Throughout the development of the human world, it is basically from point to line, from line to surface, and from surface to body. In other words, everything needs to be controlled from one point to the whole. This is the role of supply chain finance, allowing people to fundamentally control the development of financial risks.

The current supply chain finance is that banks focus on core enterprises to achieve the purpose of managing the capital flow and logistics of upstream and downstream small and medium-sized enterprises. Such information, the financial services that control the risk to the minimum, so as to fully control the financial risk.

Supply chain finance is an innovative financial service that appears to protect the interests of investors. Its appearance is the gospel of many small and medium-sized enterprises, which can solve most of the financial problems; as a financial innovation, it can solve the high cost of supply chain finance caused by global outsourcing activities, as well as the bottleneck of supply chain node capital flow Problems; alleviate the increasingly prominent financing difficulties of small and medium-sized enterprises, especially for developing countries, where the growth rate of emerging economies is relatively high, and supply chain finance has become an indispensable financial service for the development of contemporary financial markets.

In the traditional financing model, the relationship between banks and supply chain members is relatively loose, but for the loan part, it still supports core enterprises. In short, companies with competitive advantages have more say. After all, core companies can dominate trading conditions and habits, but banks are not very friendly to suppliers and first- and second-tier distributors.

In the supply chain financing model, the relationship between banks and supply chain members is relatively close. In addition to support measures for core enterprises, banks have corresponding preferential support policies for suppliers and distributors. Financial institutions and banks can meet the financial needs of member companies in the chain through risk assessment and comprehensive and diversified inspection standards.

At present, supply chain finance is not perfect enough. On the road of supply chain finance's development, perhaps the participation of emerging technologies will make its development broader. Blockchain is an important technology to fill the financial loopholes in the supply chain.

Before filling the financial loopholes in the supply chain, the blockchain is the first to contribute to the development of the supply chain, which can make the supply chain more assured, fair and transparent.

Consumers' trust in brands is very important. Once consumers have trust in a brand, they will have continuous purchasing power for the brand's products, which is the inertial thinking of human beings. However, sometimes it is precisely because of this "trust" inertial thinking that it is more "dangerous".

In May of this year, a mother and baby store in Yongxing County, Chenzhou, Hunan Province sold protein solid drinks as infant milk powder to deceive consumers, causing many children to fall ill. The parents found that they had given their children a kind of "milk powder" called Beminamine. A small can of 400 grams of this product costs nearly 300 yuan, and the price even exceeds that of many imported baby milk powder. But this product is a solid drink. Unscrupulous doctors and manufacturers sell solid drinks as milk powder, which makes people shudder.

These parents have tried their best to give their children the best things, but they still can't escape such a "disaster". Sadly, it is the trust that consumers have in brands and the trust in doctors that creates trust in the commodity supply chain.

To avoid this kind of inertial thinking, people need to jump out. Real logistics information is one of the important prerequisites for supply chain finance. Blockchain can make such a supply chain open and completely transparent. The distributed ledger of the blockchain determines that it can exist as a shared and secure transaction record method. Blockchain has its unique characteristics in tracking food safety and data security. Making supply chain data publicly available, revealing the product process for every participant, is one of its main contributions.

For supermarkets, the blockchain is definitely a perfect way to make every vegetable that enters people's homes absolutely safe. Allowing users to understand the source of ingredients and how they are produced can reassure users about every step of the food journey. Avoid the "big-headed doll" incident from the root, and kill the bad behavior of unscrupulous traders in the cradle.

In traditional supply chains, blockchain can also be used by parts suppliers to automatically replace parts. For any machine, such as automobiles, televisions, and mobile phones, there may be a problem that parts suppliers may replace it with inferior products that are different from the model specified by the orderer and have a lower cost. The embankment of a thousand miles is destroyed by ant nests. Once bad commodities have an impact, the damage will be difficult to rule out and unpredictable.

In the traditional supply chain, regulatory agencies and terminal enterprises simply cannot achieve interlocking supervision, so the application of blockchain technology is essential. The blockchain can calculate the hash value of the delivery note with a digital signature that can only be implemented by a regular contract manufacturer, and record it in the blockchain, which can be used as a standard for inspection and prevent the use of forged Delivery note replacement.

If absolute transparency in the supply chain can be achieved, it will solve the huge market pain point of authenticity verification of supply chain assets and transactions.

Supply chain finance is an important part. Why do banks trust core companies? Because core enterprises generally have the ability to control goods or adjust sales. Therefore, the bank "does not trust" the distributors. When the sales ability is not recognized, financing will be difficult. But even a trusted first-tier supplier or core enterprise needs to sign back the "creditor's rights assignment agreement". If they don't sign back, the bank will not be willing to grant credit.

If supply chain finance can be combined with blockchain, then the credentials used in supply chain finance and the documents required by banks can be uploaded to the chain. And put all the first-level and second-level dealers, suppliers and core enterprises on the chain. The system can trace the transactions of each node, outline the full flow chart of the transaction with visibility, and improve the trust of the bank. Core enterprises can also do Smart Guarantee. Blockchain technology can provide a good transaction basis for the financing of suppliers above the second level of supply chain finance.

On the other hand, for small and medium-sized enterprises, banks should also pay attention to the authenticity of their transaction data in addition to testing whether they have the ability to repay. ERP intelligent systems are currently used in core enterprises, so banks will also conduct investigations on ERP manufacturers. After all, the ERP systems of many large enterprises have complex structures, and the possibility of tampering with transaction information is relatively small. Even so, banks are also worried that core companies will collude with suppliers or distributors to tamper with transaction information, which will require a lot of manpower and material resources to verify.

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