Banking News

Digitalising Global Supply Chains to Enhance Resiliency – TFG

(18 April 2024 – Global) The ability of corporates to effectively manage risks across disparate supply chains hinges on their capacity to leverage digitalisation to enhance efficiency, transparency and resilience.

Trade Finance Global (TFG) reports that corporate’s ability to collect, analyse and utilise data for shoring up global supply chain stability rests with digitising supply chains to shift away from traditional supply chain models. Traditional supply chain models are generally ill-equipped to manage the demands that contemporary production methods and consumer demand patterns place on supply chains because they are reactive and rely largely on manual processes and standalone systems.

“Digital supply chains are more adaptable to the demands of the present-day technology-driven and interconnected world. This is primarily because they rely on the use of technology to manage the physical supply chain (procurement of raw materials, logistics, and production of goods as well as the financial supply chain” commented London Institute of Banking and Finance Trade Finance Consultant Olumuyiwa Esan.

“The use of AI machine learning and Internet of Things technologies has enhanced resilience in supply chains. Through predictive and prescriptive analysis of electronic data, these technologies have improved the forecasting and monitoring of consumer demand, inventory, supplier performance, and availability of raw materials thereby enhancing the accuracy of decision making thus contributing to the reduction of costs.”