J.P. Morgan Payments Unveils Cutting-Edge Supply Chain Finance Solution with Oracle Integration, Bolstering Working Capital for FedEx and Other Clients

J.P. Morgan Payments has launched a Supply Chain Finance (SCF) solution integrated with Oracle Fusion Cloud ERP, which is being used by FedEx. The solution optimizes working capital and boosts liquidity management. FedEx, J.P. Morgan Payments, and Oracle collaborated to create a feature that incorporates J.P. Morgan Payments SCF functionality directly within Oracle Cloud ERP. This solution provides working capital flexibility to FedEx while offering early payment options to vendors.

J.P. Morgan Payments has introduced a cutting-edge Supply Chain Finance (SCF) solution integrated with Oracle Fusion Cloud Enterprise Resource Planning (ERP), designed to optimize working capital and enhance liquidity management for its clients. This innovative solution, which is currently being utilized by FedEx, marks a significant milestone in the company's commitment to delivering advanced financial solutions.

The new feature, developed in collaboration with Oracle and FedEx, incorporates J.P. Morgan Payments' SCF functionality directly within Oracle Cloud ERP via Oracle B2B. This integration allows FedEx to configure the solution natively within the system, significantly reducing the typical six-month development project to a simple activation and setup process.

When FedEx approves an invoice, vendors can choose to wait for payment on extended terms or receive early payment through J.P. Morgan Payments at financing rates based on FedEx's superior credit rating. This flexibility in working capital management benefits FedEx by strengthening its financial position and operational resilience, while also providing vendors with early payment options.

Trampas Gunter, CVP Corporate Development and Treasurer at FedEx, highlighted the transformative impact of the collaboration: "Leveraging J.P. Morgan Payments' SCF and liquidity solutions tailored to our business has strengthened our financial position and enhanced our operational resilience, ultimately benefiting our customers and shareholders."

The J.P. Morgan Payments SCF functionality is delivered through the company's Integrated Trade Finance for Oracle Fusion ERP, which was announced at Oracle Cloudworld 2024. Additionally, FedEx has implemented an award-winning liquidity management strategy leveraging Liquidity & Account Solutions (L&AS) from J.P. Morgan Payments and Kinexys by J.P. Morgan’s innovative blockchain solutions. FedEx is leveraging Kinexys Digital Payments for the first time to enhance liquidity management across notional pools in Europe and Asia Pacific.

J.P. Morgan Payments and Oracle have a longstanding relationship focused on integrating J.P. Morgan Payments’ treasury and trade solutions within the Oracle Cloud ERP platform. Since 2022, the collaboration has provided dozens of mutual corporate clients with enhanced user experience, automated processes, and end-to-end connectivity.

Rondy Ng, Executive Vice President of Applications Development at Oracle, noted the transformative potential of the collaboration: "The collaboration between Oracle and J.P. Morgan Payments is transforming how our joint customers unlock new banking and working capital solutions through turnkey activation and embedded AI services within Oracle Cloud ERP. With our joint multi-year continuous innovations in Oracle B2B with J.P. Morgan Payments, we empower businesses to achieve near touchless payment transactions and agile and resilient financial operations for a dynamic economy."

This integration aligns with Oracle's broader strategy to enhance supply chain efficiency. Oracle has recently added a new solution within Oracle Fusion Cloud Supply Chain and Manufacturing (SCM) to help organizations streamline warehouse operations and enhance supply chain efficiency. Oracle Advanced Inventory Management leverages embedded AI to simplify processes, improve decision-making, and optimize fulfillment.

The integration of J.P. Morgan Payments' SCF solution with Oracle Cloud ERP underscores the importance of technology in modern finance, enabling companies to optimize their working capital and enhance their operational efficiency.

References:
[1] https://www.stocktitan.net/news/JPM/j-p-morgan-payments-launches-cutting-edge-supply-chain-finance-qw0h0oyd6tpb.html
[2] https://finviz.com/news/113575/oracle-helps-customers-boost-supply-chain-efficiency-with-new-advanced-inventory-management-solution