Supplier delivers goods or services and issues an invoice to the buyer. The invoice asset is securely recorded on the blockchain with a unique identifier.
Buyer submits approved invoices to banks to initiate financing. All pertinent details are promptly updated on the blockchain ledger.
Banks or financial institutions conduct thorough due diligence and issue financing documents with clear terms and conditions, including payment terms. This document is securely recorded on the blockchain with a reference to the invoice.
Upon approval of financing terms, Spydra's Workflow is activated. Banks or financial institutions purchase approved invoices from the supplier, transferring the payment directly to the supplier's account.
Several industries can benefit from implementing supply chain finance on blockchain due to the technology's ability to enhance transparency, efficiency, and trust in supply chain transactions.
Blockchain helps pharmaceutical companies combat counterfeit drugs, supply chain inefficiencies, and regulatory compliance challenges. It enables tracking and authentication of drugs throughout the supply chain, ensuring product integrity and regulatory compliance. Supply chain finance on blockchain improves cash flow and supplier payment management.
Manufacturers benefit from blockchain-based supply chain finance by optimizing working capital, streamlining supplier payments, and improving inventory management. Enhanced transparency and traceability ensure the authenticity and quality of raw materials and components.
Retailers leverage blockchain for improved visibility into supply chains, tracking goods from suppliers to stores and ensuring product authenticity. Blockchain-based supply chain finance optimizes cash flow and offers financing options to suppliers, enhancing supply chain resilience.
Blockchain enhances traceability and food safety in the food and agriculture industry. Stakeholders can track food products from farm to fork, enabling quicker recalls and reducing foodborne illness risks. Supply chain finance on blockchain facilitates financing for farmers and producers based on transaction transparency.
The logistics and transportation industry benefits from blockchain-based supply chain finance for cash flow management and operational optimization. Blockchain enhances transparency by providing real-time visibility into goods movement and automating documentation and compliance processes. Supply chain finance on blockchain enables access to financing based on transaction transparency and reliability.
Various participants play distinct roles in the ecosystem. Each participant of the supply chain stands to gain specific benefits from utilizing blockchain technology
Supply chain financing on blockchain involves leveraging blockchain technology to facilitate and optimize financial transactions within a supply chain. It enhances transparency, efficiency, and trust by recording and verifying transactions in a secure, decentralized ledger.
Blockchain improves supply chain financing by providing real-time visibility into transactions, reducing the risk of fraud, automating processes through smart contracts, and enabling secure and efficient payments between parties.
Key participants include suppliers, buyers, financiers (such as banks or financial institutions), regulators, and other stakeholders involved in the supply chain process.
Blockchain is highly secure due to its decentralized and immutable nature. Transactions recorded on the blockchain are cryptographically secured and cannot be altered, ensuring data integrity and reducing the risk of fraud or tampering.
Industries such as manufacturing, retail, food and agriculture, pharmaceuticals, logistics, and transportation can benefit from supply chain financing on blockchain. Any industry with complex supply chains and financing needs can leverage blockchain technology to enhance transparency, efficiency, and trust in financial transactions.
Spydra offers comprehensive support for Hyperledger Fabric implementation, including customized network development, smart contract development, integration and API development, deployment, and maintenance. Our team ensures a seamless and successful implementation of your blockchain solution.
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