Trade finance instruments have made it difficult for all parties involved in the process to collaborate effectively. The involvement of numerous parties such as banks, sellers, buyers, insurance companies, logistics companies, etc. complicates the interaction process.
There is no unified communication system for commerce, and various means of communication such as emails, paper documents, and internal company websites, etc., further complicate the process. Error corrections and waiting times take a lot of time, and it's difficult to synchronize the processes with each other.
The level of complexity can be enormous. In one Maersk case, the chain for a shipment from Kenya to the Netherlands consisted of more than 200 interactions involving over 100 people, and the shipment took 34 days, with 10 days spent on paperwork alone. According to the Boston Consulting Group, a single transaction in a trade finance instrument can involve around 5,000 interactions with data fields.
The level of complexity can be enormous. In one Maersk case, the chain for a shipment from Kenya to the Netherlands consisted of more than 200 interactions involving over 100 people, and the shipment took 34 days, with 10 days spent on paperwork alone. According to the Boston Consulting Group, a single transaction in a trade finance instrument can involve around 5,000 interactions with data fields.
