German banking group Commerzbank and IT and digital transformation services provider T-Systems have announced a cooperation agreement to develop a solution for fully automated supply chains with integrated financial services.
The parties will deploy technologies including artificial intelligence (AI), the Internet of Things (IoT), 5G campus networks, cloud, sensor technology, and blockchain/distributed ledger technologies (DLT).
By utilising event-based automation of payment flows to reduce manual billing processes, the solution will serve as the basis for further networked financial services.
Logistics company Nagel-Group will serve as a pilot customer for the combined solution, which is expected to be rolled out in the market by the end of this year.
The cooperation agreement for the automated finance solution follows the letter of intent signed by both parties last July.
Commerzbank chief operating officer Jörg Oliveri del Castillo-Schulz said: “Supply chains are changing rapidly due to digital connectivity and integrated financial solutions.
“As part of our cooperation with T-Systems, we are developing scalable solutions so that our customers can make their complex supply chains more efficient, resilient and productive.”
The automated finance solution is expected to help suppliers, manufacturers, and logistics firms in the settlement and financing of their flows of goods.
Orders and payments are triggered by T-Systems’ IoT sensors and integration platform, which Commerzbank will subsequently execute fully automatically.
Eliminating manual invoicing and logistics procedures will significantly decrease errors and result in substantial cost savings for clients, said the parties.
Through the partnership, the parties intend to connect physical and financial flows within international value chains and digitalise and automate cost-intensive financial processes.
T-Systems chief commercial officer Urs Krämer said: “We are very pleased with the successful conclusion of our proof-of-value phase.
“We quickly learned how 5G, IoT, and the cloud can be orchestrated to make supply chains more efficient and resilient for our customers. We have an exciting partnership with Commerzbank that brings together the worlds of technology and finance.”
