“Almost one in three large corporates globally failed to nominate any bank as a leader for supply chain funding sustainability.”
Supply chains are a key area of concern and uncertainty – and headlines.
Across the industry and in financial services, there is a high level of consternation the confluence of multiple geopolitical, macroeconomic, and pandemic related factors will continue to prevent global logistics players, shipping companies and port operators to clear the growing backlog and keep up with sharply increasing consumer and business supply chain demands.
Companies though are investing in digital innovation.
Digitising supply chain efficiency
According to East & Partners latest Global Insight Report “Digitising and Greening Global Supply Chains”, a mere 2 per cent of chief financial officers and corporate treasurers have failed to implement technology, or ruled out planning to, such as cloud computing to improve resilience and efficiency in their supply chain, internet-of-things (IoT), artificial intelligence (AI), Blockchain/distributed ledger technology (DLT) and automation.
The majority of those enterprises are based in the Asia region.
The Supply Chains report outlines what digital technologies corporates are implementing to improve resilience and efficiency in their supply chain but also, importantly, what is the most important digital functionality supply chain partners have requested but do not currently have access to.
East’s analysis asked whether banks are investing enough in “voice of the customer” led product and service enhancements or simply attempting the highly risky “build it and they will come” approach to innovation.
“We’re getting a lot of demand for a receivable financing platform to help digitise what are stretched shipment/delivery times and late payments happening as a result. Actively looking at getting something in place for our partners by year’s end but it needs to be fully digitised.”
Group Treasurer, US$20Bn, German Light assembler
Opportunities in sustainable finance
Corporates are voting with their feet when it comes to supply chain sustainability. The research outlines the enormous opportunity for both incumbent banks and challengers to offer a clear point of distinction based on their unique environmental, social and governance (ESG) credentials.