Lecture Tsinghua x-lab open class III invited former IBM China Research Institute Shao Ling, he brought titled "block chain and traceable supply chain finance" speech to Tsinghua students and teachers.
Guest Introduction: Before IBM China Research Institute, IBM Global Distinguished Engineer. There are more than 15 years experience in building complex systems involved in the field include embedded systems, multimedia processing system, a wireless network system, networking system, a cloud computing system block chain. It has two dozen patents, published dozens of papers at international conferences, international conferences and has been invited as keynote speakers. 2017 is easy to see added supply chain management Co. chief technology officer (CTO).
The following are speeches, abstracts bacteria was revised summary of:
Application block chain in the supply chain is divided into two parts, traceable supply chain finance and credible intelligent logistics and warehousing logistics, core analysis is based on credible data and risk management block chain + of things. This sharing of content largely left the scene - traceable supply chain, which is divided into three sections, trading, financing, securitization.
Supply chain traceability financial essentially divided into three parts, rise to the three service scenario based on a trusted source of data.
+ Core business based on the core business to pay the credit supply chain finance, trade block chain portray background, intelligent closed-loop contract guarantee funds
controlled goods +-based supply chain finance effective management and control of physical assets, known as chattel mortgage financing or financing
dynamic asset ABS + , ABS-based dynamic asset management supply chain finance, asset securitization ABS that is
the main difference between the two is the former bank credit products, while the latter asset securitization, funds from investors. So how block chain applied to three scenes in supply chain finance it?
Enterprise-level block chain
In the previous article, we have introduced the origins of the relationship between the block chain, coins, chain blocks, distributed books technology in detail. Most to C terminal block chain chain projects are made public, in fact, apply to B in the inside, such as: trade, investment, cross-border payments, shipping, etc., most of Use Affiliate chain.
Features enterprise-class block chain were authorized node safe and reliable, more complex and flexible intelligent contracts, data privacy protection and more efficient consensus algorithm.
Currently, HyperLedger as one of the world's largest enterprise block chain, worldwide membership of over 250 members. The earliest Ethernet Square, in essence, is a well-chain technology, some companies currently are developing enterprise-class Ethernet technology Square.
Traceable supply chain finance
Look at the supply chain of financial products, logistics, business flow, information flow, capital flow, supply chain finance core from the perspective of financial institutions is the "four streams-one", participants are suppliers, the core business, dealers. As shown below, the financing can be divided into three main suppliers working financing, auto financing working.
1. Core business is responsible for production and procurement needs its upstream business, received orders from suppliers to receive payment process, can trigger several types of financing, order financing, factoring accounts receivable financing. When the core enterprises to extend the payment period when the shortage of funds caused by the supplier, the supplier can initiate loan applications to financial institutions in these ways.
2. Core business after production, sales to the downstream business, after the dealer to place an order, when the dealer financing capability is weak, can be carried out by financial institutions like credit bonded warehouse financing, chattel financing or warehouse receipt financing.
But seemingly perfect financing chain is still a lot of difficulties in implementation, the core issue is still the risk of credit and financial problems in the supply chain.
When logistics, business flow, information flow, capital flow, "four rate one", risk is minimized. Currently, IT systems within the enterprise, ERP system has been considered more comprehensive IT system, but the system of information between enterprises, some still rely on paper-based state transfer. There are some documents required by law must be paper, which may be a problem caused by traditional ideas, or between enterprises to build an effective information system, high cost, difficult.
For example, in the process, although the bank can see the information capital, but banks are reluctant to share information with other people's money flow, "four streams-one" landing is very difficult, especially when cross-enterprise operation.
Therefore, SME financing, financial institutions can not be trusted SMEs, high-risk funds, risk control difficult, the government can not effectively identify systemic financial risks, regulatory difficult.
What is the role of science and technology to do? The first is to reduce the risk, and the second is to increase mutual trust, confidence and strong after transaction costs low.
Case a reverse factoring mode
Standing on the perspective of financial institutions in terms of real concern to their most points, the core business of credit payments, trade. After the introduction of block chain system, which changes the two things, first, to eliminate the transfer of paper documents, because all services can be completed online. Second, there is a pool of credible data block chain products, is followed by the core enterprise ERP, the ERP is the core enterprise of synchronized once a day, synchronized to the core data pool of product inside, block chain is difficult to tamper with its features It provides a reliable pool of data.
But the key point of the whole business scenario is the difficulty still lies in the core business, ERP is the core of his data, docking is not an easy thing. In addition, business factoring mode only stay in the first-tier suppliers, it is difficult to extend.
Case two enterprises in cloud letter mode
This mode is to break a supplier's credit problems, then transfer the credit to a multi-level suppliers to go. Features are: Bank credit to the core business for the payment of unused credit, industrial turnover in the core business, divisible, can be discounted, reduce the nominal debt ratio of the core business, to circumvent the provisions of the Negotiable Instruments Law can not be split. The difficulty lies in the authenticity of the risk control multi-stage trade is difficult to confirm, payment due depends on the willingness to pay the core business, whether electronic documents can be used as basis for litigation.
Case III line "inventory + receivables" business
How to reduce the core business of the most valuable accounts receivable, in this mode the following, we are now using the model involved in a trade supply chain, can be understood as trade, but he is different from the general trade places, in the middle , supply chain companies involved in trade by providing funding for the core business downstream distributors. This intermediate, the question is how to do risk control, generally introduce physical warehouse. Which involves two trusted data pool, a warehouse in the side, in a supply chain companies.
The advantage is that the supply chain business model: rich trading patterns, including a variety of trade advances, pre-settlement, inventory financing and other financial scene +; supply chain companies involved in trade, with the right goods, in order to pay credit companies controlled goods + fashion implement risk control; core business is risk control and difficult receivables factoring traditional mode of supply chain business model is an effective supplementary means; the business scene contains controlled goods, the effective monitoring of goods valuation of goods, including breach of contract after the disposal of the goods is risk control difficulties; the block chain technology can greatly improve the speed trade settlement, and transparency and cross-verification of data also reduces the risk of the financial institutions involved.
From a financing point of view is two, one is bank financing, a direct financing from the market, in fact, the above-mentioned case, basically dependent on bank credit. The core of enterprise supply chain based ABS product, essentially the package underlying assets issued directly to investors in the exchange. As shown below:
In this scene inside the value chain of the block will be able to better reflect.
First, the party is very much
a second, related to the circulation of information complexity
Third, information transmission error rate
traditional ABS product supply chain pain points that risk management and process management, and efficient management, risk management performance: the bottom the authenticity of assets, the effectiveness of verification difficult; complex transaction structure and cash flow, making it impossible to achieve effective transmissive supervision; unable to achieve dynamic monitoring of a large number of assets, regulatory effectiveness is poor.
Process management and efficiency in the management of performance: participants involved in multi-agency underlying asset managers, brokers, law firms, banks, exchanges and other inter-agency communication and rely mainly on paper-based, inefficient, high cost, long cycle; the number of underlying assets large, screened assets, auditing, workload asset transfer contracts, and error-prone; data scattered in all parties, can not effectively achieve data association and cross-verification.
For a supply chain is concerned, first formed a business relationship accounts payable, some come out factoring companies, financial institutions do financing, factoring assets constituted once the factoring company a shortage of funds, the assets can be re-packaged, out through the issuance of asset securitization, to recover the funds constitute such a chain from trade to finance in the securitization.
From the perspective of regulatory bodies concerned, to be formed when transmissive ABS product regulation, the source of each sum of the underlying assets is particularly important, therefore an effective traceability system in which play an important role.
Traceable supply chain solutions for financial products
In the construction supply chain traceability chain when the financial block, set up a small block chain than building the whole supply chain participants to participate according to different scenarios large chain more efficient and feasible.
Therefore, based on the establishment of credible data pool of supply chain trading systems, supply chain finance and asset securitization platform to platform as one of the solutions, combined with warehouse logistics enterprises, trade companies, consisting of a transparent and visible exchange with financial institutions to process transactions can greatly build a trusted trading assets. As shown below:
Chief among them is the establishment of credible data pool.
By the data warehousing and logistics enterprises, trade and enterprise data consisting of credible data sources, data collection and transmission via the Internet of Things equipment, warehouse transportation systems, automation systems, enterprise ERP systems, production management systems, their data by encrypting data storage, access authorization and auditing, supply chain trading system established trusted data pool.
By a dynamic asset management, asset health trend analysis of the composition of the supply chain, financial asset securitization platform, the whole amount of the asset verification, dynamic management and recycling purchase, to build credible data pool.
Financial services and capital account by the formation of supply chain financing platform, the implementation of the authorization demand access to data, information loop and closed-loop monitoring of the flow of funds to achieve the funds to build credible data pool financing platform.
Credible data pool design philosophy:
Independent deployment, data pool owned by the core business all by the core enterprise responsible for operations, to ensure that corporate data does not leave the corporate control of the border. Therefore, to solve the core of enterprise risk for a data breach.
Data isolation, different suppliers of data stored in different channels, different vendors certainly do not want to see their data, prevent data leakage problem between different enterprises from the source.
Controlled exchange, all have access to data push, authorized supplier initiated, so that the core business of data "fully controllable."
Can not be tampered cut can be traced back for future reference, any calls to people required to use the operating certificate for the electronic signature data to do any reading and writing operations are recorded in the corresponding audit chain.
Divided into two chains, chain data stored data, audit chains and recorded data for all the action chain, including writing, reading, authorization, all the actions are written in the audit chain block chain solutions in the design, but the chain itself does not audit any data, the equivalent data for the traceability chain management and supply chain finance chain itself separated, and the formation of effective monitoring and privacy protection mechanisms.
2C at the end of the application, the large enterprises to master the core data, the fact that the transaction data has been accepted at the end 2B, most companies will not be handed over to a centralized core data platform to do, making it easier to form a distributed transaction credible network, composed of the chain, such as trade chain, finance chain, ABS chain of trade relations. In the formation of trade relations, the continuation of the relationship of trust established under the previous line to line, establish a system of trust between enterprises through the characteristics of the block chain itself.
to sum up
Supply chain finance scenario involves multi-how to ensure data authenticity, accuracy and transparency, is the core of the digital supply chain of financial risk control. We believe that the data consistency block chain, non-tampering and other characteristics, can make it possible to build a trust relationship between the parties based on the data, and therefore gave birth to a large number of new inter-enterprise applications.
Block chain technology, particularly in support of mature cross chain block chain technology, making it possible to distributed trusted transaction network. In the B2B market, as companies focus on the concerns of private data, distributed a trusted transaction network provides a new trading platform, to avoid the monopoly of the traditional centralized electronic business platform data problems.
Q & wonderful
Q:
block chain from a technical point of view, is more interested in the application and development of mature technologies, the block chain applications in supply chain finance, now the core of the difficulty in what areas?
A: From the bottom block chain technology to solve supply chain finance issues for more understanding of the business, the existing foundation HyperLedger on how to build applications to solve practical problems. Middle of this process itself does not have much technical challenges.
In the course of our practice, while trying to build a multi-chain cross chain and there are some innovative, this innovation is not a simple technological innovation, there are still many challenges behind the concept. Technical challenges can be solved step by step. Therefore, the current biggest difficulty lies in the concept of the problem, is that we believe it or not in the future network-based block chain is distributed, if we believe the future is a distributed, multi-chain cross chain network structure, then the business between data sharing, trading patterns are changing dramatically.