International trade supply chain inefficiencies cost global traders trillions of dollars, Dan Weinberger, CEO of Morpheus.network, told guests of Mexico Business Review’s Networking Cocktail in Torre Punta Reforma’s Sky Garden on Wednesday. Morpheus.network is a Software-as-a-Service middleware platform that provides blockchain-based solutions to optimize global trade.
According to Weinberger, global trade is a US$15 trillion industry, but its inefficiencies are costing global traders trillions of dollars. For Weinberger, inefficiencies range from blind spots in the supply chain, to human errors and lack of frictionless payments in many occasions. “According to IBM, there are up to 40 points of contact in the supply chain susceptible of human error from exporters and importers,” said Weinberger. “The problem with blind spots is that they lead to many other issues in the supply chain.”
According to Weinberger, other inefficiencies in the supply chain include customs documentation, the handling of funds and fees and trust issues with partners around the world. This does not mean that global trade should continue functioning under these inefficiencies, he says. “Solutions as digitalization of documentation, integrating all service providers in the supply chain, automating workflows and generating frictionless payments could go a long way into reducing these inefficiencies,” he said.
Optimizing global trade and reducing inefficiencies is the goal of Morpheus.network, a platform that connects all these different technologies in the supply chain. According to Weinberger, the platform is uniquely digital and cryptographically secure, given that blockchain security is higher than what the banking industry can offer. The benefit of blockchain is not only its worldwide safety but also universal visibility.
Complementing Weinberger, Javier Dolcet, Head of Operations of Mercado Libre Mexico, agreed that track and trace is one of the most important challenges the logistics industry has today. “Having real-time information available is the real challenge,” he said.
However, for Dolcet, blockchain would allow for larger information integration providing the necessary visibility. “In Mexico, one of the largest challenges is related to efficiency and transport quality, as well as the speed at which you are able to inform your client the status of their order,” he said. “It is pointless to offer next-day delivery if you are providing information on the status of the order with delays.”
For Mercado Libre, Mexico is the third-largest country in terms of growth, just after Australia and Turkey. The Mexican e-commerce market has 5 million users and generates US$7.5 billion in retail alone. “It is a region with great potential, that is growing at accelerated growth rates,” Dolcet concluded.