World trade is predicted to grow by 75% in the next 15 years, with merchandise trade volumes set to climb to US$48 trillion by 2025, up from US$27.2 trillion today.
That at least is the view of the International Chamber of Commerce (ICC), which is concerned that new financial solutions will be needed to enable corporates to maintain a resilient supply chain.
Accordingly, the ICC Banking Commission is organising its first-ever ICC Supply Chain Financing Conference, to be held in Paris on 4 and 5 October 2012.
Innovations in working capital solutions are more vital in today’s economic climate than they have ever been before, the ICC said, with companies and suppliers under conflicting pressures to improve payment terms, reduce prices and improve cash flow.
“From today’s emerging markets, new international powerhouses will arise to further drive world trade growth,” said Andre Casterman, Conference Co-Chair, Head of Banking and Trade Solutions, SWIFT and Co-Chair of the ICC Bank Payment Obligation (BPO) Project.
To support such growth in a volatile economic climate, he explained, new supply chain finance rules are being established. BPO rules, for example, offer a new instrument that combines the benefits of the letter of credit with those of open account trade.
The conference will combine educational sessions on different supply chain finance techniques while drawing on case studies and examples of best practice. Topics will be divided between invoice-based and purchase order-based supply chain finance techniques.
More details are available on the ICC website.
