Supply Chain Finance and Blockchain Technology: The Case of Reverse Securitisation SpringerBriefs in Finance eBook : Hofmann, Erik, Urs Magnus Strewe, Nicola Bosia: Amazon in: Kindle Store

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

The enterprise green investment cost vT is negatively correlated with the enterprise carbon emission factor. That is, the higher the emission reduction efficiency, the greater the demand for green technology. In addition, the investment cost of enterprises is also related to the green price sensitivity of consumers. The more sensitive users are to price, the greater the demand of enterprises for green emission reduction technologies. In addition, emission reduction cost coefficient d and pollution cost coefficient α also affect the optimal green input. Represents the evaluation factor of consumer’s green degree, namely consumer’s green sensitivity level.

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Acting as intermediaries between suppliers and buyers, these companies have a significant impact on the financial domain by providing benefits to both parties. Their primary focus is on enhancing working capital and minimizing contract processing costs for both suppliers and buyers. This strategy has already been embraced by various domains including healthcare supply chains and equipment financing, and it is now gaining traction among small and medium-sized businesses. ’ sub-supply chains adds significantly to a supply network’s complexity . At this SCF platform stage, Shen et al. , Bals et al. , and C.

— Concept – Where are the opportunities of blockchain-driven supply chain finance? — Discussion – How does the full potential of blockchain technology in supply chain finance look like? — Conclusion – What can we learn from blockchain-driven supply chain finance?. Taulia is a fintech company that provides supply chain financing and invoice management solutions to businesses. Their platform enables suppliers to request early payment on their outstanding invoices, while buyers can extend their payment terms without negatively impacting their cash flow. Taulia’s technology has been adopted by many Fortune 500 companies, including Coca-Cola, PayPal, and Pfizer.

Future Research

Moreover, two or more parties in an SC jointly produce value , and the financial resources flow is managed on an inter-organizational level. Figure 6.Profitability of different models under price and quality sensitivity. Manufacturer 1’s profit. Retailers’ profits.

For Walmart’s pork or mango suppliers, until the positive market effects of improved food safety and quality result from the blockchain, there will be no significant change in the supplier market demand, but only a change in supply due to a change in Walmart’s attitude toward suppliers. This will be influenced by whether or not the pork or mango suppliers are willing to cooperate with Walmart in building the blockchain platform. This study aims to measure the perceived business benefits of blockchain technology implementation in the banking sector and establish factors to measure these benefits. Concerns regarding security, values, and standards are essential to banking operations. Data was collected from 291 respondents who are either blockchain consultants, blockchain marketing experts, or CEOs/business heads of banks that are in the process of advising, consulting, or implementing blockchain technology.

Governments will use the Ethereum blockchain to record, store and track energy data. We can use smart contracts to sell excess renewable energy to other network participants, enabling peer-to-peer trading of energy. Currently, the world’s more well-known projects are Power Ledger, Greenium, and Rowan Energy.

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

In both pilots, Walmart, as the leading food supply chain player, requires its upstream pork or mango suppliers to set up data collection systems, including electronic data tags and RFID, to match the blockchain information sharing platform. As the initiator and leader of the blockchain platform, Walmart will bear the majority of the construction costs, while its upstream suppliers will bear the infrastructure upgrade costs. As can be seen from the above equation, there is not a simple linear relationship between green credit funds of banks and emission reduction. Blockchain technology provides transparent data between participants to help them understand the movement of the energy market. In April 2018, Chile’s National Energy Board announced the launch of an energy-focused blockchain project.

Omega Int. J. Manage. Wang, G.; Wang, L.; Mohammed, B.S.; Hamad, A.A. An investigation on the risk awareness model and the economic development of the financial sector.

Information Sharing Game and Value Analysis for the Following Enterprise Applications of Blockchain Technology

The “greenwashing” behavior of enterprises will increase consumers’ suspicion of green products and negatively affect their purchase intention. Based on this perspective, Zamagni A. Studied the mediating role of green letters in the suspicion of green advertising and the willingness to buy green products. Hyoshin K. Considered the product price problem that “high value means environmental protection” and tested the impact of subsidy policies on the consumption of environmental protection products with an intuitive standard.

  • Then, a possible blockchain-driven supply chain model is defined.
  • C2FO’s technology has been used by companies such as Costco, Whirlpool, and Allergan.
  • The systematic literature review is different from a traditional literature review.
  • And M.C.; investigation, L.Z.; resources, L.Z.; data curation, L.Z.

Rairo-Oper. Feature papers represent the most advanced research with significant potential for high impact in the field. A Feature Paper should be a substantial original Article that involves several techniques or approaches, provides an outlook for future research directions and describes possible research applications. This study investigates the importance of the determinants affecting the adoption and usage of blockchain-based SCM systems in the context of organizations.

Use cases of Blockchain in the Energy Sector

As a result, the previous ‘1 + N’ mode centered on the COs has been expanded into the ‘N + N’ mode, which focuses on SMEs’ transactions and finally forms the SCF 3.0 of platform mode . At the traditional level, SCM aims to comprehensively manage all aspects of the entire SC (e.g., suppliers, manufacturers, and distributors) A Contribution to the SCF Literature to meet the customers’ needs. Furthermore, R. W. Seifert and D. Seifert considered traditional SCM as ‘physical supply chain management’, also known as PSCM. Introduction – Why to pay attention on blockchain-driven supply chain finance? Contents Introduction – Why to pay attention on blockchain-driven supply chain finance?

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In 2020, Power Ledger announced a sustainable project to build an apartment and a blockchain platform with 39 apartments. The platform will be equipped with solar rooftop photovoltaics and local battery storage, allowing apartment owners to use it to sell excess solar energy they generate back into the grid. The green energy supply chain financing has the following problems. Table 3.The number of journals and articles involving both the perspectives of SCF and financial ecology/ecosystem included in the AJG2018 published between 2002 and 2022 .

In contrast, the exclusion criteria imply that the resource corresponds to only one SC or financial behavior aspect without considering economic ecology, and vice versa. Furthermore, when the financing behavior is involved only in one single organization without concerning the interaction between SC actors and finance is also excluded. The main methodology adopted in this paper is a systematic literature review with a concept description and content analysis. The systematic literature review is different from a traditional literature review. Methodology experts have classified the literature review into narrative and systematic.

Supply Chain Finance and Blockchain Technology: The Case of Reverse Securitisation

Intuitively, when green sensitivity beta is in a relatively high range, manufacturers and retailers are more inclined to increase green levels and sell more products. In particular, retailers will raise wholesale prices and manufacturers will improve green levels and increase production to meet increased market demand. The structure of this paper is as follows. The relevant literature is reviewed in Section 2. In Section 3, the model and hypothesis are described, the financing mode of green energy-efficient supply chain is constructed, and the sequence of events is analyzed. Section 4 discusses the cooperative game and Stackelberg game scenarios without blockchain technology.

This research served as a forerunner for the development of an SCF ecosystem and contributed to the managerial implications of the presented framework from the viewpoint of various stakeholders. Considering the subject area, as Figure 3 shows, the most fixed-terminology ‘Supply Chain Finance’ study area from ‘Scopus’ refers to the business, management and accounting (20.3%), following computer science (17.3%), engineering (16.3%), and decision sciences (12.5%). Figure 1.Blockchain-based supply chain information sharing model. The blocks in the figure contain only the key parts of the actual shared information. Zhou, X.; Li, J.; Li, F. Recycling supply chain modeofnew energy vehicle power battery based on Blockchain technology. Safra, I.; Jebali, A.; Jemai, Z.; Bouchriha, H.; Ghaffari, A. The beneficial effect of information sharing in the integrated production-distribution planning of textile and apparel supply chain.

Publisher’s summary This book investigates how the Blockchain Technology for Supply Chain Finance 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 do so, it first identifies the principal barriers and pain points in delivering financing solutions. Then, a possible blockchain-driven supply chain model is defined. Using this framework, the book subsequently discusses relevant use cases for the technology, which could open up new opportunities in the SCF space.

This paper’s comprehensive systematic literature review flow combining the six processes identified by Jesson et al. is presented in Figure 1 below. In this paper’s context, step 1 of making a research plan based on research questions from the perspective of financial ecology has been mentioned in Section 1.2, and is, therefore, not discussed further in this section. In addition, to better fit the logical structural line of this paper, among the other five steps, step 2 to 4 are integrated into Section 3 of literature collection, extraction, and data extraction. Step 5 is divided into Section 4 with the data integration and analysis, and Section 5 with the discussion.

When the coverage of green funds of banks is large, manufacturing enterprises will have a larger income, but there will be an extreme situation of overproduction, leading to a decline in emission reduction performance. Under the condition of green credit financing, the optimal wholesale price determined by the retailer satisfies the following equation. From the perspective of enterprises manufacturing green products, although consumers have a high intention of environmental protection, enterprises often find it difficult to find effective strategies to guide consumers to buy green products. Tong Z conducted research from the perspective of psychological distance scenario, and the research showed that product information framework would have an impact on consumers’ willingness to buy green products. Some scholars analyze the motivation of consumers to buy green products from the perspective of policy subsidies. I-Hsuan derived green product purchase decisions under the two scenarios of corporate subsidies and consumer subsidies by referring to the dependency preference theory.

Moreover, for achieving an enterprise’s long-term development strategies, introducing the Internet and mobile technology to integrate the four flows is inevitable . As a result, in addition to strengthening existing investments, SCF as one of the enterprise development tools, with the introduction of advanced financial-related IT and cloud computing, is required . In the future, emphasis should be placed on creating a big platform for the SC and financial ecosystem, combining industry and finance by increasing technological investment and management. The SC will no longer be a one-way flow; instead, it will stress multiparty cooperation within the entire financial ecosystem.

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

In Figure 5c, it can be seen that for manufacturer M2, not sharing information is the dominant strategy only when consumers are extremely price sensitive to the product; otherwise, information sharing is the optimal strategy. In addition, it discusses the establishment and non-establishment of a blockchain technology-based information sharing platform and the long-term demand, pricing strategy, and revenue distribution after establishment. Furthermore, the paper discusses the situation of consumer surplus and social welfare from a public perspective, thus informing the decision-making of small and medium-sized supply chain members and the public sector.

Introduction—Why to Pay Attention on Blockchain-Driven Supply Chain Finance?

Thus, future research on SCF should focus more on standardization building to change this situation. Subsequently, Gelsomino et al. systematic research redefined SCF from the ‘Supply Chain-oriented’ and ‘Finance-oriented’ perspectives. It touched on the six factors of products, stakeholders, SCC, organization, finances, and technology mentioned by C.

The platform-based sharing economy has emerged alongside the rise of digital technology. Meanwhile, the sharing economy has permeated financial services, and the SCF business model has evolved to a ‘digital platform-based model’ . Additionally, Wei and Shen et al. integrated the ‘financial ecosystem’ and further materialized the platform https://forexarena.net/ at the Internet-based operational level, perceiving it has a practical function in information processing, operation, service platform, and risk management. Furthermore, Q. Huang et al. also emphasized that the information-processing mechanisms on the SCF platform might ultimately improve the SMEs’ financial performance.