"There is a lack of real-time validated information for trade participants to make the right decision at the right time."
A major limiting factor in the global economy is the risk – both perceived and real – of conducting business across and within borders. This stems from a lack of an effective data collection and exchange mechanism: one that can deliver dynamically and securely high-quality historical, current and forecasted information across global value chains for all trade participants, including banks and insurers, so that they can make informed, expedient decisions.
Unfortunately, the current information environment in the B2B marketplace is fragmented, inefficient, and delivers mostly low-quality data provided generally only by a single source – so-called ‘Non-Validated Data’ (NVD). This limits the ability of trade participants to accomplish key objectives effectively, resulting in:
- Difficulty in reaching potential trading partners and penetrating markets
- Limited access to trade finance
- Inability to obtain trade insurance
- Unreliability of logistics in supply chains
- Low economic integration
"The Multi-Dimensional Digital Economy Application System will generate 'Ultimate Data Quality' to de-risk trade and enable new global market expansion."
In order to de-risk doing business, a system is required in which data are validated and continually updated through multiple sources in the same pipeline – yielding high-end ‘Ultimate Data Quality’ (UDQ). This raises the quality of data available to buyers and sellers, as well as insurance, finance, logistics companies, and governments. Consequent reduced risk as well as increased transparency and efficiency translates in turn into lower operational costs, expanded markets, and increased sales volume, as well as improved access to finance and insurance. This leads to strengthened economic growth that benefits citizens in high-, mid-, and low-income countries alike.
The main foundation of UDQ resides only within logistics. As shipments flow through several of the industry clusters in the economy, shipment data are continually updated and validated from multiple sources in the same trade-lane pipeline. When cross-checked against historic data, as well as current activity data shared throughout the pipeline, errors or anomalies will be quickly identified and addressed in near real-time.
While logistics is the source for the UDQ, it is also one of the four pillars of global trade: Commerce, Finance, Insurance, and Logistics industries. Enhancing the efficiency of the logistics industry by horizontally integrating and automating the processes across all the industry clusters in the global value chains will enable peak logistics performance. At the same time, this integration generates the UDQ needed to boost the performance of the other three pillars of trade, thereby reaching their full potential to empower the digital economy.
"The MDDEAS tools provide the required transparency and efficiency to de-risk doing business, reduce costs, increase access to finance and insurance and better reach new markets to increase trade."
The MDDEAS delivers the UDQ, which is at the core of a real-time dynamic information environment, where actions are dynamically validated and continuously updated by multiple sources from around the world as the goods flow through the same trade pipeline. The benefits of such an environment include:
- Real-time, comprehensive visibility of shipments
- Facilitating informed decisions across all of the industries that are the pillars of trade
- Data is continuously validated from multiple sources in the same trade lane pipeline
- Information is cross-checked against historical data, as well as current activity data where errors or anomalies will be quickly identified and addressed in near real-time