Frictionless Trade

6 September

Frictionless Trade

Defining the future of the supply chain experience globally will be the culmination of a polyglot of technologies intersecting within a Distributed Ledger Technology (DLT) environment. This new digital infrastructure will allow the various transportation industries to meet consumer demands, over the transparency and visibility of associated goods travelling within those supply chains.

The respective transportation industries will benefit through a new secure medium of digital communication, which creates interoperability between multiple legacy systems. Interoperability of these legacy systems will create cost savings, through the automation of data between supply chain actors, directly reducing the associated administration costs of administrating these supply chains. The intersection of old world business models and trusted new world technologies will spawn a new digital marketplace, creating new revenue streams and business models that will transform the landscape of the transportation industry as we know it today.

The benefits of improved global trade facilitation far exceed those available from further tariff reduction. Estimates suggest that an ambitious (but still incomplete) improvement in two key components of supply chain barriers, border administration and transport and communications infrastructure, with all countries raising their performance halfway to global best practice, would lead to an increase of approximately US$ 2.6 trillion (4.7%) in global GDP and US$ 1.6 trillion (14.5%) in global exports *Source WEF.

MTI has enabled Frictionless Trade.