Being a network-based endeavour, blockchain technology is facilitating cooperation between competitors. In this regard, a V-form organisational structure has been suggested as ‘an outsourced, vertically integrated A Contribution to the SCF Literature organisation’ tied together by blockchain [5]. This form of organisation is comprised of an ecosystem of fully independent companies which coordinate and audit their activities through DLT [41, 79].

• You are free to copy, distribute and use the database; to produce works from the database; to modify, transform and build upon the database.
• Skilled negotiators use anchoring to their advantage, setting initial terms that frame the negotiation in their favor.
• Finally, main trade finance methods and payment mechanisms used in international trade transactions, such as ‘letter of credit’, ‘open account’ and ‘bank payment obligation’, were added.
• Considering that the approval of SCF applications is manual and complex, usually only the most well-known applicants are currently being approved, while MSMEs applications remain under-served [2, 74].
• While SCF is difficult to obtain for many stakeholders in an ordinary business environment, the ongoing pandemic and global recession magnify the existing pain points and barriers in SCF and pose new ones of unprecedented scale [73].

Sustainability Valuation of Business (Springerbriefs in Finance)

The book uses many very indicative illustrations, which helps to visualise the rather challenging concept. Saberi et al. [120] analysed inter-organisational blockchain implementation challenges, alongside intra-organisational, system related, and external to the supply chain challenges. They identified information sharing issues, cultural differences, and challenges in coordination and communication that impede collaboration in supply chains [120]. Kouhizadeh et al. [86] detect the complexity of blockchain technology and the need for re-engineering of business processes across the supply chain in an orchestrated manner as the inter-organisational barriers, in addition to the aforementioned confidentiality and security concerns. Korpela et al. [85] focus on the requirements for the digital supply chain transformation to succeed.

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Modern supply chains need end-to end optimization to manage resilience and an expanded set of responsibilities. As a result, manufacturers are now asking whether supply chain planning should begin even before sourcing — with product design and production planning. Running through these case studies is the need for new tools that automate manual processes and supplant legacy systems that were designed for a simpler and less volatile time.

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Manufacturers are now asking whether they should reach further back in the chain, in their pursuit of both resilience and growth opportunities. Product design and production planning, after all, are where initial strategic choices will ultimately have the most impact on product availability, sustainability, production and logistics costs, and downstream processes. The current pandemic has made clear that digitalisation and platform-enabled change is the only way forward for international commerce [106, 126]. It forced corporations and banks to digitalise their operations, seek digital alternatives to wet-ink documentation and understand the inefficiencies of the existing internet solutions and internal systems [72].

Customer reviews

This is achieved by leveraging reliable information stored in a blockchain that demonstrate to the financer, based on the customer’s operational information, the sufficiency of the credit or assets. The proposed model also enables the customer to mortgage its assets, which can range from raw materials to finished products, and transfer these assets to the financer in case of default, all happening in an integrated manner on the blockchain [162]. An important but still relatively undervalued use case of blockchain technology is Supply Chain Finance (SCF). Up to \(80\%\) of international trade transactions require trade and SCF to provide liquidity and risk mitigation [42]. The financing of trade transactions was estimated by the European Commission to be worth USD 10 trillion in 2017 alone [98].

Business and Politics in Asia’s Key Financial Centres: Hong Kong, Singapore and Shanghai (Springerbriefs in Finance)

We argue that blockchain technology has an innovation promoting role in supply chain finance solutions through reducing inefficiencies and increasing visibility between different parties, which have hitherto constituted the main challenges in this sphere. Based on a review of the academic literature as well as an analysis of the industrial solutions that have emerged, we identify and discuss the financial, operational and legal challenges encountered in supply chain financing and the promise of blockchain to address these limitations. We conclude by identifying promising research directions about the implementation process, inviting further research into the transformation of business models toward a more collaborative nature. In their analysis, Omran et al. [107] describe the use cases of blockchain for reverse factoring and dynamic discounting. Reverse factoring can be optimised because blockchain enables invoice status information to be transferred securely, allowing financiers to offer high-frequency financing services for any transaction value at lower risk [107]. In conjunction with smart contracts, blockchain can improve the access to reliable real-time information and automate decision-making through the integration of financial and informational flows in supply chains [93, 157].

Blockchains constitute distributed trustworthy databases, shared by a community, which can be used for KYC, Customer Due Diligence (CDD), and AML purposes [25, 117]. The key functionality for financers of an immutable ledger, in which near real-time data are recorded, is the provision of reliable evidence about new clients, such as IDs and any relevant background documentation [69, 159]. Blockchain can, thus, enable a system where all financers simultaneously hold KYC data and benefit from economies of scale resulting from checks needing to be undertaken only once [11, 164]. As evidenced in Table 3, some blockchain projects, such as Clipeum or Komgo, are building platforms where the members can upload KYC documents and authorise other participants to consult these documents upon request on a need-to-know basis [39, 66]. Therefore, blockchain could assist in credit checks, diminish compliance costs, and, thus, simplify the establishment of SCF programs.

The terms used in the final selection were determined after some pilot searches, where multiple possible combinations of search strings and keywords were tested. After this iterative trial and error process, the search protocol was formulated as shown in Table 5. This section presents the scientific publications identified https://forexarena.net/ through the research protocol outlined in Appendix 1 and the state-of-the-art business developments. MGHIF played matchmaker, inviting all of the executives to a meeting in Florida, along with industry consultants, to examine how they could work together and benefit from one another’s roles in the pharma supply chain.

The risk of fraud can be defined as the possibility that the receivable does not exist or varies from how it is represented [62]. L/Cs, purchase orders, invoices, warehouse receipts, and bills of lading (B/Ls) are all subject to tampering and alteration [14, 98]. Some common types of trade finance fraud are multiple invoicing, over-invoicing, duplicate B/Ls that are financed multiple times, forged B/Ls and L/Cs, and backdating of transport documents [28, 62] or even repeated pledges and empty pledges caused by asymmetric information and adverse selection [25, 93]. Fraudulent trade and supply chain financing deals plague SCF as evidenced by the USD 10 billion uncovered fraudulent deals only in China during the year of 2014 [62]. The ingrained dependence of SCF on paper-based documentation has driven up costs and caused inefficiencies in SCF [2, 36, 117, 144]. Sequential input and manual checking of the paper documentation is costly and error prone [25, 30], and results in delays in invoice reconciliation as well as in the receipts of payments [103].

You’ll read how almond producer Blue Diamond developed a strategy to acquire all of the software it needed to run a digitized global supply chain with end-to-end control, one piece at a time. The best way to illustrate the importance of excellent supply chain partnership is through real-world case studies, and this August’s issue is chock full of them. Our annual 100 Great Supply Chain Partners issue is dedicated to showing what supply chain excellence looks like in the real world — through partnership. Technology is critical, of course, but it requires expert help to use it to make supply chains hum.

That’s a lot to ask from a network designed around legacy technology for speedy, cost-efficient delivery of industrial freight to distribution centers. In the relatively frictionless business-to-business universe prior to the COVID-19 pandemic, manufacturers and retailers could take much more for granted in their supply chain planning. Demand was the critical, elusive variable; supply was an external partner’s responsibility; raw materials and transportation were, for the most part, cheap and plentiful.

Given that production costs, order quantities and transaction prices are usually perceived as trade secrets, privacy concerns will be a major problem in SCF should visibility be achieved [45]. Hence, parties that extract information rent are expected to be reluctant to take part in blockchain platforms that decrease information asymmetry. In practice, numerous initiatives have been vigorously researching blockchain-supported proposals that tackle the inefficiencies occurring from manual processing of information in trade finance (see cases from Komgo to Marco Polo in Table 3). For instance, by utilising a blockchain-based network that links all the entities involved in a L/C transaction, platforms like Finacle Trade Connect and Contour have achieved to reduce the end-to-end processing time by 90 per cent. Similarly, Komgo promotes structured data fields instead of documents in its platform, so that it can streamline seamlessly the entire document workflow in trade finance transactions in its platform.

Finally, main trade finance methods and payment mechanisms used in international trade transactions, such as ‘letter of credit’, ‘open account’ and ‘bank payment obligation’, were added. This literature could not be neglected in the present review, because trade finance is not only highly related [54, 160] but it also partially overlaps with the concept of SCF [21, 84]. Consequently, these keywords were searched for in the scientific article titles, abstracts, author’s keywords, and the keywords-plus field. 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.

Assuming that one negotiation style or process fits all negotiations is a significant handicap. Each negotiation is unique, requiring a tailored approach that considers the specific context, objectives, and dynamics involved. Flexibility and adaptability are key to navigating different negotiation scenarios successfully. It provides a fallback option, giving negotiators the confidence to walk away if terms are unfavorable. Understanding the counterpart’s BATNA helps in assessing their leverage and making more informed decisions.