Chinsay’s CEO Colin Hayward was quoted in The Global Treasurer’s recent article covering the commodity industry’s first fully integrated paperless trade between Rio Tinto and Cargill, which was facilitated on Chinsay’s Intelligent Contract Platform.
In the article, Colin elaborates on the significance of this trade and why it is an important step for the industry.
“A single trade within the iron ore industry, or any other commodity supply chain, requires the creation and passage of information between many stakeholders both internally and externally. This information must be reviewed, approved and agreed by functional experts (commercial, credit, risk, operations, finance, etc) and accepted by trading counterparts.
Currently, even though much of the documentation is in digital form, the data contained within those documents is not usable beyond a simple reference source and has to be rekeyed into other operational systems and processes. This takes time, is prone to error and is expensive to scale.
Through digitalisation, Chinsay is making that data available so it can be consumed by other processes and systems without rekeying, i.e., integrated. Some of the immediate benefits is to reduce errors and the time complete trading processes. The same data can also be used to provide greater transparency into an organisation’s operations allowing continual refinement and improvement of processes,
The challenge is focusing on the right process. In digitalising the contracting process, which sits at the beginning of the trade lifecycle, we are making sure the data is richly typed and strongly structured. Having done this, building a network of companies and users who collaborate on the platform is key.
This takes time and patience. So, it’ll take time to become commonplace, but we are seeing increasing interest and momentum is starting to build,”
The article appeared first on The Global Treasurer on 20 August 2019.
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