Cost-benefit analysis of a blockchain-based supply chain finance solution
Name
1119538700-MIT.pdf
Size
4.37 MB
Format
Adobe PDF
Checksum (MD5)
ad27a3513c41aeaa1ebd9004d09e4319
Author(s)
Panuparb, Patara.
Advisor(s)
Inma Borrella and James Blayney Rice.
Date Issued
2019
Publisher
Massachusetts Institute of Technology
Abstract
During the past few years, blockchain technology has shown great potential to disrupt existing supply chain finance solutions, as it could increase the efficiency of invoice processing and provide a more transparent and secure transactions. However, the costs and benefits of implementing blockchain technology in supply chain finance for involved parties are still unclear, since research on the topic is scarce. This thesis explores the net value of implementing blockchain technology in supply chain finance arrangement by using cost-benefit analysis. A cost-benefit model and the operating processes of traditional and blockchain-based supply chain finance solutions are proposed and applied to a real-world case study. We prove that blockchain technology increases the total net benefit among involved parties participating in the supply chain finance arrangement as a result of improved efficiency of invoice processing. We also find that suppliers would benefit from blockchain-based supply chain finance if the benefit from the unlocked working capital outweighs the cost of the platform fee. Another finding is that the buyer does not benefit from the technology in terms of unlocked working capital.
Description
Thesis: M. Eng. in Supply Chain Management, Massachusetts Institute of Technology, Supply Chain Management Program, 2019
Cataloged from PDF version of thesis.
Includes bibliographical references (pages 48-49).
Subjects
Supply Chain Management Program.
MIT Department
Massachusetts Institute of Technology. Supply Chain Management Program
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