The phenomenal evolution of telecommunications now makes cloud technology accessible everywhere. An apparel executive can now see whether they are at the sewing stage of a manufacturing cycle or at that the goods are already in transit and where it is in the world. Since supply chain and logistics analysts can now track in real time every step of a supply chain, informed decisions and forecasts for capacity management and contingency planning have become easier. All these lead to a streamlined industry.

1. CLOUDCOMPUTING
SupplyChain&LogisticsAnalysis
68 | FIBRE2FASHION SEPTEMBER 2015
A cloudy state
of thingsThe phenomenal evolution of telecommunications now makes cloud technology accessible everywhere.
An apparel executive can now see whether they are at the sewing stage of a manufacturing cycle or
at that the goods are already in transit and where it is in the world. Since supply chain and logistic
analysts of a brand can now track in real time every step of a supply chain, informed decisions and
forecasts for capacity management and contingency planning have become easier. All these lead to a
much streamlined industry.
SupplyChain&LogisticsAnalysis
68 | FIBRE2FASHION SEPTEMBER 2015

2. SEPTEMBER 2015 FIBRE2FASHION | 69
I
f there is any sector that has been totally
transformed – or is in the process of being
transformed – by cloud computing, it is
logistics and supply chain management.
In many ways, the cloud concept itself was
tailor-made for this industry because of its global
scope and involvement of stakeholders.
The cloud allows data from many sources to be
centrally collected, transformed, and presented in
dynamic dashboards. Therefore, by taking recourse to
the cloud, supply chain and logistic analysts can track
in real time every step of a supply chain. This results
in informed decisions and forecasts for capacity
management and contingency planning. Since cloud
platforms for logistics are far more dynamic and
responsive compared to earlier supply chain and
logistics tracking tools, the cloud has been a heaven-
sent gift for the logistics and supply chain industry.
It’s a given that supply chain finance benefits
both buyers and suppliers. But, the mechanism is
most effective when all three – buyer, supplier and
financial institution – are connected on a single
network that manages the complete transaction
lifecycle from purchase order, through shipment,
invoice and settlement of the invoice. That’s the
shape of things to come.
And, of course, this makes life easier for one
and all. Heidi Benko, vice president – Product
Management at GT Nexus, makes this easier
to understand. She says, “Capital is essential
to the health of any supply chain. When it dries
up, business comes to a halt. Linking all parties
together and inserting financial services based on
data visibility or the financial strength of the buyer
or, in this case the performance on the platform
makes it easier for funds to be delivered into the
transaction, more frequently and at lower rates.”
Therefore, connectivity also becomes the
foundation for collaboration beyond just financing. It
opens the door to supply planning and raw materials
management. It simplifies amendment processes. It
leads to work in process (WIP) tracking and factory
automation. Continues Benko, “All of these processes
– when linked together by an underlying platform –
allow data to become a competitive weapon for better
execution in the supply chain. Unlike other platforms,
finance providers are party to the transaction, having
full visibility to the transaction lifecycle and to supplier
performance history. This helps finance providers
mitigate risks, creating the ability to fund greater
volumes and at competitive rates. It enables finance
providers to offer programmes such as PO Financing
and to create innovative financing programmes that
are not available without a comprehensive supply
chain cloud platform and network like GT Nexus.”
Benko’s company, GT Nexus, is the developer
and operator of one of the world’s largest cloud
supply chain platform of its kind. It is virtually a
community of manufacturers, retailers, logistics
service providers, carriers, trading partners, and
banks working towards improving the pace, ease,
and flexibility of doing business globally.
The phenomenal evolution of
telecommunications now makes cloud technology
accessible everywhere. “An apparel executive can
now see whether they are at the sewing stage of
a manufacturing cycle or at that the goods are
already in transit and where it is in the world. This
type of transparency of real time information is
the key for correct decision-making as a funding
provider to companies as we now know what is
happening with the order or invoice that we are
funding,” points out Robert Lin, president and CEO
of Seabury TFX.

3. CLOUDCOMPUTING
SupplyChain&LogisticsAnalysis
70 | FIBRE2FASHION SEPTEMBER 2015
CLOUD
APPLICATION
PLATFORM
INFRASTRUCTURE
PRIVATE
PUBLIC
SERVER
CLIENTCOMMUNITY
ARCHITECTURE
SECURITY
HYBRID
CONTENT
DEVICE
MOBILE
TABLET
ENGINEERING
STORAGE
VIRTUALIZATION
SaaS
PaaS
IaaS
COMPUTING
PHONE
REMOTE
INTERCLOUD
SERVICE
SCALABILITY
DATA
RELIABILITY
COST
API
IDENTITY
NETWORK
MONITORING DATABASE
BROWSER
WEB
PROVIDER
CENTER
USER
SLA
ONLINE
UTILITY
Benko
outlines
how such
technology can
accelerate the pace
of data interpretation.
She says, “Suppliers work in an
automated environment. They can have a dashboard
view of orders and incoming payments. They can log in
once and view this data across multiple customers on the
platform. Buyers automate the PO and payment process.
But they also capture all transaction data and performance
history. This becomes valuable in instances where supplier
funding is delivered based on the performance data of the
supplier and buyer instead of credit.”
Such state-of-the-art technologies probably benefit
MSMEs the most. Benko explains why, “Traditional
hosted software can be difficult to deploy. Cloud-based
solutions, on the other hand, are simple. There’s no local
installation or implementation. A web browser with a
secure connection and security standards such as robust
encryption processes provide an easy but secure way for
smaller exporters to connect and transact.” The process is
as simple as that.
There are innumerable benefits than can accrue to
MSMEs. Businesses get paid faster; they know when and
how they will be paid; invoice processes are automated; and
purchase orders and amendment processes are automated,
and purchase order changes clearly highlighted. Besides,
the same purchase order data flows into tools for packing,
scanning and shipment-building. As a result, transactions
are cleaner or more compliant, resulting in faster approval
for payment and greater availability of financing. Moreover,
suppliers know exactly what needs to be completed for an
order, and when they will be paid.
This will be the future that no one can escape from. Says
Lin, “Eventually, all supply chains will need to be digitally
managed as business is simply moving too fast today for
manual paperwork to work effectively. The same is true of
funding
providers
servicing the
apparel industry.
If funding is not there at
the right place at the right time,
then that will delay the supply chain.”
Resistance to change, specifically to new technology
in this case, can therefore be an issue. Dastaquir Ismail,
vice president-Supplier Solutions at GT Nexus, has this to
say about the challenges, “Accepting new technologies is
always difficult as vendors are already set with their existing
systems. Change is never easy. The key to this is educating
suppliers continuously on the market changes and making
them aware that they need to be ahead of the game.
The best run and most efficient factories are the most
automated with new systems and procedures in place.”
Moreover, there is a need to sensitise the market.
Ismail continues, “The word “financing” has changed,
and it’s all about partnerships. We look deep into
customer requirements to determine if it’s short-term
or long-term funding needs, and then bring in relevant
financial partners. We educate our suppliers on modern
technology and proper supply chain processes. Our
platform visibility features gives a good dash board for
smarter decision making.”
Seabury TFX, a specialist in trade finance, is already
working with supply chains that have already invested into
digitalising their supply chains. Says Lin, “Our solution is
plug-and-play and easily implemented to be available to
users of multiple supply chain communities. We provide
funding that is competitive, and in most cases more readily
available for companies that can demonstrate strong
historical and ongoing performance.” Unlike other supply
chain finance providers, Seabury believes supply chain
finance is the providing of cash flow all along the different
points in a supply chain and not just after an invoice has
been approved by the buyer.