Sunbury, United Kingdom — December 15, 2008 — GXS™, a leading provider of business-to-business (B2B) e-commerce solutions, and SCC Swiss Commercial Capital today announced details of a new strategic alliance to jointly accelerate the development of the rapidly growing supply chain finance market. The two companies plan to cooperate on a number of levels to deliver innovative solutions to manufacturers seeking to gain visibility into their financial supply chains.
GXS’ knowledge as a leading provider of B2B e-commerce solutions combined with Swiss Commercial Capital’s expertise in structuring and managing complex cross-border, supply chain finance implementations is a compelling combination for customers seeking to mitigate risks and lower costs while simultaneously boosting sales and moving safely into new markets. GXS Trading Grid®, GXS’ global integration services platform, will provide electronic integration of Swiss Commercial Capital’s trade finance platform with enterprise resource planning (ERP) systems from major vendors and their customers to facilitate the exchange of purchase orders, invoices, transportation documents and cash flow data. By teaming with an expert in B2B integration, Swiss Commercial Capital will accelerate the availability of trade finance programs for major corporations and their distribution partners around the globe.
“In a challenging economic environment, businesses are looking for new and innovative ways to do more with less while still driving business growth without locking up capital assets,” said Kai Keong Ng, CIO for Swiss Commercial Capital. “Our trade finance technology will leverage the power of GXS Trading Grid to provide end-to-end transparency along the financial supply chain. This means that we will be able to match information such as purchase order, invoice and shipment data together with cash flows, providing automated reconciliation information and data feeds in real time. This, of course, facilitates the provision of working capital financing which was previously unachievable due to lack of pertinent information.”
Large, multinational investment-grade equipment manufacturers want to expand sales, particularly in the rapidly growing markets of Russia, the Middle East, Eastern Europe, Southeast Asia and Latin America. They want to find a way to both increase sales volume as well as control and minimise financial risk. Manufacturers rely on distributors to sell their products, but are unwilling to advance large amounts of credit or extend payment terms. As a result, insufficient credit limits and short payment terms mean restricted sales for the manufacturers and their distribution channels. Swiss Commercial Capital can bridge that gap with a fully integrated financing solution which provides credit risk coverage on receivables at date of issue as well as early payment to the manufacturer and extended terms to their respective buyers.
The GXS-Swiss Commercial Capital partnership provides an integrated route to removing inefficiencies within both the physical and financial supply chains. Investment-grade manufacturers can offer their clients extended payment terms enabling them to align their growing working capital requirement with actual cash flows.
“The supply chain finance offerings of financial institutions are typically limited to supplier-facing post-shipment financing. While these programs reduce cost and risk in the supply chain, they do not enable growth or market expansion,” said Rob Minns, GXS director of strategic alliances for Europe, Middle East and Africa. “Swiss Commercial Capital’s innovative customer-facing, accounts receivable financing will enable manufacturers to continue rapid expansion into growth markets without extending Days Sales Outstanding or credit risk.”
Using GXS Trading Grid, financial institutions can gain visibility to open account transactions occurring in the supply chain. GXS Trading Grid is a global B2B integration-services platform linking major buyers and suppliers in the retail, automotive, high tech and industrial supply chains around the world. GXS Trading Grid integrates with corporate ERP systems such as those from SAP and Oracle to extract the purchase orders, transportation documents and commercial invoices necessary to support supply chain finance programs and transmits them to recipients around the globe.
With direct operations in 20 countries throughout the Americas, Europe and Asia-Pacific, GXS can provide client delivery support to connect corporations with their banking partners around the world, enabling them to optimise financial supply chain initiatives. Using GXS, financial institutions can exchange purchase orders, commercial invoices, payment instructions, account statements, procurement card transactions, letters of credit and post-export financing requests electronically. GXS supports a wide variety of B2B technologies including ISO 20022, BAI, SWIFT, ANSI X12, EDIFACT and SAP IDOC document standards. Additional information about GXS Solutions for Financial Institutions can be downloaded at www.gxs.co.uk/industries/financialServices/.
About Swiss Commercial Capital
Swiss Commercial Capital comprises a team of finance and industry experts with unrivaled experience in the structuring and execution of cross-border trade finance programs. Swiss Commercial Capital can assist global manufacturers and regional distributors alike in reducing risk, increasing liquidity and driving sales growth whilst lowering the overall economic cost along the supply chain.
Based in Zurich, Switzerland Swiss Commercial Capital is funded by a major AAA-rated Swiss bank and a private Swiss Investment Group. Swiss Commercial Capital can be found on the web at www.swisscocap.com.
GXS is a leading global provider of B2B e-commerce solutions that simplify and enhance business process integration and collabouration among trading partners. Organisations worldwide, including 75 percent of the Fortune 500, leverage the on-demand services on GXS Trading Grid® to extend supply chain networks, optimise product launches, automate warehouse receiving, manage electronic payments and gain supply chain visibility. GXS Managed Services, GXS’ B2B outsourcing solution, empowers customers with the expertise, technical infrastructure and program support to conduct B2B e-commerce with trading partners globally.
Based in Gaithersburg, Md., GXS has an extensive global network and has local offices in the Americas, Europe and Asia-Pacific regions. GXS can be found on the Web at www.gxs.co.uk.
For further information please contact:
Denise Oakley, Director, Marketing Programmes International GXS
Tel – +44 (0) 1932 776408 / +44 (0) 7768 537 481 Email: firstname.lastname@example.org