Union Bank of the Philippines (UnionBank) has collaborated with XLOG, a logistics platform, to launch the country’s first blockchain-enabled supply chain financing embedded in a logistics platform.
The partnership enables those with a logistics business to have access to an end-to-end logistics technology for operational efficiency, real-time monitoring, online documentation, and flexible payment arrangements on blockchain.
“We are firm believers in how blockchain technology can bridge gaps in different industries. We have already seen it disrupt the financial industry. With this partnership, we hope to innovate the logistics business by integrating the financial supply chain platform with the already advanced logistics platform of XLOG,” said Henry Aguda, UnionBank Chief Technology and Operations Officer, Chief Transformation Officer and UBX Philippines Chairman.
Developed by Shiptek Solutions, XLOG is an innovative approach to logistics that does not only enable the industry to manage and monitor their transactions online, but also to leverage on the provenance of data that improves the processing of transactions between operations and finance. It directly connects shipping companies to shippers, customs brokers, truck owners and warehouse operators.
According to Shiptek’s president and CEO, Eugenio Ynion Jr by using the blockchain, Unionbank is giving stakeholders in the transaction visibility of the workflow and gain more credibility with the bank.
“We believe that digitizing the end-to-end logistics process is only the entry point. With the data, we are able to prepare businesses towards tokenization and artificial intelligence for a more cost-efficient logistics environment,” he added.
UnionBank FSC is the first financial supply blockchain in the Philippines. It provides buyers and sellers an efficient way to do business through digital document presentment, settlement, collections, and an instant community-based financing program.
With the integration of both technologies, shippers, freight forwarders and their service providers (eg. Shipping lines and truckers) can facilitate, monitor and complete their transactions in one platform. The availability of value-added financial services allows users of this platform to boost their cashflows.
Shippers and freight forwarders can now cover possible gaps in collection and payables with service providers through financing. Shippers can also enjoy extended credit terms while allowing service providers to receive advanced payments through discounting.
For now, service providers can easily grow their businesses and close bigger deals by extending longer payment terms to potential customers. The partnership will also improve cashflow of the parties by enabling the early collection of receivables via financing.