modernizing global trade operations - covantis...minimum viable product (mvp) 7 9strong agreement on...
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Modernizing Global Trade Operations
WTO Public Forum «Trading Forward: Adapting to a Changing World»
October 2019
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The founding members
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Context behind our initiative
• Over the past 10 years key Ag. industry leaders have been promoting the use of e-BLs and electronic documents but with very limited success
• We need industry-wide efforts to succeed on such challenges and not mono-branded initiatives
• We are investigating ways to connect and transformthe agri industry by gradually moving from manual paper-based processes towards full digitalization for the benefit of all participants
• Broad participation from all parties can drive greater reliability, efficiency and transparency enable better service for customers and consumers
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We want to solve some well-known problems in the industry
Inefficient processesBulk shipment is still massively labor intensive andhighly manual with physical paperwork being courieredaround and often re-entered
Millions of emailsMore than 275 million emails are sent annually toprocess the estimated 11,000 shipments of graintransported on the ocean worldwide
Mountains of paperIf you were to print all the emails that are created eachyear to ship grains across oceans, they would be as tallas 3 Mt. Everest
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We want to modernize Agri bulk executionWe are committed to work together to build a collaborative network to significantly reduce operating risks and increase market efficiency for Agri bulk international trade flows
9 Low er Operat iona l R isk / Cost
9 End- to-End Rea l Time Vis ib i l i ty
9 More F lex ib le Workforce
9 Single source of Truth
9 Decreased Risk of Manual Er ror
9 Shor ter Wai t ing Times
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Future ecosystem of interconnected platforms
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A g r i c u l t u r a l
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We focus on post-trade execution
– 1 –Notices
(nomination, tender…)
– 2 –Documentary Instructions
– 3 –Appointment of 3rd Party Providers
– 4 –Drafts
Generations
– 5 –Original
Documents Issuance
Trade Negotiation
Contract Management
Invoicing Payment
Custom Clearance
Load and Discharge Logistics
Lay-Time LOIProcess
– 6 –Documents
Presentation
E-Docs
Min
imum
Via
ble
Prod
uct (
MVP
)
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9 Strong agreement on vision and value proposition9 Belief in “by the industry for the industry”9 Adoption is the real metric of success9 Users are keen to contribute and participate in the
platform build9 Focus on user-experience and seamless
connectivity
What we learned from the industry
We interviewed over 100 stakeholders from across the agriculture industry and beyond. We held various rounds of 4-day workshops with users in Geneva, Brazil, USA and China
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Some of our current focus areas
UTILITY MODEL CHARGING MECHANISM FAIR PRICING
The core of the platform will be accessible to the entire industry
at affordable prices to drive adoption and enable network
effects
We are exploring different options (subscription, volume…) to
ensure we can create a solution that will be linked to the true
usage of the platform
The price charged to use the platform will be derived from the efficiency gains that the user will
obtain by using the platform
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Assessment Phase 9
Development Phase
Go to market Phase
• Align on common pain-points faced and identification of potential solutions with associated value proposition
• Assess industry reactions to our proposal and refine functionalities and models
• Identify technology 3rd
party provider who will build the digital platform
• Conduct deep dive workshops with future platform users and integrate learnings
• Start designing and developing MVP use-cases with technology provider
• Define 12 months go-live strategy and prepare accordingly
• Go full-speed on design and development of platform
• Start onboarding market participants
• Establish independent legal entity to ensure full security / privacy of IP and data on platform
• Go-live by Q2 2020
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We welcome your questions
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Thank You !!!
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