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A Simple Survey for Supply Chain Finance Risk Management with Applications of Blockchain

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Book cover Stochastic Models in Reliability, Network Security and System Safety (JHC80 2019)

Part of the book series: Communications in Computer and Information Science ((CCIS,volume 1102))

Abstract

Supply chain finance (SCF) is an important solution that optimizes cash flow in order to lower financing costs and improve business efficiency especially for small and medium-sized enterprises (SMEs). Risk management is the essential requirement of SCF. In recent years, the digital economy is developing rapidly worldwide and holds huge potential for entrepreneurs and SMEs. In the digital economy scenario, digitalization of supply chains is also becoming increasingly dynamic. Blockchain technology is regarded as a potential means of digitalization for supply chains and could play an important role in supply chain finance risk management. This paper first reviews the literature of supply chain finance risk management and provides some disadvantages of traditional supply chain finance risk management. Then we survey the new perspective for supply chain finance risk management based on blockchain technology. In particular, blockchain can increase the information transparency of the supply chain, thereby reducing the credit risk of SMEs financing and the operational risk in SCF. Categorization and analysis of the literature, it provides an important perspective for future research of supply chain finance risk management based on blockchain technology in the era of digital economy.

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Acknowledgement

The authors particularly acknowledge the financial supports from the Research Base of Beijing Modern Manufacturing Development at Beijing University of Technology and the Research Center of Blockchain at Beijing University of Technology. Jian Li was supported by National Natural Science Foundation of China under grant Nos. 71932002, 71571010 and by Great Wall Scholar Training Program of Beijing Municipality under grant No. CIT&TCD20180305. Yongwu Li was supported by the Beijing Natural Science Foundation under Grant No. 9192001.

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  1. School of Economics and Management, Beijing University of Technology, Beijing, 100124, China

    Jian Li, Yajing Wang, Yongwu Li & Quan-Lin Li

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  1. Jian Li
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Correspondence to Yongwu Li .

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  1. School of Economics and Management, Beijing University of Technology, Beijing, China

    Quan-Lin Li

  2. School of Management Science and Engineering, Central University of Finance and Economics, Beijing, China

    Jinting Wang

  3. School of Economics and Management, Beijing University of Technology, Beijing, China

    Hai-Bo Yu

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Li, J., Wang, Y., Li, Y., Li, QL. (2019). A Simple Survey for Supply Chain Finance Risk Management with Applications of Blockchain. In: Li, QL., Wang, J., Yu, HB. (eds) Stochastic Models in Reliability, Network Security and System Safety. JHC80 2019. Communications in Computer and Information Science, vol 1102. Springer, Singapore. https://doi.org/10.1007/978-981-15-0864-6_5

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