Manufacturing and Blockchain

Manufacturing and Blockchain

  Here’s an example of blockchain use: Xiaomi supply chain finance. Xiaomi is a comprehensive Chinese consumer electronics manufacturer with a global presence in smartphones and other consumer electronics. The production and sales of products are carried out in the global supply chain, bu […]

 

Here’s an example of blockchain use: Xiaomi supply chain finance.

Xiaomi is a comprehensive Chinese consumer electronics manufacturer with a global presence in smartphones and other consumer electronics.

The production and sales of products are carried out in the global supply chain, but in the current supply chain, data coordination and transparency were insufficient.

This made it difficult to improve supply chain financing, such as banking and factoring.

Therefore, by combining the existing SCM and ERP systems with data sharing through the blockchain, we have improved the transparency and reliability of transactions.

 

 

What is Supply Chain Finance?

Supply chain finance refers to the optimization of the supply chain, including not only the physical management of goods but also the flow of funds, such as transactions with financial institutions and cash flow.

In this case, Xiaomi is optimizing its existing supply chain management, including financing, by incorporating the flow of money from banks.

 

Block Chain Resolution

The blockchain stores and shares a set of information, such as “Purchase Orders (PO), Advance Shipments (ASN), Shipments (Gr), Payments”.

This information is shared with banks to enable quick financing.

Another feature of the system construction is that supply chain financing is being built in addition to the existing supply chain management (ERP systems using SAP, etc.).

This has significantly reduced the cost of system construction.

 

The integration with the existing SCM is made possible by using Azure’s ability to facilitate system integration (Logic Apps, PowerApps, Microsoft Flow, etc.).

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