The trade and financial supply chain platforms provide the linkage between the buyer and their suppliers. The four types of platform have very different focus and coverage of the basic functions in the Physical Supply Chain (PSC).
Types of Trade / Supply Chain Platforms and Networks
Source: J&W Associates Copyright© 2011
Global Trading Platforms & Networks
The B2B online trading platforms provide a market place for buyers and suppliers world-wide as well as providing the traditional financial supply chain support services. The range and type of services include: quotation, negotiation and contract support, workflow and requisition management, purchase order matching, dispute resolution, and full visibility of payables/receivables. They also provide advice on how to promote goods and services, factory audit reports, price watch, and escrow services.
There are three types of trading platforms:
- general B2B platforms for SMEs
- general B2B platforms for mid-large companies
- industry sector platforms, e.g. automobile manufacturers.
General Trade Finance & Supply Chain Management Platforms
Many of the larger banks offer online global trade and supply chain platforms providing a comprehensive range of services. These platforms improve transaction initiation, simplify trade flows, reduce risk, facilitate financing, and can also help to optimize working capital management.
Procure-to-Pay / Order-to-Cash Platforms
The buyer based Procure-to-Pay platforms integrate procurement, e-invoicing and payments. The supplier based Order-to-Cash platforms integrate order, billing and payment processing.
Trade Finance Based Platforms
There are two main types of trade finance based platforms: specialist supply chain finance platforms and general trade finance platforms which are covered in Trade Finance.