Chen, who has a background in finance, said GSBN’s technology can facilitate the secure sharing of data that’s needed to settle trade.
The Covid-19 pandemic is introducing the technological transformation of global supply chains as now there can be a shift from paper to digital transactions. That’s an emerging industry view as the ongoing disruptions force manufacturers, ship operators and importers to accelerate their investments in technology to smooth out kinks, reduce delays and ultimately cut costs.
Among those on the front lines: Bertrand Chen, the chief executive of Hong Kong-based Global Shipping Business Network, a nonprofit technology consortium set up to simplify the business of trade through the use of blockchain. Its backers include some of the world’s biggest shipping lines and terminal operators. Chen, who has a background in finance, said GSBN’s technology can facilitate the secure sharing of data that’s needed to settle trade.
The company’s product — Cargo Release — is said to have cut the process of physical exchanges of documentation at Shanghai port to less than two hours instead of as many as three days by stripping out the process of queues and in-person interaction.
Chen, who has a background in finance, said GSBN’s technology can facilitate the secure sharing of data that’s needed to settle trade.
There are no more people going to a shipping line counter to present documents, Chen said. He says the pandemic disruption will force through change in the industry. The Asia Development Bank last month warned that the global trade finance gap rose 15% to $1.7 trillion in 2020 and say solutions include global standards and legislation for the digitalization of trade’s eco-system which would generate data, increase transparency, improve interoperability and ultimately boost access to trade finance.
Meanwhile, a report this month from HSBC economists titled “Smart Supply Chains†said manufacturers are going to deploy “internet of things†technology to, among other things, track inventory in real-time and monitor equipment so they know when a machine is likely to go down. “The COVID-19 pandemic has underscored the importance for businesses to embrace digital solutions more than ever before,†according to the HSBC report.
Troubles in the supply chain first cropped up earlier this year. Electronics companies ranging from video game console makers to automobile suppliers reported difficulties in obtaining some lower-end chipsets for their products. More recently, the issue has been exacerbated by shipping delays, staffing issues, and other problems. Then, during the summer, the situation began dragging on different parts of the telecom industry. Equipment suppliers like Adtran began warning about dwindling product supplies. Smartphone vendors like Samsung couldn’t keep shelves stocked. And service providers like AT&T were forced to reduce their fiber network expansion plans.
And service providers like AT&T were forced to reduce their fiber network expansion plans.
