Chapter 8 Technology as an enabler to increase visibility

Technology as an enabler to increase visibility

In brief:

Recognising the scale of both the challenge and the opportunity that building sustainable and resilient supply chains poses, companies are turning to technology solutions to manage and monitor supply chain flows, risks and environmental impacts. Overall, four in five companies (around 80%) use technology and data solutions to address supply chain optimisation challenges.

Figure 18: Use of technology and data solutions

Interviewees reiterate the importance of using technology to reduce complexity and create greater visibility and control throughout the supply chain. They report using a range of solutions – from standard process automation solutions to more cutting-edge tools that facilitate tracking and tracing, to financial tools and platforms provided by their banking partners.

Banks should try as much as possible to provide visibility into trade transactions. Most of them set up platforms where they grant us rights, so that we see and monitor our financial transactions easily.

Chief Financial Officer
Retail, Hong Kong

Technology is key for maximising the reach and efficiency of trade finance, as well as in sustainability. It enables you to control risks and manage costs. But the solutions are still quite disparate, requiring partnerships with fintechs, verifiers, and investors. No one can go at it alone.

Pradeep Nair
Head, Structured Solutions, Standard Chartered

Top tip:

Consider working with banking partners that leverage technology solutions that can help you continuously assess your supply chains, identify potential weak spots, and improve effectiveness of supply chain finance programmes. Standard Chartered works with the most innovative technology partners and platforms to provide greater visibility and automation across the financial and physical supply chain. For example, we employ distributed ledger technology and the internet of things for better tracking and tracing. Our automation, machine learning and data solutions enable expedited and more inclusive supply chain financing even for smaller deep-tier suppliers. We use platforms to measure our clients’ carbon emissions and carbon footprint as we help businesses transition to a net-zero carbon economy by 2050.