Supply chain finance and blockchain technology the case of reverse securitisation 2018 Thomas Thurner 22 Citations

None of these questions have been well answered. Therefore, we considered a financially constrained manufacturer borrowing from a bank, and the manufacturer determined the quantity and greenness of the product to be produced. In addition, this paper considers that green products will prove to have a positive impact on consumer demand. The blockchain technology promises to change the way individuals and corporations exchange value and information over the internet, and hence is perfectly positioned to enable new levels of collaboration among actors along international supply chains. The book thematises how the BCT can facilitate supply chain finance programmes, as the authors identify SCF as the next frontier of financial services to improve the supply chain cycle.

Wu, D.D.; Yang, L.; Olson, D.L. Green supply chain management under capital constraint. Lee, S.Y.; Klassen, R.D. Drivers and enablers that foster environmental management capabilities in small and medium-sized suppliers in supply chains. Hong, J.; Zhang, Y.; Ding, https://forexarena.net/ M. Sustainable supply chain management practices, supply chain dynamic capabilities, and enterprise performance. Chen, Y.; Ni, L.; Liu, K. Does China’s new energy vehicle industry innovate efficiently? A three-stage dynamic network slacks-based measure approach.

However, affected by the level of green products, the actual demand of the market will decrease, thus leading to the decrease of the retailer’s income. When there is a wide range of demand for products, the risk of bankruptcy for cash-strapped manufacturers is reduced. Setting higher wholesale prices and encouraging cash-strapped manufacturers is beneficial for retailers. In this section, concrete examples will be introduced to verify the validity of carbon emission performance. Hunan Jinyuan New Material Co., Ltd. is a new enterprise in green transformation.

Impact of Fintech on Supply Chain

The narrative literature review can also be grouped into a descriptive literature review and a critical descriptive literature review. Some scholars pointed out that the above two types of narrative literature reviews are traditional styles, while the remaining one is the newly systematic literature review. Figure 4.Determining demand and profitability under price and quality sensitivity. Demand from supply chain members. Profitability of supply chain members.

‘WoS’ had 505, ‘Scopus’ had 2076, and ‘Google Scholar’ had 7700. The documents retrieved here include articles, conference papers, book chapters, reviews, books, etc. Moreover, through the application of blockchain technology in port logistics, economic factors are still the core competitive advantage of port logistics . Supply chains can be complex and fragmented, with many different players involved in the process, from suppliers and manufacturers to logistics providers and retailers.

In order to improve environmental performance, manufacturers are accelerating the green transformation of their industries to produce more environmentally friendly products. In February 2023, China’s Chongqing Economic Development Zone cooperated with Green Energy Development Co., Ltd. and other enterprises to jointly build new energy vehicles and carbon neutral industrial clusters. Some scholars have studied the performance changes brought by green energy-efficient supply chain management for enterprises from different angles. Some scholars have studied the performance changes brought by green energy-efficient supply chain management for enterprises from different angles . Most importantly, green level information is private manufacturer information. For their own benefit, manufacturers may misrepresent information about green levels, commonly known as “greenwashing”.

Cites background from “Supply chain finance and blockchain…”

Although this study is related to the financial, SCC, and stakeholder dimensions that C. Bals proposed, with an emphasis on an organization’s internal and external operation management, it does not precisely define the enterprise types (e.g., COs/SMEs) and the specific role an enterprise plays in the SCF. This section focuses on the information and data integration from the journal articles selected above to map, link, and find the corresponding answers by conceptual development description or content analysis based on two different research questions.

• However, little of the existing research on SCF helps provide a literal representation of the financial ecosystem.
• Zhang, H.; Shi, Y.; Yang, X.; Zhou, R. A firefly algorithm modified support vector machine for the credit risk assessment of supply chain finance.
• Previous researchers, such as Budin and Eapen , noted that net cash flow occurs through corporate activities throughout the cash planning phase.
• ’ sub-supply chains adds significantly to a supply network’s complexity .

The application of blockchain can solve the problem of unbalanced profit distribution among supply chain members caused by information asymmetry. References to blockchain technology can give supply chain members an idea of the extent to which everyone is profiting from it. Blockchain can reduce the strength difference between game subordinate members and core supply chain members and protect the fairness and equality between supply chain members.

In addition, to explicitly answer this question, the content analysis is introduced based on a thorough review of 132 selected papers. Before beginning the content analysis, a coding system was established to record the paper’s information such as the topic, authors, research directions, and definitions relating to SCF. Following an extensive reading, the understanding of ‘Supply Chain’ and ‘Finance’ is synthesized and reclassified into eight sub-SCF dimensions under three sub-areas of the financial ecosystem, with a summary of the corresponding article number counts and related proof quotes . Moreover, the paper uses Walmart’s blockchain-based food supply chain to validate the findings of the article, which can provide some reference for the formulation and implementation of corporate strategies, as well as government decisions. However, this paper only considers the game situation of the two-level supply chain, and does not take into account the incentive policies already implemented by the government to analyze the specific impact of government subsidies on the decision making of supply chain members.

Literature Collection, Evaluation and Data Extraction

In addition, Camarinha-Matos and Afsarmanesh blended the financial ecosystem concept into understanding a collaborative network. Based on this viewpoint, Graca and Camarinha-Matos further put forward the idea of a Collaborative Business Ecosystem from the perspectives of sustainable development, actor collaboration, and performance improvement. In the short term, Walmart has found that the costs it invests in the blockchain are greater than the benefits of the blockchain, which indicates that Walmart will have to bear significant upfront construction costs and a longer payback period.

Banks and banking systems are primarily referred to as financial institutions in this phase . According to the credit support from the CO of ‘1’ in the SC and through the control of the four flows of ‘business’, ‘logistics’, ‘capital’, and ‘information’, the financing credit support for ‘N’ of the upstream and downstream partners is completed . Prior to the data extraction, the scope of the literature with inclusion and exclusion criteria needs to be clarified. In this research, the inclusion criteria relate to SC-based financial behavior and emphasize both aspects of SCF and financial ecology.

Finally, step 6 of the write-up summary can be mirrored in the overall writing of this article. With the establishment of a blockchain-based information sharing platform, information transparency allows for the convergence of the two oligopolies of wholesale prices. In an oligopolistic market where there are only two competing manufacturers, the price of products is the same but there is a certain difference in quality. The best response is for both competing parties to stabilize their products at a suitable price through an unwritten agreement, and to move away from price as a form of competition and toward quality, brand, and service . In recent years, China has been increasing its financial support for green transformation. According to data released by the People’s Bank of China, by the end of 2022, the balance of green loans was 22.03 trillion yuan, up 38.5% year on year.

Platform update page

Therefore, by integrating the components and characteristics of the blockchain into the various application links of supply chain finance, it can effectively solve the dilemma of SME financing in supply chain finance. Overall, the future of fintech in supply chain management looks very promising. By leveraging new technologies and digital payment systems, businesses can streamline their supply chain operations and realize significant cost savings and increased efficiency.

The network offers a third-party information service platform and introduces more capital providers . Wei and C. Y. Lin pointed out that the financial organizations are not only limited to banks, but also extend to small loan companies and even individual investors (e.g., P2P). In other words, A Contribution to the SCF Literature the financial market structure is decentralized, in line with the law of IT development itself. Meanwhile, the SMEs’ orders, waybills, receipts, and financing are gathered on the platform. Furthermore, ‘business, logistics, capital and information flows’ are unified to form the Big Data .

Technologies like blockchain are in their initial stages, and recent advances in blockchain technology may impact our findings. The developed instrument could help give decision makers a foundational view to measure the benefits of implementing blockchain technology before they choose to integrate it in their existing system. The scientific and societal significance of the study based on its practical and theoretical applications is presented at the end. The book gives a good introduction to peer-to-peer value exchange systems, group consensus mechanisms and smart contracts. The authors describe commercial opportunities for SCF instruments which blockchain can offer, e.g. the visualisation of the physical flow of goods, as well as other B2C applications.

Literature Review

The research shows that the supplier’s false declaration of greenness will affect the wholesale price it sets, and the wholesale price after the application of blockchain technology is jointly determined by the input cost of blockchain technology per unit product. In the Stackelberg game, it is up to the manufacturer to decide whether to use the blockchain, and as long as the manufacturer is willing to use it, the retailer will benefit as well. In addition, when retailers can obtain large profits by using blockchain technology, they can jointly promote blockchain technology by subsidizing manufacturers.

However, according to the current globalization trend, a supply chain network consisting of any number of members is more realistic. However, it is difficult to derive an equilibrium strategy for a supply chain network with capital constraints. Therefore, this is a promising research direction. Second, it is an interesting perspective to explore the optimal point in time to identify green energy-saving supply chain members and provide useful decision-making insights. However, this is also difficult to solve because it requires complex calculations, so we leave this to future research. Third, we can further integrate consumer utility into our model to discuss the issue of retail pricing.