Transparent Supply Chains: A Tech Pioneer’s Guide

Intro

In an era where the integrity of supply chains is under constant scrutiny, the role of technology in ensuring transparency and security is more critical than ever. I had the opportunity to sit down with Yash Bolarum - a physical metals trader and tech innovator. Yash co-founded Vujis, a platform that uses private trade data to aid in finding and validating genuine buyers and suppliers of wholesale commodities in an effort to champion supply chain transparency. We delve into his experience, the technology his company brings to the table, and the future of trade logistics.

Q&A - Yash Bolarum

Q1: What was the pivotal moment that led you to finding a tech company focused on supply chain transparency?

After I got scammed out of $17,000 by a metal supplier in China, I realised how difficult it is to find genuine suppliers and buyers. There are many brokers in the space who want to mediate transactions while representing fake buyers or sellers. I wanted to bring more transparency to both buyers and sellers. When I discovered that you could use import and export data to find genuine suppliers with a history of shipments, I knew I had to take advantage of it to help others. This way, they wouldn't waste their time or get scammed.

Q2: As a physical commodities trader yourself, how have you witnessed the effects of theft, fraud, and lack of security within supply chains?

Although I've had only a short stint in physical commodities trading, I've noticed that there are a lot of different scams out there. The individuals posing as suppliers typically have no past shipping record and create new companies. They then showcase a warehouse full of goods, taking videos and pictures. They claim that the price of these goods is significantly below market rate, which attracts less experienced buyers. Sometimes, they even invite buyers to this warehouse in another country to prove the existence of the goods. Next, they ask for a down payment before shipping the goods, but then the goods never arrive, and nothing is shipped. They simply run away with your down payment. There are other scams involving letters of credit and warehouse receipt scams, but this is the tactic I've seen most frequently.

When it comes to fake buyers, their methods are a bit different. They typically place a contract on the market (or issue a letter of intent) for an unusually large volume, often an absurdly huge amount. They then require you to complete numerous time-consuming documents, such as their ICPO (Irrevocable Corporate Purchase Order) and their own sales and purchase agreement. They request copies of your passport and, under the guise of conducting their KYC (Know Your Customer) process, they open credit cards and bank accounts in your name. Subsequently, they max out these credit cards, leaving you with potentially devastating consequences like a damaged credit score, financial liability, and legal complications. While this hasn’t happened to me, I urge caution when sharing your passport details, as this could be part of a fraudulent scheme.

Q3: How can importers benefit from being flexible in their sourcing strategies, especially given the current global trade climate?

Not every supplier requesting a down payment is fraudulent. There are no hard and fast rules in this area; much depends on your intuition and discernment in sourcing. Many legitimate companies require prepayments before dispatching goods. Taking risks is a part of business, but it's crucial to minimise these risks with appropriate due diligence and careful selection of Incoterms, especially for the first delivery.

For your initial shipment, consider picking up the goods ex-works using your own logistics team. While CIF (Cost, Insurance, and Freight) and CFR (Cost and Freight) options might seem more convenient, they pose greater risks since you leave the shipping in the supplier's hands. I also recommend visiting the supplier’s stock in person, conducting your own tests and quality assurance, and buying only what you can physically verify in the warehouse. Once the goods are loaded onto your truck, make the payment then and there via a TT (Telegraphic Transfer) wire transfer.

Q4: What role does technology play in improving quality control and product safety in today’s trade practices?

There are several effective ways to ensure the quality and security of international trade transactions. One key method is utilising advanced testing through reputable testing agencies. Additionally, tracking containers during shipping offers real-time insight into the transit of goods, enhancing security. When it comes to sourcing new suppliers and customers, a reliable approach is to examine their past shipping records. This helps in verifying their credibility and track record in the industry.

Q5: As theft becomes increasingly sophisticated, what technologies does Vujis utilise or develop to protect against theft and fraud in supply chains?

Vujis addresses the fundamental problem by using private import and export data to help you find customers and suppliers with a verifiable shipping history. Suppliers and customers with past shipping records are generally more trustworthy. We also provide individual contact details of various employees within these companies, which helps in avoiding certain scams where individuals falsely claim to represent large corporations. This was a common issue when I traded sugar, with fraudsters pretending to represent major companies like Viterra or Cargill and asking for down payments. We ensure you get the email addresses and phone numbers of legitimate representatives, not imposters.

Our data comes from highly trusted sources, including government agencies from over 190 countries and large shipping companies, enhancing the reliability of any buyer or seller in our records. While it's important not to trust anything blindly, working with high-quality leads sets you up for success. Nevertheless, conducting your own due diligence remains essential.

Q6: How are you addressing the challenge of tightening supply chains, and what due diligence strategies do you recommend to importers?

This is a key problem a lot of people are facing. At Vujis, we’re addressing the challenge of tightening supply chains by allowing you to see what the larger companies are doing. You can pretty much search any company you know that imports or exports on Vujis. With this, you can see their pricing, the trade route, and the code they ship under to deal with import and export tariffs. This information is instrumental in identifying more efficient trade routes and reliable suppliers, which is crucial in the current climate of supply chain disruptions.

For due diligence, we recommend that importers use Vujis to verify supplier credibility through their past shipping records. Understanding global market trends through our platform helps in making informed sourcing decisions. Additionally, our data can be used to mitigate risks in supply chains by diversifying suppliers and choosing more reliable shipping methods.

We also emphasise the role of technology in streamlining supply chains. Our AI and data analytics tools are essential in optimising supply chain operations, making them more resilient and adaptive to changing market conditions. 

In summary, Vujis is not just great for spying on competitors or analysing how larger companies stay competitive. It’s also a vital tool for importers to conduct thorough due diligence and adapt their supply chains to the dynamic global trade environment.

Q7: With the wider use of automation and artificial intelligence, how is Vujis enhancing traceability across the supply chain?

Vujis harnesses automation and artificial intelligence to enhance supply chain traceability by providing regularly updated, data-driven insights. Our platform aggregates and analyses vast amounts of import-export data, enabling users to track product movements, verify supplier and buyer authenticity, and optimise trade routes. This AI-driven approach ensures higher accuracy and efficiency, making supply chains more transparent and reliable for our users.

Conclusion

My conversation with Yash not only highlighted the innovations at Vujis but also shed light on the broader implications of technology in transforming international trade. As supply chains become smarter and more secure, the hope for a transparent global market becomes increasingly tangible. Thank you, Yash, for sharing your vision and how your company is making strides in this vital industry.