- History of commerce.
Commerce refers to the exchange of goods and services on a substantial size. It has evolved significantly over time and will continue to change. The first major development in commerce was the use of money like gold, silver, and later fiat currencies and digital money as a standardised medium of exchange. Ever since the invention of digital money, commerce was revolutionised again when technology giants propelled the adoption of Electronic Commerce where people can now participate in trade through the Internet. Widening the reach even further was the global adoption of smart phones which led to the transition into Mobile Commerce.
- Why is collaborative commerce needed?
The core tenet undergirding trade is the establishment of trust between buyers and sellers of goods. The improvements made to commerce through technology and innovation to date has solely been focused on making trade more efficient and allowing more people around the world to participate. Addressing the issue of trust has always been a positive knock-on effect but never the main issue addressed. DIMUTO believes that the next wave of change will be a movement towards Collaborative Commerce (c-CommerceTM) where technology and innovation are used to address the issue of trust head on.
- Is there a lack of trust in commerce today?
There is a lack of trust in three main areas of commerce today. First, participants on the supply chain distrust each other with their information. Second, border customs distrust the documents suppliers provide them. Third, financial institutions distrust suppliers, hence are reluctant to finance their trades.
- What are the consequences of lack of trust in commerce?
There are three key consequences caused by the lack of trust in commerce.
First, participants within the supply chain are unable to trace the journey of goods in the supply chain. This is because participants do not share information about the trade beyond their immediate stakeholders.
Second, there is a lack of cash flow experienced by participants. Financial institutions do not trust borrowers even after knowing the details of their trade as information shared cannot be verified.
Third, there will be disputes occurring between participants due to differences in expectations. This is caused by information asymmetry made worse by the lack of traceability leading to disputes between participants about their individual obligations.