Air France-KLM selects Tradeshift to drive global supplier network
Tradeshift, the fastest growing business transaction and collaboration platform, today announced that Air France-KLM, the second largest airline group in Europe, has selected Tradeshift’s platform for its e-invoicing platform. The web-based platform will replace the airline’s current solution and give Air France-KLM and its suppliers the ability to increase invoicing accuracy, and improve visibility to the payment process and status, allowing all parties to speed up business transactions.
Tradeshift’s cloud-based, e-invoicing and procure-to-pay solution will initially be used by a select number of Air France-KLM’s suppliers to process more than half a million invoices annually. Potential adoption of the platform will be studied for e-procurement flows.
The impetus for the project stemmed from Air France-KLM’s need to replace their business process platform owned by SAP Ariba. Then, after a tender involving the major actors for e-invoicing solutions, the airline opted to implement Tradeshift due to their clear offer, strategy, business model and proven supplier on-boarding rates.
“The global nature of the airline industry makes doing business inherently complex because it requires speed, flexibility and seamless collaboration in many aspects of our business, especially transactions and accounts payable.” said Thierry Bellon, Air France CPO. “Tradeshift’s platform ensures that something as simple as an invoice doesn’t slow down our 24/7 business, benefiting both our company and our suppliers.”
The Tradeshift platform enables collaboration across global supply chains by allowing buyers and suppliers to communicate in real-time. This method increases efficiency, transparency and productivity in today’s global business world.
“Doing business globally is complicated, especially more so for the airline industry which is ever evolving and changing,” said Charles Royon, Vice President EMEA, Tradeshift. “Air France-KLM’s decision to use Tradeshift’s platform signals a fundamental shift in the way the company wants to work with its vendors by providing a simpler and more streamlined approach to global supply chain management. Being chosen by a company of the caliber of Air France-KLM underlines the profound impact that an efficient and collaborative supply chain can have on a global business and we are excited to be a part of that.”
Tradeshiftis a global business-to-business platform that helps companies run more efficiently, using cloud-based technology to improve processes like invoicing, workflow and supplier financing. For suppliers, Tradeshift delivers free electronic invoicing, faster payments and predictable cash flow. For enterprises, we empower them to work more easily and productively with their entire supply chain, anywhere in the world.
For more information, please visit: http://www.airfranceklm.com/en/finance
EU and US agree end to Airbus-Boeing supply chain tariffs
The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic.
Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years.
It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC.
The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn.
In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products.
Boeing-Airbus dispute by the numbers
- The dispute began in 2004
- Tariffs suspended for 5 years
- $11.5bn worth of goods affected by tariffs
- $3.3bn in duties paid by businesses to date
- 15% levy on aircraft and 25% on non-aircraft goods suspended
Both sides welcome end to tariffs
European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.
“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.
Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”.
The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."
This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.
Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”