A striking parallel can be drawn with the 28.5 billion paper documents generated in global trade each year, towering in a stack 322 times the height of Mount Everest.
Mount Everest, the epitome of insurmountable challenges, was conquered, proving that no peak is too high with determination and innovation. In the realm of global trade, the digital transformation mirrors this feat. Once perceived as an overwhelming task, the shift from paper to digital is not just achievable but very much within our grasp. At LogChain, we’re committed to leading this transformative journey, ensuring that every step taken is a stride towards a more efficient, sustainable future in trade.
Digitalisation in trade is no longer a distant dream but a tangible reality. It’s about turning mountains of paperwork into streamlined, efficient digital processes. With the advent of technologies like blockchain, AI, and IoT, the digitalisation of trade is not just about reducing paper but about creating a more connected, transparent, and efficient global trading ecosystem.
November 2023: The International Chamber of Commerce (ICC) has released a significant report, “Seizing the Moment” highlighting the transformative impact of digitalisation across all sectors of global trade. This comprehensive report underscores that digitalisation is not sector-specific but is a universal catalyst for anyone involved in making, moving, or consuming goods. LogChain, featured in the report, stands as a leading example of this transformation.
The ICC report meticulously details the vast, untapped potential of digitalisation in trade, presenting it as a solution that transcends industry boundaries. It emphasises that the benefits of digital trade are not confined to specific sectors but are accessible to all players in the global trade arena, from small start-ups to large multinational corporations.
The report provides tangible evidence of commercial advantages from digital paperless trade transactions, which companies across various industries can harness. By adopting digital solutions, businesses can enhance liquidity, mitigate risks, and reduce costs, thereby achieving improved profitability and broader market access. The report targets a wide range of decision-makers, including corporate treasuries, strategy teams, and policymakers, urging a collective shift towards digitalisation.
The ICC report highlights that these efforts are not sector specific and a number of great case studies have been highlighted by the ICC & C4DTI
Some of the benefits included;
- 100% Elimination of paperwork
- 8 x Reduction in data footprint
- 15-20% Reduction in costs
- 80% Reduction in border waiting times
- 15% increase in on-time deliveries
LogChain Case Study:
LogChain’s case study within the report serves as a stellar example of the benefits and scalability of digital trade solutions. Demonstrating significant efficiency improvements and cost reductions, LogChain epitomises the universal applicability of digital solutions in trade, regardless of the industry. The world’s first ever fully digitalised movement of goods removed all paperwork from the shipment of highly engineered equipment from the UK to Singapore in September 2023
The Future of Trade:
Envisioning a future where paper is replaced by data, the report predicts a significant simplification of trade processes. Digitalisation will enable faster financial transactions, standardised data formats, and seamless integration of sustainability data, providing transparency and efficiency in the trade of goods.
Legal and Economic Implications:
Highlighting recent legal advancements, particularly the Electronic Trade Documents Act (ETDA), the report marks a new era in trade digitalisation. This legal framework paves the way for digital transactions to be recognised globally, affecting key documents like bills of lading and marine insurance policies. Economically, digitalisation promises substantial benefits, including a significant reduction in trade transaction costs, increased efficiency for SMEs, and impressive trade growth across various regions.
Business Benefits for All:
The report details the myriad benefits of digital trade for businesses across sectors. These include enhanced liquidity, lower interest rates, reduced fraud risk, and improved supply chain transparency. Digitalisation offers a holistic approach to improving business efficiency, compliance, and sustainability.
Link to the full report Seizing the Moment