Supply Chain Financing Tied to Material Delivery

Move from 60-90 day terms to near-instant settlement upon verified delivery. Smart contracts automatically release payment when IoT sensors or digital proofs confirm goods receipt. This improves supplier relationships and can secure early payment discounts of 2-5%, directly impacting your cost of goods sold.

• Example: A manufacturer reduces its DPO (Days Payable Outstanding) while offering suppliers faster cash flow, strengthening the entire vendor ecosystem.

Eliminate invoice fraud and reconciliation headaches with a single source of truth. Every material movement—from shipment to customs clearance to warehouse receipt—is recorded on an immutable ledger. This creates an auditable trail that reduces disputes by over 70%, slashing administrative costs and legal overhead.

• Real-World Impact: Major retailers using blockchain for provenance have seen invoice reconciliation times drop from weeks to hours, freeing up significant finance team resources.

Turn your supply chain into a financing platform. With verifiable delivery data, financial institutions can offer dynamic discounting or provide lower-cost financing directly against in-transit inventory. This reduces reliance on expensive letters of credit and can improve your company's working capital ratio by providing earlier access to cash.

• ROI Driver: A global logistics firm reported a 15-20% reduction in financing costs by using blockchain to securitize invoices for lenders.

Automate compliance for regulated industries (e.g., pharmaceuticals, food). Blockchain provides a tamper-proof chain of custody that simplifies reporting for regulations like the Drug Supply Chain Security Act (DSCSA) or FDA traceability rules. Automated audit trails can cut compliance preparation costs by up to 30%.

• Example: A food conglomerate uses sensor data logged on-chain to instantly generate reports for contamination recalls, reducing risk and protecting brand value.

De-risk your supply chain with conditional, performance-based financing. Financing is only triggered upon proof of delivery, protecting buyers from paying for undelivered goods and protecting suppliers from non-payment. This shared risk model builds trust and enables trade with new, smaller suppliers who lack established credit.

• Business Benefit: Enables just-in-time manufacturing with greater confidence, reducing safety stock inventory costs by providing financial certainty tied to physical events.

We identify a single, high-value material flow (e.g., specialty steel, critical electronics) and create its digital twin on a private ledger. Each shipment is represented as a unique, non-fungible token (NFT) containing immutable data: purchase order ID, batch number, quality certifications, and GPS waypoints. This creates a single source of truth, eliminating invoice-dispute delays that typically stall payments for 60+ days.

• Example: A Tier-1 auto manufacturer tokenizing cobalt shipments, reducing reconciliation time from 3 weeks to 48 hours.

Smart contracts are programmed to release financing automatically based on verified delivery events, not paper invoices. When the IoT sensor on a container or warehouse scan confirms receipt, payment to the supplier is initiated instantly.

• Key Benefit: Converts working capital cycles from 90+ days to near real-time. Suppliers get paid upon proof-of-delivery, improving their cash flow and strengthening your supplier network.
• ROI Driver: Your finance team automates a high-volume, manual process, reallocating FTEs to strategic analysis.

With a trusted, automated settlement layer in place, you can offer and manage early payment discounts programmatically. Suppliers can choose to receive payment immediately upon verified delivery at a small, pre-negotiated discount, funded either from your treasury or integrated third-party lenders.

• Real-World Impact: A global retailer achieved a 1.2% annualized return on cash and strengthened relationships with key suppliers by offering this liquidity option.
• Outcome: You optimize your balance sheet by turning accounts payable into a profit center.

The pilot delivers a proven playbook and ROI case. We then integrate the blockchain layer with your existing ERP (SAP/Oracle) and TMS systems via APIs, extending the model to other materials and geographies. The immutable audit trail also streamlines compliance for regulations like the Uyghur Forced Labor Prevention Act (UFLPA).

• Scalability: The model can expand to encompass sustainability-linked financing, where lower-carbon shipments automatically qualify for better rates.
• Final Outcome: A resilient, transparent, and financially optimized supply chain network.