HSBC Introduces Digital Supply Chain Solution for Clothiers in Sri Lanka
Throughout its existence, HSBC has grown into one of the world’s biggest banks, and over the decades, it has built up a significant presence in Asia. In a new development, the bank announced that it is going to launch an online supply chain solution that aims at the clothiers in Sri Lanka.
Apparel exporters form one of the most important constituents of the country’s economy, and the platform, known as the supply chain financing platform, is going to help them in a key facet of their business.
It has emerged that the platform in question is going to allow the apparel exporters in the country to make payments earlier to their suppliers. Considering the entire chain by way of which the business works, early payments almost always results in a smoother operation for all parties. Suppliers who are paid earlier are also eager to make their supplies on time, and hence, the whole thing becomes far more efficient. Additionally, the platform from HSBC is also expected to reduce errors as well as costs for all the apparel exporters significantly.
It is a significant development and could have a profound effect on the industry in question. Ajay Sharma, Regional Head of Global Trade & Receivables Finance for Asia Pacific region at HSBC, spoke about the product. He said,
“By injecting liquidity into the supply chain, they can extend supplier network and enhance strategic supplier relationships.”
Another senior structured trade solutions manager of HSBC, Nikhil Dhar, stated,
“With this program, suppliers may effectively decrease ‘Days Sales Outstanding’ and enjoy additional working capital without leveraging bank credit lines. It also minimizes collection, cash management and insurance costs.”
It seems like a highly useful product, and it remains to see how it all works out.
Harold joined our team as a reporter while still studying, a job that suited him perfectly as he always prefers working on the stock analysis. He has a passion for new technologies, economics, finance, and is always keen to learn more about the ever-changing world of journalism. Harold also likes to explore new things in his free time.