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Over 70 firms to help enhance supply chain efficiency via Singapore's trade data sharing platform

Nurdianah Md Nur
Nurdianah Md Nur • 3 min read
Over 70 firms to help enhance supply chain efficiency via Singapore's trade data sharing platform
Photo: Screenshot from SGTraDex's webpage
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More than 70 firms have onboarded the Singapore Trade Data Exchange (SGTraDex) to help tackle supply chain inefficiencies.

The participants include DBS Bank, OCBC Bank, Standard Chartered Bank, UOB, commodity trader Trafigura, PSA, Jurong Port, Pacific International Lines (PIL), Ocean Network Express (ONE), Advario (a carve-out of Oiltanking), Jurong Port Universal Terminal and energy companies ExxonMobil Asia Pacific and Chevron.

SGTraDex is a common data infrastructure for sharing regulatory, logistics, and trade financing data. It is expected to unlock more than $100 million of value for existing participants from three initial use cases by 2026. This will come through cost savings from improved efficiency and productivity, optimal use of assets, faster access to financing, and other value-creating benefits.

During SGTraDex’s pilot phase last year, its initial use cases were: strengthening the financing integrity of trade flows, enhancing end-to-end visibility of container logistics flows, and digitalising the bunkering or ship fuel supply industry.

For example, SGTraDex enables the exchange of data between shipping lines, hauliers, and port operators, which helps improve planning, increase asset utilisation, and boost productivity.

To further help enhance supply chain efficiency, SGTraDex will be working with partners on three new use cases in the coming months. They will look into green and sustainable trade financing, reducing demurrage costs, and increasing transparency in supplies and spare parts in the maritime industry.

See also: Majority of Singaporean firms hit by ransomware sought law enforcement for help: survey

DBS completes first live transaction on SGTraDex

DBS completed its first live transaction on SGTraDex today with leading bunker player Kenoil Marine Services, in collaboration with mass flow meter data logger service provider Brightree. It was done by way of an electronic bunker delivery note.

By digitalising the bunker delivery note, DBS, Kenoil, and its counterparties can ascertain the trade data at the source to validate the transaction details in a timely manner.

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The move gives bunker players faster access to working capital and enhances their cash flow management. It also provides a trusted and secure environment for banks and participants in the ecosystem.

Sriram Muthukrishnan, group head of Product Management of Global Transaction Services at DBS, says: “Access to secure, trusted, and real-time data will support the long-term growth of trade and trade finance. With the digitalisation of the bunker delivery note, financing and payment for the underlying trade can be completed efficiently and on a near immediate basis.

“Furthermore, the risk of fraudulent manipulation is mitigated as banks and fellow industry partners are now able to ascertain the trade data at source. This helps provide greater transparency and comfort regarding the genuineness of trade.

“We look forward to partnering SGTraDex to support more businesses to digitalise their workflows to enhance supply chain efficiency and transparency, and reinforce Singapore’s position as a global trade hub.”

Antoine Cadoux, Chief Executive Officer, SGTraDex, adds: “[DBS and Kenoil] have been instrumental in helping us develop a use case for the bunkering sector, and we hope the benefits they have achieved and continue to enjoy will encourage other ecosystem partners to come onboard.

“SGTraDex offers a range of value to all our participants, and small and medium-sized enterprises, in particular, will be able to digitalise their operations at a lower cost by leveraging our open, interoperable and secure infrastructure.”

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