UK trading practises with the EU
Following Brexit, the UK chartered a trade agreement in partnership with the EU, dictating rules and regulations to ensure fair trade for all parties involved. The UK government states that in 2021, UK exports to the EU were worth £267 billion. Clearly, trading with EU countries is a vital part of the UK’s economy.
In this article, we’ll be discussing some ideas on using digital technology when trading with European partners, including managing purchase orders using digital means and cloud computing for standard processes.
Technology to aid EU trade
The length of the supply chain is increasing, and managing it is harder and harder as more links are formed. Fluctuations and the volatility of the market, due to a variety of factors, mean that there is an increased demand for optimisation and better management.
Technology has the power to impact trade for the better. Cross-border trade between the UK and EU can be made even more inclusive and efficient for all businesses worldwide.
AI in supply chains
Increasingly, small businesses have started adopting AI-based solutions into their trading strategy, which means their supply chain management gets an upgrade. Demand forecasting models predict the amount of demand for a product there may be, addressing stock inventory issues by only purchasing and keeping a certain number of products onsite.
End-to-end transparency, provided by companies like Shipup, allows you to track and manage shipments and follow the entire process from one end to the other. It removes the need for complicated spreadsheets and waiting for updates from other people, making the process faster.
Dynamic planning optimisation allows a company to plan the best course for their trading, breaking down the process into separate moving parts in order to check each one separately, and is good for reducing waste. MIXMOVE is a cloud-based software, based on providing the best customer experience and solving logistics issues – including making journeys more visible and combining systems with ease.
Automation allows a company to have rapid responses to market fluctuations and allows for a lot more flexibility when it comes to making decisions, as biases and human error are ruled out completely. Meta Trader 4 is used for stock market trading automation.
Blockchain
Using the blockchain, i.e. an interconnected ledger of linked records to manage a supply chain, has many advantages when it comes to documenting shipment or transaction records. These can include information on date and location, price, quality and the certification of goods.
The benefits of a blockchain-powered supply chain include added transparency, enhanced traceability, more compliance, a better reputation and reduced costs. Also, all members of the supply chain can access the same information remotely and securely. The blockchain also removes physical documentation like receipts, invoices, tax forms, contracts, and financial reports, making communication seamless.
Digital payments
When it comes to payment for completed trades, human intervention is often needed to verify information, slowing down payments by a considerable amount. Digital payments can have vastly faster processing times, and money can be transferred rapidly. Additionally, automation means that payments can be recorded, validated and updated with ease. In tandem with eCommerce platforms like Shopify, the whole purchasing process can be automated.
If you need to transfer money for trading between businesses, use Wise to make the process fast without costing you an arm and a leg. Similarly, Convera (previously Western Union Business Solutions) is the largest non-bank B2B cross-border payments company in the world.
Cloud computing
Specific supply chain cloud-based platforms, like those offered by IBM, mean that you can connect stakeholders – importers, transport carriers, exporters, insurance providers and anyone else – to improve communication and make sure all procedures are standard.
Lincoln Be Smarter
Want to learn more? The Lincoln Be Smarter programme offers grant funding and academic consultancy if your business is interested in adopting any digital technology. Get in touch today to digitalise your business.