Treasury News Network

Learn & Share the latest News & Analysis in Corporate Treasury

  1. Home
  2. Trade & FSC Management
  3. Financial Supply Chain Platforms

GT Nexus supply chain use Deutsche Bank for new efficiencies in P2P service

Deutsche Bank have announced its appointment as a global cash management bank for GT Nexus, the world’s largest cloud-based business network and execution platform for global trade and supply chain management. 

New efficiencies for GT Nexus Procure-To-Pay service

As part of their supply chain ecosystem GT Nexus operate a purchase-to-pay (P2P), invoicing and procurement service. To this service Deutsche Bank has added an innovative Payable on Behalf Of (POBO) structure in which GT Nexus use Deutsche Bank’s payment architecture to :

  • drawdown the monies due (via SWIFT MT101 message which contains unique reference fields and invoice numbers) from their network members’ (buyers’)  accounts held at third party banks
  • automate the payment of the monies owed to each buyers’ individual suppliers, see figure below. 

Deutsche Bank’s international cash management platform provides GT Nexus with the ability to process payment flows in more than eight currencies by taking advantage of the Bank’s branches in the US, UK and Hong Kong. 

GT Nexus are now able to offer a fully automated three-way match and payment to suppliers on their cloud-based platform, see figure below:

Source & Copyright©2015 - GT Nexus 

This arrangement fully automates the supply chain transaction process for buyers, driving working capital management  efficiencies for GT Nexus’ platform members while providing payment confidence, security and visibility to suppliers. Users are offered the option of making the payment to manually to GT Nexus for distribution to their suppliers. Most of the larger companies are expected to opt for the automated drawdown and payment service.

An important part of this POBO service for GT Nexus is the ability to use Deutsche Bank’s Autobahn Cash Enquiry App which enables them to view records of completed transactions and reference information, original instructions and outbound payment instructions. Users can initiate inquiries instantly while conducting research online and obtain detailed reports on volumes and types of inquiries, billable inquiries as well as Deutsche Bank’s performance in terms of resolution time. 

No need for L/C or BPO in a fully integrated supply chain 

One of the important options in a fully integrated supply chain like GT Nexus’s is that it eliminates the need for Letters of Credit or BPO. The business model at GT Nexus is much broader than most supply chains. They aim to deliver complete end-to-end supply chain visibility for manufacturers and retailers. GT Nexus connect buyer, seller and financial institution in a secure, electronic environment in the cloud. Transaction documents and data such as purchase orders, amendments and invoices are viewable to the financial institution. This opens the door to not only settlements and open account transactions, but programs such as early payment invoice discount programs.


CTMfile take: The combination of GT Nexus’s fully integrated supply chain combined with Deutsche Bank’s global Payment On Behalf Of service is an important example of how supply chains are developing: full integration of all players, processes, payments and financing. This is when true global efficiencies really appear, but for banks and other financial service suppliers outside of these integrated supply chains it will be very difficult to get any new business as they will be locked out.

Like this item? Get our Weekly Update newsletter. Subscribe today

Add a comment

New comment submissions are moderated.