Sustainable B2B E-Commerce and Blockchain-Based Supply Chain Finance
Abstract
:1. Introduction
- -
- increase revenues by financing working capital in the supply chain for their customers;
- -
- participate in the entire supply chain;
- -
- sell additional products and services (such as steadily promoting their currency exchange services) to other operators in the supply chain and thus increase their customer base.
2. Materials and Methods
2.1. B2B E-Commerce Supply Chain Financing
2.2. Blockchain as a Way to Create a Network of Market Participants
2.3. Base of Practical Research and Its Design
- Logistics Efficiency:
- Logistics Efficiency (El) = Items Delivered with Incidents (Ndl) × Accurate deliveries (Nl)
- Digital Documentation Efficiency:
- Digital Documentation Efficiency (Eed) = Documentation Defects (Ned) × Data Transmission Speed (Ns)
- Overall Supply Chain Efficiency:
- Overall Supply Chain Efficiency = El × Eed
3. Results
- Logistics Efficiency (El) = 0.8 × 0.92 = 0.74 (1)
- Digital Documentation Efficiency (Eed) = 0.82 × 0.91 = 0.75 (2)
- Overall Supply Chain Efficiency (Esch) = 0.74 × 0.75 = 0.56 (3)
- (1)
- The blockchain registry will work as a recording system. Alibaba’s platform will thus become a single reliable source for both suppliers and buyers. Such a platform will provide automatic tracking of movement of money and goods along the supply chain and record of each change;
- (2)
- All participants in the chain will be known and registered in the blockchain network. All users will have access to this information. The supply chain financing process will become more efficient, as all interested parties will be able to notice and eliminate the problems of interaction and management;
- (3)
- All direct participants in the management, organization, control, and implementation of processes related to the movement of money and goods along the chain will gain access to data on the blockchain and the right to change them;
- (4)
- Evidence and securities obtained for operations, for example, a “bill of lading”, will be digitized and recorded which will create conditions for the prevention of illegal seizure of property rights;
- (5)
- The platform interface will be adaptive for the user which will allow the platform to subscribe to external events and transactions related to the financing chain of interest, for example, for events such as “money sent” or “money received”.
- -
- strengthening the company’s competitive position in the market;
- -
- improving existing operational processes;
- -
- forming a new “standard of work” in the industry (since most of the operations go through Alibaba);
- -
- forming additional intangible competitive advantages of the company in the market through increased user trust in the company.
4. Discussion
- Free member—insecure service;
- Gold supplier—100% guaranteed supplier;
- Assessed supplier—there is a check of all licenses and documents.
5. Conclusions
Author Contributions
Funding
Acknowledgments
Conflicts of Interest
References
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Banking Group | Capital, bn USD |
---|---|
JP Morgan | 388 |
ICBC | 330 |
Bank of America | 315 |
China Construction Bank | 270 |
Wells Fargo | 268 |
HSBC | 198 |
Agricultural Bank of China | 200 |
Citi | 183 |
Bank of China | 180 |
Ant Financial | 150 |
China Merchants Bank | 122 |
Platform | Finance Comparison | Global Ranking, % | SME Loans | Cognitive Services |
---|---|---|---|---|
Alibaba | 1.2 tn MMF, Ant Financial, Insurance, Payments, Money Market Found, SME lending, personal loan, credit rating, investment management. Strongest FinTech (financial technology) company. Amazon too small | 41%—Leader of Asia | SME loans—Ant SME Service | Customer service Al, image recognition, voice-to-text conversion, real-time transaction services, gaming |
Amazon | 3 bn SME banking, problems in the UK insurance market. Slow development, considering a large data source | 47%—Leader of US and global | USD 3 bn SME loans (Amazon lending) | Image, face, voice recognition, NLU (Natural-language understanding), video understanding/analysis |
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Lahkani, M.J.; Wang, S.; Urbański, M.; Egorova, M. Sustainable B2B E-Commerce and Blockchain-Based Supply Chain Finance. Sustainability 2020, 12, 3968. https://doi.org/10.3390/su12103968
Lahkani MJ, Wang S, Urbański M, Egorova M. Sustainable B2B E-Commerce and Blockchain-Based Supply Chain Finance. Sustainability. 2020; 12(10):3968. https://doi.org/10.3390/su12103968
Chicago/Turabian StyleLahkani, Marjaneh Jahangiri, Shouyang Wang, Mariusz Urbański, and Mariya Egorova. 2020. "Sustainable B2B E-Commerce and Blockchain-Based Supply Chain Finance" Sustainability 12, no. 10: 3968. https://doi.org/10.3390/su12103968
APA StyleLahkani, M. J., Wang, S., Urbański, M., & Egorova, M. (2020). Sustainable B2B E-Commerce and Blockchain-Based Supply Chain Finance. Sustainability, 12(10), 3968. https://doi.org/10.3390/su12103968