TradeXchange® is a collaborative platform that facilitates information exchange within the trade and logistics community. Find out how some SMEs have benefitted by using TradeXchange to level up to competition globally and become more efficient.
TradeXchange® lets trade and logistics sector SMEs exchange information and synchronise data securely.
The trade and logistics sector brings together a variety of businesses dealing in different products and/or providing a myriad of services. Traditionally, manufacturers, importers, exporters and distributors have stored and exchanged trade information using manual, paper-based processes. This data is rarely, if ever, updated over time as there is no common message standard across the various industries. Even when ordering or invoicing using electronic data exchange, companies experience inaccuracies as they conduct transactions based on past data that may not be synchronised with their trading partners. This has led to inefficiencies, errors and duplication of manual work among trading partners. In fact, the lack of a common data synchronisation system can cost the consumer goods industry alone US$40 billion annually, according to a 2002 report by A.T. Kearney.
In an effort to improve overall performance and productivity, the trading community has turned to infocomm to simplify the business-to-business (B2B) and business-to-government (B2G) trade documentation and communication processes. The key to being a winning part of this evolution is for businesses in the trading community to adopt a collaborative approach, using a common electronic platform to foster better communication, speedier and more accurate information flow and greater accessibility to stored data. Good trade data management forms the foundation for other value-creating collaboration between importers, exporters and their trading partners. The virtual integration of companies with their trading partners creates a stronger value chain among them and enables coordination across geographical boundaries, resulting in higher levels of productivity.
These days, trading businesses recognise the need to improve their workflow and operational efficiency and begin to demand system-to-system trade data synchronisation. To achieve this on their own, huge infocomm resources are required to integrate with multiple trading partners in their supply chain. Initial hardware, software and infrastructure investments, as well as on-going maintenance of multiple set-ups and interfaces can be daunting to these businesses. Technology adoption is a major challenge which can be difficult to overcome especially for the smaller trading partners who do not have the basic infocomm infrastructure and know-how to interface.
TradeXchange® was set up and launched in October 2007. CrimsonLogic Pte Ltd worked together with government agencies, including Singapore Customs, Economic Development Board and the Infocomm Development Authority of Singapore, to develop, operate, maintain and drive the adoption of TradeXchange. TradeXchange® is primed as a neutral and secured trading platform that facilitates the exchange of information within the trade and logistics community. Manufacturers, importers, exporters and distributors can now collaborate seamlessly with their trading partners through an electronic trade platform. Businesses can connect to their trading partners electronically to securely exchange trade documents speedily and affordably via TradeXchange®.
Smaller businesses, be they manufacturers, importers, exporters, distributors, freight forwarders, transport providers, etc. can now be a part of this collaborative platform which allows them to level up to competition globally and be more efficient and capable. They can now link up to or even compete on par with larger companies as TradeXchange® offers them a quick shortcut to the infocomm infrastructure and services they require to offer better service to their customers. With usage-based service costs, businesses pay for what they use, instead of developing an infocomm system to cater for maximum requirements into the future.
"TradeXchange® allows us to reuse the data submitted by our clients for trade declarations to pre-fill the forms for marine cargo insurance. With the time saved from the preparation and submission of marine cargo insurance, we can focus on our key strength of offering innovative insurance solutions to our clients," said Low Weng Seng, IT Manager of First Capital Insurance Limited.
In another example, the suppliers to Beyonics, a manufacturer, used to wait for purchase orders to arrive through fax and be dispatched to the right customer before action could be taken. This manual process was time consuming and could result in purchase orders being misplaced. Now with a new email application made available through TradeXchange®, suppliers can receive purchase orders directly via emails and respond immediately. This greatly improves coordination and cut down on errors.
In the supply chain process, there could be multiple data creation points made by various trading partners. Businesses in the trading community are mindful of the need to obtain reliable and accurate data from a single source. Today, through TradeXchange®, the consolidated trade declaration data is readily available online. Authorised users can reuse the TradeNet® permit declaration data to reconcile with supplier invoices, packing list and GST transactions, generate trade insurance certificates and for downstream operations like inventory control, accounting, procurement and auditing.
The following is an example of how TradeXchange® can help businesses in the trading community streamline trade documentation processes, improve operational efficiencies and provide the much needed timely and accurate information in business decision making:
- Review all permits submitted by multiple logistic partners and authorised agents;
- Generate Cargo Clearance Permit (CCP) Matching Report that includes a full list of the CCPs filed by all authorised freight forwarders, matched against supplier's invoices;
- Generate "Exception" reports that highlight the list of CCPs and invoices that do not match; and
- Update the Enterprise Resource Planning system with permit data electronically.
- This article is contributed by CrimsonLogic Pte Ltd.
- This article first appeared in The Business Times on 21 October 2008 and information is correct at the time of publication.
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