Blockchain-driven supply chain finance solution for small and medium enterprises
Jian LI1, Shichao ZHU1, Wen ZHANG1, Lean YU2()
1. School of Economics and Management, Beijing University of Technology, Beijing 100124, China 2. School of Economics and Management, Beijing University of Chemical Technology, Beijing 100029, China
Blockchain has attracted much attention in recent years with the development of cryptocurrency and digital assets. As the underlying technology of cryptocurrency, blockchain has numerous benefits, such as de-centralization, collective maintenance, tamper-resistance, traceability, and anonymity. The potential of the blockchain technology (BT) is widely recognized in the financial field. Although some scholars have proposed the combination of blockchain and supply chain finance (SCF), the details of this combination is rarely mentioned. This study first analyzes the coupling between SCF and blockchain technology. Second, the conceptual framework of blockchain-driven SCF platform (BcSCFP) is presented. Third, the operation process of three SCF models on the BcSCFP is proposed. Finally, a case study combined with actual events is conducted. This paper has a positive practical significance in the operation and management of banks and loan enterprises.
When the retailer has surplus goods and the sales revenue is not enough to pay off the bank principal and interest, the surplus goods ownership and the payment for purchasing are automatically transferred.
Goods supervision
When goods are stored in 3PL institutions, they are monitored by IoT technology, and the status information is uploaded to the BcSCFP automatically. When the status of goods reaches critical, the platform automatically alarms.
Loan
This contract includes the loan contract content signed by the bank and the loan enterprise The loan is repaid automatically on the payment due date
Transport
In the process of transportation, the system monitors the distribution temperature, route, and other status in real time. If the temperature or other status information exceeds the standard, the system alarms automatically
Tax
Enterprises in the supply chain pay taxes automatically through this contract
Discount
When consumers buy a certain number of products, they can have automatic discounts through this contract
Tab.1
Fig.4
Fig.5
Fig.6
Fig.7
Fig.8
Fig.9
Items
Traditional SCF
BcSCFP-driven SCF
Service object
Primary suppliers and retailers
SMEs in the supply chain
Interaction method
Paper document
Online and offline
Risk management
Advance evaluation
Real-time monitoring
Availability of credit
Difficult and expensive
Low cost, convenient
Credit transfer
Only to tier 1 suppliers and retailers
To the end of the supply chain
Bank human cost
Expensive human costs for checking
Almost no human cost
Bank verification time
Long
Short
Repayment guarantee
No
Smart contract
Tab.2
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