Making Supply Chains More efficient by Using Digital Technologies

Tony Faneco, CCO, Chinsay

2 DECEMBER 2020

COMMODITY TRADING Today Circa $10 trillion worth of commodities are produced

and consumed annually

The world is growing to meet the demand of a global population of 9.7Bn people by 2050

Competition is creating thin margins; accuracy and efficiency of execution is essential

Commodities are an essential element of modern life that cannot be replaced

International policy and Internal governance/compliance control the way we trade

THE SUPPLY CHAIN The physical delivery process. From Production to the

End User (Farm to Fork, Mine to Market)

Diverse collection of:

activities, organisations, regulations, customary habits and information.

Supply chains today can be characterised as:

Loosely coupled

Self organised

Based on workable conventions

Inherently lack transparency

Notoriously inefficient, error prone and unchanged for decades

THE SUPPLY CHAIN IS NOT ONE FLOW BUT MANY Optimisation of the Supply Chain means attention needs to be paid to every flow.

Physical flow – The movement of the product through controlling hands from producer to user

Financial flow – The payment for the product from end user to producer

Value flow – The value creating processes as a result of services provided, e.g. production, transport, finance etc.

Risk flow – The ownership of risk as the product passes through hands e.g. shipper, carrier, trader, financier etc.

Information flow – The diverse and highly complex workflow which provides essential data to facilitate every one of these flows. The reference sources are contained within contracts.

WHERE IS MY DIGITAL CONTRACT? The Sales contract and the Contract of affreightment are essential

reference documents which inform all supply chain activities

These contracts are negotiated and can be very complex, describing our obligations, options, nominations etc.

Yet often this essential documentation is not considered when addressing supply chain efficiency

Incorrect, late, unapproved data informing delivery of a product will cost you money

Digitalisation of the workflow to capture correct, compliant, authorised, validated data your business needs if you want to transform your supply chain.

NO ONE SOLUTION WILL DO

There are too many activities to be managed by one solution

Inter-operability and integration is essential

We must get used to the speed of innovation and the need for perpetual change

Solutions must be agile and accurate

Industry collaboration, standardisation, leadership

Unconnected digital islands linking front, middle and back office functions

CTRM

Deal Origination KYC/Account Opening Deal Approval Deal Contract Negotiation

Trade Risk Management LC Management

Parcel Management

Document Issuance Settlement

Credit Risk Legal & Compliance

Credit Legal

Market Risk

Operations

Emails + Manual Emails + Manual Emails Excel Emails + Manual Emails + Manual Emails + Manual Emails + Manual

Trade Finance

Blockchain E Bills

Finance ERP CHINSAY CHINSAY

Operations Operations Operations

Inventory Control

Trade Lifecycle

Potential Platforms

Contract Data Set

CHINSAY

Post Trade Digitalisation Efficiency “Battlefield” Pre-trade workflow and approvals

CHINSAY

Current Siloed

Manual Activities Traders

INTELLIGENT CONTRACT PLATFORM

Siloed and disconnected activities historically have captured unstructured data

The Intelligent Contract Platform digitalises your workflow

Capture correct and validated data

Approve and Audit activities to meet regulatory and compliance needs

Apply data to your own forms and documents

Now your digitalised Contract Data Set is ready to inform your supply chain flows

INTELLIGENT CONTRACT PLATFORM

Now your digitalised Contract Data Set is ready to inform your supply chain flows

Integrate with existing and new technology

Reporting and Visualisation (Portfolio, Business Unit or Desk level in real time)

For more information contact us at info@chinsay.com

visit our website www.Chinsay.com

Or book a demo https://www.chinsay.com/request-a-demo/

THANK YOU

mailto:info@chinsay.comhttp://www.chinsay.com/https://www.chinsay.com/request-a-demo/

Slide Number 1Commodity tradingThe supply chainThe supply chain is not one flow but many Where is my digital contract? No one solution will doSlide Number 7Intelligent contract platformIntelligent contract platformSlide Number 10