[Date Prev] | [Thread Prev] | [Thread Next] | [Date Next] -- [Date Index] | [Thread Index] | [List Home]
Subject: File Transmission NewsArticles
Wall Street Journal Friday June 2004 A10 Electronic methods are replacing the paper-heavy method of settling payments by "letter of credit." Trade Card and UPS Capital are associating the physical flow of goods with financial settlement. An obvious gain is speeding the flow of cash to capital-starved industries. At the Development Bank of Singapore, ninety percent of its letter of credit are electronic, but shipping documents that are needed to support these are done by paper, such as bills of lading. The article has the following statistics for the conventional method of handling international trade documentation. a) Five percent of the volume of trade is spent just processing paperwork. b) A simple transaction costs $400.00 to process. c) Each transaction can take up to twenty-four forms. d) Half of all letter-of-credit transactions are rejected due to incorrect information. Computer World June 14 2004 Volume 38, No 24, page 1+ XML has not yet replaced EDI; EDI, an older form of ecommerce, is growing. Forrester estimated that EDI represents eighty or more percent of total business-to-business traffic and its growing by at least three percent per year. J. C. Penney is now seeing a monthly EDI volume of 5.5 million, a 17% increase in one year. Walmart stated said that "if there's a need" they will "do XML" but they don't see a migration away from EDI. Some firms are using "Applicability Statement 2 Protocol" to send transactions over the internet rather than using Value Added Networks. Walmart is starting this shift but only a few trade partners are set up to this. However, those that have shifted are seeing a reduction of costs of up to 70% over VAN.
[Date Prev] | [Thread Prev] | [Thread Next] | [Date Next] -- [Date Index] | [Thread Index] | [List Home]