Glencore has joined an initiative led by the world’s leading agri-shippers to to digitise shipping transactions. Launched last October, the group now consists of Archer Daniels Midland (ADM), Bunge, Cargill, COFCO, Louis Dreyfus as well as Glencore. Its aim is to make a digital platform to smooth supply chains.
“We’ve been interested in the initiative from the very early days and we’re excited now to join as a full partner,” said Glencore Agriculture Limited CEO David Mattiske. “The digital platform this group intends to develop will leverage the newest technologies and has the potential to revolutionise our industry, making contract execution processes more efficient, more accurate and more transparent. These advances are necessary for our industry to continue serving our critical global role efficiently and effectively, and the benefits will be felt by companies of all sizes along the post-trade value chain.”
The initiative is initially looking at new technologies – such as blockchain and artificial intelligence – to create digital solutions to automate grain and oilseed post-trade execution processes, reducing costs needed to move agricultural and food products around the globe. The group is projecting launch of the new platform in the second half of 2020 subject to regulatory approval.
“This effort is growing, and the reason is clear: we’re offering clear and tangible benefits for the industry, created by the industry,” the initiative participants said in a joint statement. “Customers, partners and other industry participants appreciate both the potential that our platform offers, and the fact that we are partnering with them early in the process to ensure the entire industry’s needs are met.”
A pilot covering international bulk shipments of soybeans from Brazil to China will be conducted soon, the group said today.