Supply chain finance and blockchain technology : the case of reverse securitisation

Supply chain finance and blockchain technology : the case of reverse securitisation

Supply chain finance (SCF) is an important solution that optimizes cash flow in order to lower financing costs and improve business efficiency especially for small and medium-sized enterprises (SMEs). In recent years, the digital economy is developing rapidly worldwide and holds huge potential for entrepreneurs and SMEs. In the digital economy scenario, digitalization of supply chains is also becoming increasingly dynamic.

The research framework combines the results from two isolated areas, i.e. the impact of digitalisation on SC management (SCM) and the impact of SCM on the ripple effect control. To the best of our knowledge, this is the first study that connects business, information, engineering and analytics perspectives on digitalisation and SC risks.

The chapter starts with the concept of SCOM excellence and continues with fundamental definitions of digital supply chains and operations. Subsequently, digital technology classifications of SCOM are presented in terms of the SCOR model.

Thus, by following the traditional perception, smart contracts target to reduce transaction costs including arbitration and enforcement costs by realising trackable and irreversible transactions by using blockchain technology for distributed databases. However, the potential of smart contracts goes far beyond cost reductions by facilitating the entrepreneurial collaboration of cross-organisational business-processes that are characteristic for smart supply chains. A closer look to existing or ongoing smart contract projects reveals that the majority of smart-contract applications in business life are linked to supply chain management, Internet of Things and Industry 4.0 solutions. The author participated in several EU projects related to transnational entrepreneurial networks and smart supply chains. Thus, the paper discusses the research question of how and to which extent smart contracting and blockchain technology can facilitate the implementation of collaborative business structures for sustainable entrepreneurial activities in smart supply chains.

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As the Chief Operating Officer (COO) of CRX Markets, he was in charge to build the service offering of the company which is an independent marketplace for supply chain financing solutions. This book aims to discover possible opportunities from the application of this fascinating new technology to SCF financing solutions, particularly in approved payables financing. In a first step, the principal barriers and pain points in delivering the financing solutions are identified.

The book “Supply Chain Finance Solutions” offers orientation in the new discipline of Supply Chain Finance (SCF) by investigating the need for and nature of SCF, along with its characteristics and enablers. This lack of research leads to uncertainties about the successful implementation of SCF solutions within companies as there is little quantified evidence on the achievable cost savings and other potential benefits. The authors close this gap by providing the latest information on business concepts and the SCF market.

Based on a sample SCF model, the worldwide market size for such solutions and potential cost savings to companies engaged in SCF are analyzed. The work underlines the generally agreed-upon attractiveness and future relevance of SCF solutions by creating win-win situations; for all actors in the end-to-end supply chain as well as for external service providers. The book reveals new opportunities stemming from the application of BCT to SCF financing solutions, particularly reverse factoring - or approved payables financing. Urs Magnus Strewe (lic. oec. HSG, University of St. Gallen) is serial entrepreneur and an expert for implementing technology-driven business models for banks and financial service providers.

This paper does not pretend to be encyclopedic, but rather analyses recent literature and case-studies seeking to bring the discussion further with the help of a conceptual framework for researching the relationships between digitalisation and SC disruptions risks. It analyses perspectives and future transformations that can be expected in transition towards cyber-physical SCs.

Perceived usefulness, attitude, and perceived behavioural control affect the behavioural intention. This is one of the preliminary studies on BT adoption in supply chain and the findings imply that the supply chain practitioners perceive BT adoption free of efforts and would help them to derive maximum benefits for improving the supply chain effectiveness. Despite the emergence of new methods to determine the eligibility of loan applicants, the largest banks and providers of banking services in the world continuously rely on the credit history of individuals, which are being compiled and provided by Credit Reporting Agencies. We discussed in this session the predicted role of Blockchain Technology in the credit reporting industry.

BT provides better visibility and transparency by removing the disadvantages of trust related issues in a supply chain. In this paper, we advance the literature on BT and its adoption in the supply chain by developing, and statistically validating a model for understanding the user perceptions on BT adoption. The model is based on the integration of three adoption theories- technology acceptance model (TAM), technology readiness index (TRI) and the theory of planned behaviour (TPB). Based on a survey of 181 supply chain practitioners in India the proposed model was tested using structural equation modelling. The study found that the TRI constructs- Insecurity and discomfort have an insignificant effect on the perceived ease of use and usefulness.

• However, there is not much information available how the blockchain technology can be adopted into supply chain management, what kind of blockchain technology is the best for the supply chains.
• The goal is to also highlight emerging areas like the “Supply Chain Financial Bullwhip Effect” and Blockchain Technology.
• To do so, it first identifies the principal barriers and pain points in delivering financing solutions.
• Due to theoretical advantages, many companies are looking to implement the blockchain technology into their supply chain practices.
• BT provides better visibility and transparency by removing the disadvantages of trust related issues in a supply chain.
• The study found that the TRI constructs- Insecurity and discomfort have an insignificant effect on the perceived ease of use and usefulness.

Major Interest in SCF has steadily increased since the past decades and especially during the global financial crisis of 2008. However, SCF places the focus of research on the interconnection among SCM, corporate value and financial performance, away from the myopic perspective of managing solely the cost when studying financial aspects of SCM. This paper aims to redefine the term SCF by shedding light on theoretical ambiguities, provide an up-to-date systematic literature review of the SCF concept and identify research gaps. The goal is to also highlight emerging areas like the “Supply Chain Financial Bullwhip Effect” and Blockchain Technology.

Industry giants such as IBM, Maersk, China-based Dianrong and FnConn (a Foxconn subsidiary) are currently working to digitize the global, cross-border supply chain using blockchain technology, and will likely soon create blockchain platforms for supply chain finance. These solutions aim to reduce complexity and make data sharing more secure, accurate and efficient. This book offers a highly topical resource for stakeholders across the entire supply chain, helping them prepare for the upcoming technological revolution. book reveals new opportunities stemming from the application of BCT to SCF financing solutions, particularly reverse factoring - or approved payables financing. Supply Chain Finance (SCF) is a relatively recent thinking in Supply Chain Management (SCM) literature.

Investigating business and national culture during due-diligence and its impact on multi-national ve...

Since cryptocurrencies have gained immense popularity, its underlying technology Blockchain became an emerging field in supply chain management. The classical approach of the centralized applications for the supply chain management is far from being efficient and cannot present a solution for the general problems such as information sharing or interoperability among stakeholders. Due to theoretical advantages, many companies are looking to implement the blockchain technology into their supply chain practices. However, there is not much information available how the blockchain technology can be adopted into supply chain management, what kind of blockchain technology is the best for the supply chains. This study focuses on the evolution of the functional and technological aspects in the blockchain to provide an overview for the researchers, developers, supply chain experts and businesses.

This combination allows uncovering the interrelations of risk data, disruption modeling, and performance assessment. The framework developed, for the first time, conceptualizes the digital SC twin and advances our understanding about when and how to integrate data analytics into manage SC disruption risks towards building a theory of a digital SC. The findings presented can also guide firms in properly maintaining data for disruption risk management and highlight potentials of transition from offline to online decision-making support. This book presents a comprehensive introduction to Integrated Business Planning (IBP), building on practitioner’s experience and showcasing the value gains when moving from disconnected planning to IBP. A discussion of how disruptive technology trends like big data, Internet of Things, machine learning and artificial intelligence can influence IBP now and in the near future rounds out the book.

In particular, blockchain can increase the information transparency of the supply chain, thereby reducing the credit risk of SMEs financing and the operational risk in SCF. Categorization and analysis of the literature, it provides an important perspective for future research of supply chain finance risk management based on blockchain technology in the era of digital economy. This book investigates how the Blockchain Technology (BCT) for Supply Chain Finance (SCF) programs allows businesses to come together in partnerships and accelerate cash flows throughout the supply chain. BCT promises to change the way individuals and corporations exchange value and information over the Internet, and is perfectly positioned to enable new levels of collaboration among the supply chain actors. The book reveals new opportunities stemming from the application of BCT to SCF financing solutions, particularly reverse factoring – or approved payables financing.

To explore such potentials, we argue that companies should gain own first-hand experiences through small-scale experiments. In this exploratory research eight suppliers in the automotive industry are interviewed to measure the application of supply chain finance instruments in their supply chain in the Netherlands and the region of South-West Germany. The theoretical base of this study is a conceptual model of Supply Chain Finance based on literature research and empirical research in the Netherlands.

It was also shown that data security and privacy in current centralized format are increasingly dubious. In this regard, it was recommended that the major credential institutions in Iran consider this technology, because the emerging phenomenon is rapidly expanding into various industries, and staying away from these improvements will impose high costs on them in the future. Ultimately, it was suggested to policymakers to review the academic researches on Blockchain, and to conduct case studies to benchmark the best practices. This chapter is devoted to the digitalization of supply chain and operations management (SCOM).

Based on the challenges for conventional supply chains, this study aims to explore and evaluate the potentials and drawbacks of the blockchain technology to provide solutions with the focus on technological comparison. Blockchain technology, as a distributed digital ledger technology which ensures transparency, traceability, and security, is showing promise for easing some global supply chain management problems. In this paper, blockchain technology and smart contracts are critically examined with potential application to supply chain management. Local and global government, community, and consumer pressures to meet sustainability goals prompt us to further investigate how blockchain can address and aid supply chain sustainability.

Blockchain solutions add trust and privacy to the existing internet due to its tampering resistance and advanced cryptography characteristics. In healthcare systems, the technology has been implemented to ensure transparency, auditability, interoperability, and proper governance and management of patient information. To describe resource usage, we used five performance evaluation metrics i.e. memory consumption, disk write and read performance, network data utilization, transaction execution per unit time, and central processing unit (CPU) usage. The study revealed that the system developed using consortium-based platform outperformed private and public blockchain for more transactions per unit time, and proper utilization of resources of connected nodes such as CPU, Memory, and Disk storage. Blockchain technology (BT) is expected to bring a revolutionary paradigm shift in the manner the transactions are carried in the supply chains.