Isn’t the thought of transferring the funds to your business partner in any other country in real time without worrying about the fraud or settlement delays is fascinating? What if it becomes possible to track an orange back to the farmer within some seconds and to see every stop it covers in the supply chain between farm and the grocery store? If you are looking for a technology like this, then Blockchain makes it feasible.
Blockchain is a transformative technology that is based on a shared ledger, which is distributed and enables the untrusted parties to exchange and transact value securely.
Current Supply Chain Finance Process
If we talk about the present supply chain finance process then, we will find that there are various loopholes in the entire process. The financing from Bank is based on the invoices, which get approved by the manufacturer. This approval process is quite lengthy as a huge exchange of the information is needed to complete it. What makes it more annoying is the paperwork, which is the part of the whole process and ultimately leads to:
- Postponements in the approvals that consequently delays the disbursal of the funds.
- Complications in the reconciliation of the Invoices.
- More chances of forged/fake/fraudulent invoices getting financed.
How can Blockchain Help in Supply Chain Finance?
As Blockchain technology has the ability to provide a single trusted platform hence, it can increase the speed of the work and enable to execute a process in a secure way. Some factors which make Blockchain for Supply Chain Finance are:
· Fast Approvals: All the approvals can simply be taken on Blockchain platform itself in a quick manner as all stakeholders of Supply Chain Finance procedure are available on the platform.
· No Chance of Forgery: Once the invoices are uploaded on the platform, they immediately get tokenized. Hence, it becomes impossible to edit them or to do any kind of forgery.
· Automation: The platform based on Blockchain can reconcile the invoices by itself, removing the manual intervention. In addition, it is possible to credit the funds to the supplier’s account in the form of cryptocurrency that is almost instant.
Inevitably, implementation of Blockchain technology can bring any business a step ahead. However, it is important to implement it intellectually with the help of a team, which has the complete knowledge about the proper implementation of Blockchain technology. Sofocle is one of the competent organization that has expertise in providing the Blockchain services. In addition, it has created its own solution, namely sofoCap, which is an award-winning supply chain solution.
If you are also looking for a Blockchain development company that can streamline your business, then you may contact Sofocle at success@sofocle.com
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