Corporate & Investment Bank

Trade & Supply Chain Services

J.P. Morgan is uniquely differentiated from other financial institutions in that it is the only financial institution that provides a unique combination of trade services and supply chain and logistics services.

J.P. Morgan's trade operations span more than 50 countries with regional processing hubs located in the Asia Pacific, United States and European regions. J.P. Morgan has a 200 year heritage in trade services and employs more than 1400 Trade and Logistics professionals around the world in support of clients.

Trade Services

J.P. Morgan's Trade Services involves the processing and/or financing of import and export activities in support of clients. The business can be broken down into 3 main categories:

  • Classic Trade – includes Stand-by Letters of Credit (LCs), Documentary Collections, LC Reimbursements, Import/Export Financing and Bank Guarantees
  • Structured Trade Finance – comprises mid/long-term financing for complex deals, Payables and/or Receivables financing, Transaction Risk Mitigation and Export Credit Agency (ECA) backed financing structures
  • Business Processing Outsourcing – as a partner of leading Financial Institutions who manage their own respective Trade franchises, J.P. Morgan is able to provide e-trade platforms and white-labeling solutions covering both import and export transactions

the key benefits of J.P. Morgan's Trade solutions include:

  • Mitigates foreign bank and country risk
  • Provides acceptable and secure payments
  • Complies with international trade rules
  • Improves working capital by reducing days sales outstanding and days payable outstanding
  • Increases efficiency of documentary and open account activity through trade workflow tools
  • Faster, improved relationship between buyers and sellers
  • Use of sophisticated online technologies for improved decision making

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Supply Chain & Logistics

J.P. Morgan's Supply Chain Management & Logistics Services compliments J.P. Morgan's capabilities in more traditional trade services. J.P. Morgan focuses on helping its client reduce the landed cost of goods and level of working capital by improving trade and logistics effectiveness and extracting additional value from supply chain operations.

J.P. Morgan's offering is comprised of three key services:

  • Logistics Consulting – includes distribution and fulfilment analysis, supply chain design, strategic sourcing, export/import compliance and value chain risk management with a focus in Australia on companies sourcing from China, Europe and the United States
  • Global Supply Chain Finance – end-to-end supply chain finance and payment solutions covering both buyer and supplier financing options. J.P. Morgan's unique offering which is already being used by more than 50 major corporations internationally supports both domestic and cross-border financing transactions for more than 25 countries

The key benefits of J.P. Morgan's Supply Chain solutions include:

  • Improved operational efficiency and cycle time optimisation
  • Reduced overall spend
  • Improved level of customer service
  • Online visibility for increased transparency and decision making
  • Reduced risk from improved governance and control

Below is a screenshot of J.P. Morgan's online Supply Chain Financing system. The system can be integrated with a client's own ERP system as well as J.P. Morgan's trade workflow systems thereby automating the processing of both trade documents and financing associated supplier or buyer related trade transactions.

 

Supply Chain Financing system

 

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