Demica, the London-based working capital management specialist, has today announced a strategic alliance with California-based firm Advanced Data Exchange (ADX) to offer their respective solutions in supply chain financing and business-to-business integration services to customers across Europe and the US.
Responding to growing demand for integrated trade services, this commercial alliance reflects the convergence between solutions that improve the financial relationships of trading partners - through invoice management and financing - and those that facilitate the electronic exchange of information in the supply chain.
Demica and ADX will market each others' solutions to their existing client base and also collaborate on joint supply chain management initiatives to leverage their combined knowledge, technical skills and experience.
Demica and ADX view their alliance as a natural fit, with both companies well established as a trusted intermediary for thousands of trading partner relationships based on their respective technology platforms Citadel and CommerceView.
Phillip Kerle, Chief Executive Officer, Demica, comments, "This is an exciting move for Demica as it enables us to build on our core strengths and expand our offering along the supply chain - taking the logical step from financing payables and receivables to also financing purchase orders. Furthermore, we can confidently expand into a new but related market - business integration services - with the support and experience of one of the market leaders. In essence, this alliance helps both parties provide a more compelling and complete service to the supply chain."
Alongside their supply chain integration services, ADX is now in a position to offer customers the option of financing accounts receivable and payable to optimise payment timings between buyers and suppliers.
Walt Borland, President and CEO, ADX, explains, "Extending our supply chain services to finance is actually a natural extension for ADX, as we already facilitate the flow of information in key supply chain processes such as order management and invoice presentment. We are confident that Demica's market-proven Citadel platform and their unrivalled expertise in receivables financing will make a powerful addition to our leading sup supply chain management capabilities. The real beneficiaries of this important alliance, however, will be our customers as they will ultimately be able to reduce the pressure on their own cash-flow through enhanced control of the payment cycle."