Supply chain finance & blockchain technologies: driving forces of circularity, transparancy and disintermediation
Blockchain technologies are an important facilitator for “Digital Goods Flow Passports” (DGPs). A DGP is a register which records all relevant events of a goods flow item, all the way from its origination (the seed) to the end of the Supply Chain. In principle, the DGP contains “anything anyone would ever want to know about the goods flow”. The DGP is as it were the digital representation of the goods flow, continuously interacting with the digital environment (ERP’s, IoT devices, hand held input terminals, etc.) of the “real” goods flow.
DGPs form the basis for many stakeholder applications like consumers (provenance applications), chain participants (process optimization, production planning, etc), certification organizations, food safety authorities, etc.
DGPs also form the bases for “Supply Chain Finance”, a new financing concept where a financier finances the entire goods flow, starting at the very origin, paying every player in the chain for the value added and finally recouping the money at the very end of the chain. This financier would actually “own” the goods flow, thus eliminating working capital from the balance sheets of all chain participants.
About Pieter Klapwijk
Pieter Klapwijk is Professor in Supply Chain Economics at Nyenrode Business University.