chain and transport industries.
The effort of this initiative is expected to bring revolutionary change that will benefit trade and supply chain finance.
What does it address?
Through the white paper, the objectives of the joint initiative between these two parties are shown. Trade and supply chain finance is an area that remains to be among the few that are not extensively exploited.
The initiative takes a look at this unexploited area and formulates measures of improvement. It is determined that old-fashioned processes continue to cripple small and medium-sized business as well as pose a significant obstacle for trade within emerging markets.
Therefore, major emphasis is put on the status of technological investment as far as trade and supply chain finance goes. The aim is to transform documentation from the paper-based forms to electronic format through technology integration and application of smart tools.
Through the initiative, the transformation to a paperless mode of operation will facilitate the narrowing of the trade finance gap that is currently $ 1.5 trillion.
For small and medium-sized businesses this means a reduction of obstacles that limit trade. For instance, the paper trail that takes a lot of time to process.
Concurrently this will reduce border processing times for SMEs and companies located in developing countries that face higher risks.
Technology continues to manifest itself in pretty much every aspect of our lives. Many business forms have included consideration for technology within their operations. The initiative as detailed by the white paper is well received and will go a long way in ensuring seamless operation for trade and supply chain finance.
International trade and global value chains depend a lot on trade and supply chain finance operations, therefore having a smooth operating system that is backed by smart tools and technological advancements will help increase the wealth of nations while reducing geopolitical tensions.