The blockchain infiltrates the 78 trillion supply chain market, and listed companies with a total market value of 640 billion yuan are in the process.

How big is the supply chain market space? According to Chu Xueyu , director of the Modern Logistics Research Center of Shanghai University , the current supply chain market in China is about 70 trillion yuan, and the supply chain market is about 8 trillion yuan. Therefore, the supply chain market has at least 78 trillion market space.

With the development of emerging technologies such as blockchain and artificial intelligence, business opportunities in this huge market are gradually being discovered. On September 20th, the blockchain sponsored by the China Logistics and Purchasing Federation Blockchain Application Branch boosted the digital supply chain. The 4th “Double Chain Dance” National Supply Chain and Blockchain Integration Innovation Elite Forum Bit learned that many listed companies from Jingdong, Suning, Jiangsu Bank, Lenovo, TCL, Zhongan, Yi Yatong and so on used the blockchain for supply chain management directly or indirectly. The total market capitalization of these listed companies exceeds 640 billion yuan, which shows that the blockchain is hot in the supply chain. These companies are based on the entity, application-oriented, and constantly explore the landing of blockchain technology in the industry, has achieved initial results.

Jingdong: Open up the underlying capabilities, not confined to ecological construction

Founded in 1998, Jingdong is one of the earliest e-commerce companies in China to build a logistics system. Jingdong was listed in the US in 2014. In 2019, Q2 had a total revenue of 150.3 billion yuan. The total number of employees was close to 180,000, which indirectly led to more than 13 million people, which effectively promoted the development of the physical industry. At present, Jingdong City has a market value of 320.061 billion yuan.

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Jingdong Logistics is a trump card that Jingdong once proud of. From the beginning of serving Jingdong to the current independent service for more businesses, it has established six major logistics networks at home and abroad. Jingdong Logistics is also exploring the blockchain's landing plan for product traceability, logistics tracking, credit enhancement, and logistics finance.

Cong Qing , head of Jingdong Logistics Blockchain products , believes that the current application of the blockchain is mainly to solve the original accounting method. The original technology uses the interface to realize the system docking of the entire supply chain upstream and downstream. The data does not pass the credit well, and the credits involved are all applied to paper documents, including endorsements by third parties. Blockchain can replace these traditional means to solve supply chain coordination problems while reducing credit costs.

However, the current core enterprises' use of blockchain technology mainly focuses on the alliance of the enterprise itself. Cong Qing pointed out that this model, although built a chain of alliances, established several nodes to book and write data, still surrounding the traditional centralized business model. Cong Qing hopes to directly link the participation of the entire chain to the C-end customers, so that real value transfer can be realized on the blockchain. Therefore, in addition to doing its own ecology, Jingdong Logistics is still exploring how to truly open up the underlying capabilities.

Suning: Blockchain has significantly promoted group operations

As a private enterprise founded for 29 years, Suning's industrial layout is very clear. At present, Suning Tesco has been formed (total market value of 98.5 billion yuan), Suning Logistics, Suning Finance, Suning Technology, Suning Real Estate, Suning Wenchuang, Suning Sports, Suning Invest in the pattern of coordinated development of the eight major industrial sectors. The Group's total revenue is 602.5 billion yuan, directly providing 250,000 jobs for the society, which greatly promotes the development of the physical industry.

Babbitt noted that in the 2018 annual report, Suning disclosed the application progress of the blockchain in the financial sector . In the forum of the day, representatives of Suning Logistics, Suning Technology and Suning Finance published their views on the blockchain.

Yao Kai , executive director of Suning Logistics Group, believes that the blockchain is not only a technology, but also an idea, representing a value of fairness, transparency, trust and cooperation. Many difficult questions of trust have begun to answer. Taking the logistics supply chain as an example, the supply chain industry often involves many entities, including logistics, capital, information, etc. These entities have a large number of complex synergies and communication. In the traditional model, different entities maintain their own supply chain information, which is seriously lacking. Transparency creates higher time and money costs. Once there are problems such as counterfeiting and fraud, it is difficult to trace and deal with. Through blockchain technology, all aspects can obtain a transparent and reliable unified information platform, which can view the status in real time, reduce logistics costs, and trace the entire process of logistics production and delivery, thereby improving the efficiency of supply chain management. When disputes occur, Proof and tracing will also become clearer and easier.

Yao Kai pointed out that Suning attaches great importance to the research and application of blockchain technology. It has established blockchain research and application organization in Science and Technology Group, Logistics Group, Jinfu Group and Logistics Group, and the research and application of blockchain technology. It has already played a significant role in promoting the various industries, operations and development of the Group. In the next stage, Suning will further increase the investment in blockchain research and application, and accelerate the promotion and landing of blockchain technology in various industries of the Group.

Feng Yangyue, a senior researcher at the Senior Research Institute of Suning Financial Research Institute , believes that the blockchain is like a gimmick, and the supply chain is like a piece of land. The confidentiality, security, privacy and other characteristics of the blockchain are the point where the hoes go to dig. In March of this year, Suning Finance successfully launched the blockchain + IoT car library platform, providing integrated financial solutions for vehicle inventory supervision based on software and hardware integration control. The program is based on the Internet of Things warehousing vehicle supervision technology, recording vehicle networking data on the blockchain, clarifying vehicle ownership, reducing false repeat pledge financing behavior and unnecessary business disputes.

Shao Junbao, Director of Supply Chain R&D Center of Suning Technology Group, introduced the practical application of blockchain in the traceability of commodities. Taking Australia Navel Orange as an example, it is first necessary to determine the institutions involved in the business. Each business organization initiates the application and qualification of the chain, and the Suning platform is qualified. After reviewing and reviewing, the account opening, authorization and transmission of the key will form a complete traceability chain. Throughout the product traceability process, each business organization can query related business information through the blockchain book in the region, and also through Suning for logistics tracking, marketing management, anti-counterfeiting tracking and quality monitoring. Consumers can scan the source code information, query the origin, picking time, inspection and quarantine institutions, time of arrival in the country and other commodity information, to dispel the doubts about the authenticity of the goods.

Bank of Jiangsu: Banks are willing to invest heavily in the blockchain

Bank of Jiangsu officially opened on January 24, 2007. The company is headquartered in Nanjing, Jiangsu Province. On August 2, 2016, it was listed on the main board of the Shanghai Stock Exchange. By the end of 2018, it had total assets of 1.93 trillion yuan and more than 14,000 employees. At present, the total market value is 78.516 billion yuan.

Bank of Jiangsu is a bank with relatively positive blockchain technology among A-share listed banks. Previously, Babbitt published an article entitled “The semi-annual report of 33 A-share listed banks: the blockchain is worth 100 billion market capitalization banks ”. Bank of Jiangsu has used the blockchain for export receivables financing business, and has landed 25 “One Belt, One Road” projects. The overseas projects involve nearly 20 countries and regions along the “Belt and Road” in Asia, Africa and Europe.

Shi Chujiang , general manager of the Bank of China's Banking and Trading Department, believes that the role of the blockchain is to solve information asymmetry and traceability. As long as there are application scenarios, cost investment is not a problem, and banks are willing to invest. Shi Chujiang took the pledge of movable property as an example. As early as 2017, Jiangsu Bank launched the “Internet of Things pledge” financing online project in the country. Based on the core technology of the Internet of Things, it obtained real-time information on pledges of enterprises and accurately solved the pain points of movable property. Full online operation to support the development of physical enterprises with safer and more convenient financing services. This model reduces the financing cost of small and medium-sized enterprises from 12%-15% to 6%, while the circulation speed is very fast.

With the increase in the volume of lending, the Jiangsu Bank's risk control department raised a question: How to ensure the data of the cooperation platform is credible? Therefore, Jiangsu Bank began to explore the use of blockchain technology to solve the problem of unrealistic supply chain data and information asymmetry in the transmission process. At the same time, Jiangsu Bank has also developed a supply chain cloud platform based on the blockchain, which can not only transfer the credit of the core enterprise to the supplier, but also can flow indefinitely. According to Shi Chujiang, the bank's movable property pledge business this year is expected to reach 10 billion.

Lenovo: Blockchain drives digital transformation of supply chain

Founded in 1984, Lenovo Group has a total of 42,000 employees. In 2018, Lenovo Group's revenue was 97.1 billion yuan, ranking 16th among the top 20 Chinese manufacturing companies. At present, the total market value of Lenovo Group is 58.8 billion yuan.

Zhang Liang , Chief Solution Architect of Lenovo Group, introduced how the blockchain can be used for enterprise supply chain management.

Throughout the Lenovo supply chain, there are 2,000 partner suppliers, 36 factories for parts manufacturing, 51 delivery centers, and products sold in more than 170 countries, serving 29,000 customers worldwide. Behind the data is a complex supply chain network. How to optimize the chain and create an efficient and timely delivery of supply chain collaboration network becomes a difficult problem.

To this end, since 2014, Lenovo has initiated the digital transformation of the global supply chain. In order to visualize and efficiently stream information, Lenovo introduced the blockchain into supply chain coordination in 2017, and has invested more than 600 million yuan.

Based on the blockchain, Lenovo created a supply chain pilot project for the “Buy/Sell” scenario, which was launched in March 2018. The project is a shared account book with Lenovo as the core enterprise, which solves the problems of electronic procurement and order information coordination between suppliers and distributors. In order to solve the data privacy problem, the project manages the transaction rights, ensuring that the transaction data is shared, and the data not participating in the transaction is private.

Based on the pilot project, Lenovo subsequently launched the “B-Connected” supply chain solution. This solution is divided into five layers, the bottom layer is the infrastructure layer supported by the server / cloud. The upper layer is the blockchain frame layer, supporting the blockchain LeChain developed by Lenovo and the fabric of HyperLedger. The third layer is the blockchain service layer, which contains privacy protection and alliance management modules. The second layer is the interface layer, which provides SDK and API interfaces as well as BaaS components. The top layer is the service layer for specific scenarios and industries.

Zhang Liang believes that the marketing cost of the blockchain is lower than that of artificial intelligence and big data, and it takes almost no effort to introduce the benefits of the blockchain to customers. In addition, Zhang Liang also believes that enterprises with more ecological resources are more likely to land in the alliance chain.

TCL: Reduce financing costs for supply chain finance to 6%

TCL was founded in 1981. In addition to the well-known TCL Group (market value of 51.218 billion yuan), there are four listed companies. The Group has more than 75,000 employees, and has sales organizations in more than 80 countries and regions around the world, with sales outlets of 40,000, and has passed the “four supply chains” (product design and manufacturing chain, logistics supply chain, quality assurance chain). , product creation and support chain), to achieve efficient allocation of global resources, business in more than 160 countries and regions around the world.

TCL Simple Exchange is a financial technology company incubated by TCL, which aims to solve the problem of financing difficulties and financing for small and medium-sized enterprises. Thanks to the accumulation of TCL, Simple Convergence has inherent advantages in industry and finance. Since its launch in 2015, the number of registered companies on the platform has reached 14,545, with a cumulative transaction volume of 297.3 billion yuan. The accumulated lending amount is 39.6 billion yuan, and the overall financing cost is below 6%.

According to Zhong Hongmin , TCL's simple CTO, the role of blockchain in supply chain finance is as follows: First, the interconnection of systems. In the traditional supply chain financial model, there must be an open interface between the two systems. The blockchain is based on a P2P network. Any system that interfaces with a blockchain interface can generate data. Second, quick verification. For example, the core enterprise stores some data in the blockchain, and the data obtained by the factoring company from the blockchain can verify whether the data comes from the core enterprise first-hand information. Family.

Zhongan: Blockchain realizes policy assetization

Zhong An Insurance was established in 2013. As a result of the establishment of the shareholders behind the emergence of Alibaba's Ma Yun, China's Ping An Ma Mingzhe, Tencent's Ma Huateng figure, the "Three Horses" aura shines. In the month of 2017, Zhongan Insurance was listed in Hong Kong and currently has a total market capitalization of 25.822 billion yuan.

Zhongan Technology is a wholly-owned subsidiary of Zhongan Insurance, focusing on cutting-edge technology research such as blockchain, artificial intelligence, big data, and cloud computing. Earlier, Babbitt wrote "The five-year premium has increased by 832 times. Can the blockchain help Zhongan Insurance to take it to the next level?" "There has been a special analysis of Zhongan Technology's exploration on the blockchain.

Yang Sheng , deputy general manager of Zhongan Technology , said that Zhongan Technology is currently exploring the application of blockchain in supply chain finance around insurance ecology. For example, in order to solve the problem of capital turnover of brokerage companies, Zhongan Technology has developed a blockchain-based supply chain platform to reduce the daily financing costs of brokerage companies from 10,000 to 10,000. For example, in order to solve the problem that the information asymmetry between the two parties in the reinsurance industry causes moral hazard and the low level of transaction informationization causes operational risks, Zhongan Technology uses the blockchain for the reinsurance market and realizes the sharing and exchange of reinsurance data at low cost.

Yi Yatong: Using blockchain to increase credit for the 20 trillion chemical market

Founded in 1997, Yi Yatong has landed in A-shares 10 years later and has the title of “the first share of the A-share supply chain”. The company's latest market value is 9.457 billion yuan. According to the 2018 Annual Report, Yi Yatong has an operating income of 70.1 billion yuan and a total of 16,000 employees.

Xu Xiaopeng, vice president of the industrial raw materials platform of Yi Yatong Group, introduced the effect of blockchain technology on the business of increasing credit with the chemical industry. Chemical industry is a relatively segmented field with a market space of 20 trillion yuan. It is closely related to our life. People eat, wear, live and use are inseparable from chemical industry. Many small transportation companies in the chemical supply chain system, although they are shipping goods to enterprises every day, usually only half a year before they are settled, and cash flow can't be eaten.

Yi Yatong and Nanjing Bank jointly built a blockchain system, in which the upstream, downstream, transportation companies, CCIC (China Inspection and Certification Group) and other participants in the supply chain form a coalition chain. Each shipping company is registered on the blockchain and automatically generates a white bar based on the smart contract. After the transportation company gets the white strip, it can go directly to the bank to pay unconditionally, thus solving the problem of tight cash flow. It can be seen that the function of the blockchain is to increase the trust for the real business of the enterprise, then carry out the value and transferability, and revitalize the enterprise stock business.

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