Bonsai Development Corporation
powering trade finance information networks
Bonsai Development Corporation (BDC) is a California-based software company, founded in 2004 to develop and deploy a new generation of Trade Finance Information Networks.
We believe there are natural networks of organizations who need sophisticated ways of sharing information to improve existing business processes and enable better ones. The BDC on-demand Information Network for the TRADE FINANCE process is a natural fit for the tracking of documents and events across many organizations. As companies are driven to automate Supply Chain Finance, and new technologies such as web services and RFID become mainstream, the Trade Finance Information Network will transform the way in which trade is conducted.
The Business Problem. Globalization over the past decade has massively increased the volume and value of trade worldwide, and at the same time increased the inter-dependence between trading partners to maximize service and minimize working capital requirements.
A recent Aberdeen report found that 90% of companies surveyed viewed their global supply chain technology as inadequate for today's needs. Furthermore, the rapid change in trading patterns should have led to a revolution in financial services to serve this dynamic market, but this has not happened: the highly automated supply chain does not interact effectively with traditional Trade Finance instruments should as Letters of Credit. With most other corporate functions now automated through package technology (MRP, ERP, CRM, eProcurement, etc), Supply Chain Finance represents the last bastion of manual processing in many companies.
The obvious way to improve this situation is for banks to adopt a holistic OPEN ACCOUNT MANAGEMENT model in which transactions and supporting documents are made visible to all players in the Supply Chain Finance process. With visibility comes the ability to integrate traditional silo functions such as operations and treasury, and offer predictable cross-company processes for smoother operations. We call this Transactional Trade Finance, where every document in the supply chain can be connected to a financing event.
In the short term, Open Account Management enables existing demands to be met in a cost-efficient and timely manner: improving visibility to cross-company documents and reconciliation of multi-organizational processes. In the long term, such systems will support the development of new and revolutionary processes. With increased visibility to business documents, reconciliation functions, and RFID-enabled non-repudiatable events (shipments, embarkation, etc), trade flows will become increasingly securitized. This in turn will lead to a new generation of Asset-Based lending strategies and products for banks. BDC supports such short-and long term opportunities through three main capabilities:
BDC has developed the on-demand Information Network architecture to support the needs of large-scale aggregation and distribution of information arising from business documents (orders, invoices) and physical events (inspections, certification). We have also created the BDC Trade Finance application to make use of this infrastructure, as well as other prototype applications and pilots in additional industries.
Our Trade Finance solution is designed to be run as a service, rather than deployed as enterprise software. This makes us uniquely suited to partnerships with Financial Insititutions and other organizations such as trading groups. By aggregating and matching business documents across multiple companies, we provide secure and reliable visibility to trade transactions to multiple interested parties. This in turn enables:
The value we bring to our customers is the ability to share relevant, immediate information about business interactions and events across a range of companies on an on-demand basis. More information regarding BDC Trade Finance Information Network, as well as our Healthcare, Retail and Supply Chain prototypes can be found in the following areas:
BDC is unique in our focus on the on-demand Trade Finance Information Network. Our innovative approach is valuable to companies seeking new ways to realize financial and strategic benefits through improved visibility and reconciliation of Supply Chain Finance information. We encourage customers to think beyond their tactical deployments and look to the value of the Information Network that can be created, and we can quickly visualize the benefits through deployment of our technology.