Yesterday, international banking services provided Standard Chartered, announced a termed strategic agreement to introduce the B2B supply chain focused Infor Nexus network to the Bank’s clients as a means to facilitate digitizing the financial supply chain.
This announcement comes in the background of this week announcement that Koch Industries intends to exercise options to acquire all of Infor.
According to the Standard Chartered announcement, the banking institution:
“will refer clients to Infor and its Infor Nexus network, based on specific needs, enabling them to benefit from automated matching and digitised documentation and processes delivered on Infor’s network of 65,000 businesses around the world.”
The notions of a digital financial supply chain are directed at insuring that small and medium business suppliers can better automate required document matching processes, leveraging digital processes and workflows in order to speed-up trade financing payment processes and better improve working capital needs. Such efforts further involve overcoming the challenges for on-boarding new suppliers and ongoing service and support to suppliers without requiring the involvement of the anchor buyer.
Standard Chartered indicates that B2B digitization of the financial supply chain allows the bank to expand client relationships through digital transformation solutions that address sourcing and payables inefficiencies while enabling innovation and growth.
Added Background and Perspective
Our readers might recall that Infor Nexus is the rebranded name of the previous Cloud based GT Nexus B2B supply chain network platform that Infor acquired in 2015. Prior to the Infor acquisition, GT Nexus had merged with payments services technology platform provider TradeCard to augment the tracking of payment services.
The platform’s process support capabilities have been broadened into other areas beyond B2B transportation and logistics process support, directed at transforming other standard processes and commercial documents into digital workflows and processes. In our prior blog commentary reflecting on the Koch Industries acquisition of Infor, we specifically pointed to the notions of upside value presented by the Infor Nexus platform.
The leveraging of B2B supply chain or business networks applied to financial processes has been a quickly emerging area of late. As an example, in July of last year, B2B business network platform provider OpenText announced a joint digital financial services partnership with Mastercard directed at automotive industry supply networks. The aims of that partnership were to increase the speed, compliance and security for business information, payments and financing in the automotive supply chain, facilitate integrated payments, while allowing B2B business network participants the ability to access spot financing.
Readers may have also noticed that B2B platform providers focused on support both indirect and direct material procurement have equally been broadening areas of financial settlement or trade financing support.
These are all indications of ongoing B2B platform convergence into broader supply network process support needs and the notions of supply chain digital transformation.
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