Serai Limited, a digital B2B apparel sourcing platform of HSBC, has launched several solutions to help RMG manufacturers, suppliers and buyers on its platform identify, monitor and mitigate risks associated with trade.
Serai is a digital B2B platform that enables Bangladeshi apparel suppliers and manufacturers to connect with buyers and brands worldwide.
These insights can help companies monitor their counterparties and identify risks early on, potentially saving their business time and costs in the long run, said a press release.
Even before COVID-19, the apparel industry was faced with challenges - from the changing policies on trade tariffs, increasing pressure on supplier payment terms, and an increased demand for supply chain transparency with regards to sustainable materials and practices, Vivek Ramachandran, CEO of Serai said.
“COVID-19 just accelerated and amplified some of these challenges. Order cancellations, reduced order volumes, extended payment terms and shipping delays left many in the industry in a situation of financial uncertainty,” explained Vivek Ramachandran on the importance for companies in the apparel industry to have an effective risk management framework. According to a report from Better Buying, only 17 percent of suppliers could confirm they have some form of insurance that guarantees payment for orders in the event that customers default on their contractual obligations. Most suppliers (57.4 percent) do not have such insurance.