Presented by:  TradeCard July 2009 TradeCar d Connect - Transact - Profit
Agenda <ul><li>Welcome to TradeCard </li></ul><ul><li>Why are we doing this </li></ul><ul><li>Who is TradeCard and how doe...
Why are we doing this?
Why are we doing this? <ul><li>As cross border trading continues to grow, it’s imperative that we adopt processes to allow...
Disconnection from your Trading Partners Creates hiccups in the trading process C HALLENGES OF A   M ANUAL,  D ISCONNECTED...
Common Platform to move information and money enables collaboration and visibility  Transportation Suppliers Advises goods...
Who is TradeCard and how does it work?
Brands - Do you recognize?
Who is TradeCard <ul><li>TradeCard Inc.  is a $1 Billion privately-held technology and services firm specializing in the e...
TradeCard Platform <ul><li>Online Transaction Management and Settlement </li></ul><ul><li>TradeCard’s secure web based pla...
TradeCard Value Proposition <ul><ul><li>Electronic delivery of Purchase Orders and Purchase Order amendments  . </li></ul>...
Typical TradeCard FST Workflow –  Example 1 Purchase Order Created, Approved  and Sent  to TradeCard 1 TradeCard initiates...
Typical TradeCard FST Workflow –  Example 2 Electronic Compliance: Compares Payment with Receipt and manages the Adjustmen...
Factory Supplier Enablement Process Flow Start Producing Goods Supplier Enablement 3 Create & Print HU Labels 4 Create Pac...
Broadest and Deepest Collaboration and Visibility Financial Common View of Global Sourcing Supply Chain Business Intellige...
Realize the benefit of a next generation sourcing platform Improve  Gross Margin Improve Cash Flow & ROIC <ul><li>Straight...
What settlement options are being offered
Settlement Options <ul><li>Standard Settlement </li></ul><ul><ul><li>Buyer sends up to date Purchase Order information to ...
Buyer Funded Early Payment Program <ul><li>Buyer Funded Early Payment Program   </li></ul><ul><ul><li>Buyer approves the p...
Optional Payment Protection <ul><li>Coface  is the leading worldwide export credit insurance provider </li></ul><ul><ul><l...
Example : Settlement Fees Open Account Early Payment Transaction Fee (Per Invoice) 0.25% ($45 minimum) If invoice amount <...
Example : Settlement Fees <ul><ul><li>If $25,000 Invoice is presented to TradeCard  </li></ul></ul><ul><ul><li>Standard Se...
Timing of Payment on TradeCard <ul><li>Funds are moved by JP Morgan Chase, one of the leading financial services firms in ...
Summary of TradeCard benefits
Benefits all parties in the Supply Chain Creates True Cost Reduction, Not Cost Pushing Programs <ul><li>S ALES /  S ERVICE...
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General Training

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General Training

  1. 1. Presented by: TradeCard July 2009 TradeCar d Connect - Transact - Profit
  2. 2. Agenda <ul><li>Welcome to TradeCard </li></ul><ul><li>Why are we doing this </li></ul><ul><li>Who is TradeCard and how does it work </li></ul><ul><li>What settlement options are being offered </li></ul><ul><li>Summary of TradeCard Benefits </li></ul><ul><li>Q & A </li></ul>
  3. 3. Why are we doing this?
  4. 4. Why are we doing this? <ul><li>As cross border trading continues to grow, it’s imperative that we adopt processes to allow trading partners to increase their volume of business without adding resources in operational areas. </li></ul><ul><li>In particular, we believe managing paper-based trading process (such as L/C) no longer best supports the evolving international supply chain strategy. </li></ul><ul><li>If an open and flexible platform is used, it will benefit all parties involved in trade business on increased visibility into transactions, decisions and documents associated with the procure-to-pay lifecycle. </li></ul><ul><li>Automating the financial supply chain and linking it to the physical supply chain will definitely lower transaction costs and optimize productivity. </li></ul>
  5. 5. Disconnection from your Trading Partners Creates hiccups in the trading process C HALLENGES OF A M ANUAL, D ISCONNECTED F INANCIAL S UPPLY C HAIN Fax PO Phone in amendment Invoiced for too many pieces What are my cash flow needs? How many items do we need to order? How are my credit lines being used? Fail inspection, unclear where breakdown in communication was; transaction may stall Have goods– do customer and supplier know? Don’t know how many items will arrive or when Where is my payment? Not apprised of amendment Sent too few pieces How do we optimize financing without visibility? <ul><li>Not sure of location of documents or goods </li></ul><ul><li>Orders and amendments often require faxes, e-mails and phone calls </li></ul><ul><li>Lack of visibility may lead to errors </li></ul><ul><li>Lack of information can lead to bad decisions </li></ul><ul><li>Difficult to forecast financial needs </li></ul><ul><li>Challenging to optimize financing opportunities </li></ul><ul><li>Discrepancies can remain unresolved, impeding a transaction </li></ul>Inspection Distribution Centers Financial Institution Stores Logistics Y OUR C OMPANY Manufacturing Transportation Suppliers
  6. 6. Common Platform to move information and money enables collaboration and visibility Transportation Suppliers Advises goods have been loaded on board Electronic compliance compares documents Customer and supplier agree on purchase order Notified that debit and credit should be made DISCREPANCY: Shipped too many items Automated Supply Chain Financing optimizes credit through the supply chain B ENEFITS OF A UTOMATING THE F INANCIAL S UPPLY C HAIN <ul><li>Transparency into status of transaction </li></ul><ul><li>Automated processes create efficiencies and eliminate errors </li></ul><ul><li>Immediate cost savings </li></ul><ul><li>Optimized financial and procurement decisions through access to information </li></ul><ul><li>Innovative financial programs </li></ul><ul><li>Shortened trade cycles </li></ul><ul><li>Rapid online discrepancy resolution </li></ul><ul><li>Improved trading partner relations </li></ul>Manufacturing Inspection Logistics Distribution Centers Financial Institution Stores Y OUR C OMPANY
  7. 7. Who is TradeCard and how does it work?
  8. 8. Brands - Do you recognize?
  9. 9. Who is TradeCard <ul><li>TradeCard Inc. is a $1 Billion privately-held technology and services firm specializing in the emerging Supply Chain (SC) market. </li></ul><ul><li>TradeCard is recognized as the leading web-based platform that enables the global supply chain to conduct trade transactions from purchase order to financial settlement. </li></ul><ul><li>More than more than 7,800 retailers, brands, manufacturers and service providers in 40+ countries to be on the TradeCard Platform today. </li></ul><ul><li>These customers enjoy access to a suite of innovative financial services offered by our partners JP Morgan Chase, Coface (largest provider of credit insurance), Barclays, NDB etc. </li></ul><ul><li>TradeCard holds a patent for its data compliance engine which enables payment decisions by comparing electronic documents. </li></ul><ul><li>Backed by Warburg Pincus , Mitsui & Co., Mitsubishi Corporation and the World Trade Centers Association, TradeCard is headquartered in New York with offices in Hong Kong, Taipei, Brussels, Colombo, Seoul and San Francisco. </li></ul><ul><li>TradeCard is sustaining double-digit growth every quarter. </li></ul>
  10. 10. TradeCard Platform <ul><li>Online Transaction Management and Settlement </li></ul><ul><li>TradeCard’s secure web based platform allows buyers and sellers to initiate, conduct and settle transactions without any delays. </li></ul><ul><li>By connecting buyers, sellers and banks, TradeCard’s patented technology automates and streamlines the transactions. </li></ul><ul><li>TradeCard’s customers have gained significant and measurable savings through lesser transactional costs, improved visibility and reporting of payments. </li></ul><ul><li>TradeCard enables a full suite of Financial Services that provide new options to a Supplier (including Pre-Export Financing, Early Payment & Payment Protection). </li></ul><ul><li>Purchase Order data is automatically applied to the Shipping Documents to improve data quality and minimize discrepancies. </li></ul>
  11. 11. TradeCard Value Proposition <ul><ul><li>Electronic delivery of Purchase Orders and Purchase Order amendments . </li></ul></ul><ul><ul><li>Simplified invoice creation: Information is pre-filled from Purchase Order data. TradeCard invoice format meets international customs standards. </li></ul></ul><ul><ul><li>Streamlined discrepancy negotiation and payment authorization through online collaboration and work flow management. </li></ul></ul><ul><ul><li>Online Cash Management tools to provide central access to information and opportunities to reduce Days Sales Outstanding (DSO) without need for a credit line. </li></ul></ul><ul><ul><li>Complete web-based visibility from Purchase Order through the payment process with automated e-mail notifications and thereby improve communication across all parties. </li></ul></ul><ul><ul><li>Letter of Credit expenses are avoided and total processing fees are reduced. </li></ul></ul><ul><ul><li>Access to a variety of financing options including early payment program from TradeCard financial partners. </li></ul></ul><ul><ul><li>TradeCard support and the connection to our financial partners for other financing options </li></ul></ul>
  12. 12. Typical TradeCard FST Workflow – Example 1 Purchase Order Created, Approved and Sent to TradeCard 1 TradeCard initiates the Settlement Process Purchase Order Notification Sent to Supplier. Supplier Reviews Purchase Order Columbia Sportswear notified of any discrepancies Columbia Sportswear can negotiate any discrepancies. Columbia Sportswear’s Account Debited Supplier’s Account Credited Supplier notified of any discrepancies Forwarder Liaison Office Liaison Office sends Statement of Review To TradeCard OPTIONAL SERVICES Assurance of Payment Early Payment Program* Payment Authorization Document is Approved, Payment is Scheduled* Compliance Runs, Payment Authorization Generated Supplier Buyer Create and Send Commercial Invoice Forwarder Cargo Receipt sent to TradeCard 7 8 6 4 5 3 2
  13. 13. Typical TradeCard FST Workflow – Example 2 Electronic Compliance: Compares Payment with Receipt and manages the Adjustments 13 Chargebacks/Deductions 14 Goods Receipt 12 Freight Forwarder SRP/ERP Supplier Buyer Create Commercial Invoice using Packing Manifest generated from ASN 7 Discrepancy Resolution; Payment Decision 10 Money Movement A/R Interface/Visibility A/P Interface/Visibility Shipment Tracking 8 Purchase Order Advised, Approved, and Stored 4 PO Registration & Amendments 3 Create/Revise Supply Plan 1 Supply Plan Negotiation 2 Create Labels & ASN 6 PO Change Requests, Follow Up & Production Milestones 5 Patented Electronic Compliance: Compares Procurement and Fulfillment Data/Documents 9 Determine Value Date; Schedule Funds Transfer 11
  14. 14. Factory Supplier Enablement Process Flow Start Producing Goods Supplier Enablement 3 Create & Print HU Labels 4 Create Packing Plan Print DIM Carton Labels Apply DIM Carton Labels Prepare Shipment for Ex-Factory Complete Shipment Prepares Invoice Buyer Factory Pack Finished Goods in Outer Cartons Apply Handling Unit (HU) Labels 5 6 7 9 10 11 12 15 ASN Sent 14a Scan Handling Unit Label 8 Create Purchase Order (ERP) (and Amendments) 1 Download Purchase Orders and Amendments 2 ASN Sent 13 Forwarder Shipment Updates 17b ASN Sent 14b Shipment Updates 17a Shipment Ex Factory 16
  15. 15. Broadest and Deepest Collaboration and Visibility Financial Common View of Global Sourcing Supply Chain Business Intelligence <ul><li>Trading Partner Spotlight </li></ul><ul><li>Benchmarking </li></ul><ul><li>Trendspotter </li></ul><ul><li>Planning Collaboration </li></ul><ul><li>Raw Materials Management </li></ul><ul><li>PO Collaboration </li></ul><ul><li>Purchase Order Management </li></ul><ul><li>E-invoicing </li></ul><ul><li>N-way matching </li></ul><ul><li>Chargebacks </li></ul><ul><li>Customs Invoice </li></ul><ul><li>First Sale </li></ul>On Demand Financial Services <ul><li>Invoice Discounting </li></ul><ul><li>Pre & Post Export Financing </li></ul><ul><li>Payment Protection </li></ul><ul><li>Settlement </li></ul><ul><li>Work-in-Progress </li></ul><ul><li>Shipment Status </li></ul><ul><li>Shipment Tracking </li></ul><ul><li>Packing Automation </li></ul><ul><li>Label Generation </li></ul><ul><li>ASN Creation </li></ul><ul><li>Ticket Ordering </li></ul><ul><li>10 + 2 Filing </li></ul>
  16. 16. Realize the benefit of a next generation sourcing platform Improve Gross Margin Improve Cash Flow & ROIC <ul><li>Straight-thru A/P Process </li></ul><ul><li>Deductions management </li></ul><ul><li>Eliminate Letters of Credit </li></ul><ul><li>Local Office Automation </li></ul><ul><li>Invoice Discounting </li></ul><ul><li>Direct Retail Shipments </li></ul><ul><li>First-Sale /Duty Optimization </li></ul><ul><li>Reduce Vendor Cost of Capital </li></ul><ul><li>Free Credit Lines </li></ul><ul><li>Increase DPO </li></ul><ul><li>Improve Return on Cash </li></ul><ul><li>Optimize Inventory </li></ul>Reduce Operating & Financial Costs TradeCard’s Extended Supply Chain Value Creation Simultaneously improve margin and lower capital utilization to increase ROIC
  17. 17. What settlement options are being offered
  18. 18. Settlement Options <ul><li>Standard Settlement </li></ul><ul><ul><li>Buyer sends up to date Purchase Order information to TradeCard </li></ul></ul><ul><ul><li>Supplier negotiates/confirms Purchase Order and submit Commercial Invoice on TradeCard </li></ul></ul><ul><ul><li>Logistics Service Provider confirms the Forwarder Cargo Receipt on TradeCard </li></ul></ul><ul><ul><li>Liaison Office/Buyer’s Agent confirms the Statement Of Review on TradeCard </li></ul></ul><ul><ul><li>TradeCard automatically checks for Documentary Compliance </li></ul></ul><ul><ul><li>Buyer completes the Payment Authorization Document on TradeCard </li></ul></ul><ul><ul><li>Buyer pays the Supplier (Pre-agreed payment terms) </li></ul></ul><ul><li>Settlement with Early Payment </li></ul><ul><ul><li>Same workflow as Standard Settlement </li></ul></ul><ul><ul><li>Buyer pays the supplier within 3 –6 days of TradeCard Documentary Compliance (Discrepant documents may require more time) </li></ul></ul><ul><li>Settlement with Credit Protection </li></ul><ul><ul><li>Same workflow and payment term as Standard Settlement </li></ul></ul><ul><ul><li>Supplier purchases Coface/CIT Protection </li></ul></ul>
  19. 19. Buyer Funded Early Payment Program <ul><li>Buyer Funded Early Payment Program </li></ul><ul><ul><li>Buyer approves the payment authorization within a few days of TradeCard Documentary Compliance </li></ul></ul><ul><ul><li>Columbia Discount Fee may be adjusted at the start of each quarter due to interest rate fluctuations </li></ul></ul><ul><li>Benefits to the Supplier </li></ul><ul><ul><li>A new source of operating cash flow </li></ul></ul><ul><ul><li>Quicker access to cash </li></ul></ul><ul><ul><li>Improves your cash forecasting </li></ul></ul><ul><ul><li>Improves your Balance Sheet </li></ul></ul><ul><ul><li>Reduces your dependence credit facilities </li></ul></ul>
  20. 20. Optional Payment Protection <ul><li>Coface is the leading worldwide export credit insurance provider </li></ul><ul><ul><li>Rated AA by Fitch IBCA and has 70,000 Clients in 73 Countries, 30+ million customers in the database </li></ul></ul><ul><ul><li>Quality Label and Rating service - world’s first receivables rating service on the web </li></ul></ul><ul><li>Coface assigns Buyer’s a credit limit for use with each supplier for a period of time </li></ul><ul><li>At the Supplier’s option, this coverage may be purchased at time of Invoice </li></ul><ul><li>100% protection, subject to TradeCard Documentary Compliance </li></ul><ul><li>Suppliers may also decline protection </li></ul>
  21. 21. Example : Settlement Fees Open Account Early Payment Transaction Fee (Per Invoice) 0.25% ($45 minimum) If invoice amount <USD500 TC flat fee of USD5. Between USD500 & USD2500 TC flat fee of USD10. 0.25% ($45 minimum) If invoice amount <USD500 TC flat fee of USD5. Between USD500 & USD2500 TC flat fee of USD10. Buyer’s Discount Fee N/A 4.25 % APR based on 360 days (Pls check with LO for updated rate) Money Movement Fee (Per wire transfer) $15 per money movement $15 per money movement Optional Credit Protection (Coface) 0.08% 0.08% Payment Term 30 days 3- 6 days after payment authorization
  22. 22. Example : Settlement Fees <ul><ul><li>If $25,000 Invoice is presented to TradeCard </li></ul></ul><ul><ul><li>Standard Settlement </li></ul></ul><ul><ul><ul><li>$62.50 + $15 = $77.50 </li></ul></ul></ul><ul><ul><li>Standard Settlement with Optional Credit Protection </li></ul></ul><ul><ul><ul><li>$62.50 + $15 + $20 = $97.50 </li></ul></ul></ul><ul><ul><li>Early Payment on day 5 (17 days early) </li></ul></ul><ul><ul><ul><li>$62.50 + $15 + $50.17 = $127.67 </li></ul></ul></ul><ul><ul><li>Early Payment on day 5 with Optional Credit Protection </li></ul></ul><ul><ul><ul><li>$62.50 + $15 + $20 + $50.17 = $147. 67 </li></ul></ul></ul>
  23. 23. Timing of Payment on TradeCard <ul><li>Funds are moved by JP Morgan Chase, one of the leading financial services firms in the world </li></ul><ul><li>Buyer payment flow on a TradeCard transaction </li></ul><ul><ul><li>Upon receipt of Commercial Invoice and Packing List from the supplier, TradeCard will identify discrepancies (none may be found). </li></ul></ul><ul><ul><li>Once Buyer has reviewed the discrepancy notice and compare it to their ASN records, they will approve the Payment Authorization document. Buyer will then issue an approval for TradeCard to effect payment. </li></ul></ul><ul><ul><li>TradeCard will then issue payment notification identifying the date that the funds will be debited and credited based upon the agreed terms of the transaction. </li></ul></ul><ul><ul><li>TradeCard provides visibility into the payment process with email notifications and on-line reports. </li></ul></ul>
  24. 24. Summary of TradeCard benefits
  25. 25. Benefits all parties in the Supply Chain Creates True Cost Reduction, Not Cost Pushing Programs <ul><li>S ALES / S ERVICE </li></ul><ul><li>Receive, acknowledge and digitally sign P.O.s </li></ul><ul><li>Collaborate with customers </li></ul><ul><li>Cost-effectively connect via the Internet </li></ul><ul><li>Stay current with latest amendments </li></ul><ul><li>P ROCUREMENT </li></ul><ul><li>Eliminate manual effort to send, track and control P.O.s and amendments worldwide </li></ul><ul><li>Collaborate with suppliers </li></ul><ul><li>Cost-effectively connect through the Internet </li></ul><ul><li>Create customized workflows and event management alerts </li></ul><ul><li>Early visibility to shipment data </li></ul><ul><li>A CCOUNTS P AYABLE </li></ul><ul><li>Receive standard electronic invoices </li></ul><ul><li>Reduce overall process cycles </li></ul><ul><li>Improve service to suppliers </li></ul><ul><li>Manage all trade related documents </li></ul><ul><li>Utilize sophisticated 3-way data matching </li></ul><ul><li>Automate discrepancy management </li></ul><ul><li>Create customized workflows by supplier </li></ul><ul><li>Automate payment decisioning </li></ul><ul><li>A CCOUNTS R ECEIVABLE </li></ul><ul><li>Create and deliver electronic invoices </li></ul><ul><li>Gain visibility into end-to-end process </li></ul><ul><li>Obtain cost-effective credit protection </li></ul><ul><li>Improve discrepancy management </li></ul><ul><li>F INANCE </li></ul><ul><li>Deploy Automatic Purchase Discount Programs </li></ul><ul><li>Manage all financial aspects of the transaction from a single platform </li></ul><ul><li>Extend payment terms </li></ul><ul><li>Gain visibility to improve cash forecasting </li></ul><ul><li>Extend or free-up credit capacity </li></ul><ul><li>Improve cash flow management </li></ul><ul><li>Reduce trade fees and expenses </li></ul><ul><li>F INANCE </li></ul><ul><li>Obtain attractive financing (at P.O. or Invoice) </li></ul><ul><li>Reduce DSO </li></ul><ul><li>Strengthen cash management </li></ul><ul><li>Gain improved visibility to transaction </li></ul><ul><li>Improve working capital management </li></ul><ul><li>Reduce trade-related fees and expenses </li></ul>S UPPLIERS C USTOMERS

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