Supply Chain Finance and Challenges of Modern Supply Chains

LogForum 2021, 17 (1), 71-82

> Scientific Journal of Logistics < http://doi.org/10.17270/J.LOG.2021.525

http://www.logforum.net p-ISSN 1895-2038 e-ISSN 1734 -459X

ORIGINAL PAPER

SUPPLY CHAIN FINANCE AND CHALLENGES OF MODERN SUPPLY CHAINS

Monika Bal, Kinga Pawlicka The Pozna ń University of Economics and Business, Pozna ń, Poland

ABSTRACT . Background: The cognitive goal of the article is to systematize the knowledge in the field of Supply Chain Finance (SCF) in the context of the leading contemporary trends and challenges of Supply Chain Management (SCM). For the purposes of the research objective, Walmart was selected for the case study as a model implementation example. In the authors’ assessment, there is a need to discuss and organize knowledge about the co-existence of SCF with modern solutions such as sustainable finance or blockchain technology. The empirical goal is to assess the sustainable supply chain finances management (SSCF) in terms of shaping the financial condition of the company and its position on the market. Methods: To achieve the research objective, it was necessary to critically assess the present SCF literature and actual trends implemented in companies, which was done using case study method. The case study form was chosen due to the limited state of knowledge in a research area and the selected company is a precursor in this aspect. The research procedure consisted of: data collection, data analysis, formulating generalizations, confronting the literature, processing of generalizations and study closure. Results: Conducted research helped to develop the existing theory and systematize effects and identify potential opportunities from implementing sustainable supply chain finances management based on blockchain technology. Analysis of financial data proved that benefits exceed implementation costs. Conclusions: First, it was possible to develop an open-ended SCF benefit set, distinguished on the basis of varied literature. Second, implementing blockchain technology in the supply chain and drive to make it sustainable can be complementary activities. In summary, the authors formulate recommendations for other companies and indicate the direction of further research.

Key words: supply chain finance, blockchain, sustainable supply chain.

entire chain integration, and in some cases INTRODUCTION restructuring and creation of global logistics networks. Therefore, there remains a high Today's supply chains are required to potential for optimization, which affects the undergo constant change, which is caused by company's capital structure, risk level, the management of companies searching for operating costs, profitability, and ultimately opportunities to gain a competitive advantage. market value [Gomm 2010]. Therefore, the importance of capital commitment awareness in the context of Combining SCM with leading trends: supply chain management has grown blockchain implementation and considering enormously [Chen, Cai, He, Chen, Zhao, Zou, sustainable issues results in both improving Guo 2020]. These changes result mainly from efficiency, transparency, and traceability and companies following modern information significant corporate financial savings technology while maintaining sustainable [Kouhizadeh, Saberi & Sarkis 2020]. However, development. Consequently, it leads to the the use of this combination of tools in a supply

Copyright: Wy ższa Szkoła Logistyki, Pozna ń, Polska Citation: Bal M., Pawlicka K., 2021. Supply chain finance and challenges of modern supply chains. LogForum 17 (1), 71-82, http://doi.org/10.17270/J.LOG.2021.525 Received: 04.08.2020, Accepted: 18.11.2020, on-line: 12.01.2021.

, Bal M., Pawlicka K., 2021. Supply chain finance and challenges of modern supply chains. LogForum 17 (1), 71- 82 . http://doi.org/10.17270/J.LOG.2021.525 chain strategy does not guarantee success, Financial Supply Chain Management which is the result of many factors. The (FSCM) is based on logistic tasks linked to obstacle is the short presence of such procurement, production as well as a business strategy in practice and few distribution/marketing, functionally coordina- described success stories. Therefore, the ted with financial, investment and accounting research problem of identifying the benefits of tasks of the company [Pfohl 2006]. The blockchain technology and sustainable finance concept is geared to shaping the risk and profit for SCF has been addressed. To this end, the of companies, which is measured by the value Walmart case study was analysed. for shareholders [Gomm 2010]. SCF encompasses a wide range of providers- including platforms, marketplaces, logistics SYSTEMATISING KNOWLEDGE OF companies, insurers, international development SCF entities, private investors, and investment funds [Hawser 2020]. According to the PwC More and more research is being [2018] report "SCF Barometer", the most undertaken to link logistics and supply chain popular SCF solution in most industries and management (SCM) with the business value regions of the world is currently reverse and financial performance [e.g. Gomm 2010, factoring. The following in terms of popularity Wandfluh, Hofmann & Schoensleben, 2016, Li are respectively dynamic discounting, asset- and Chen 2019]. As H.Ch. Pfohl [2006] writes, based lending, and inventory finance [Hawser supply chain finance (SCF) enables the 2020]. SCF, popular so far mainly among large rationalisation of finances by creating companies, is starting to be applied also in cooperation between manufacturers, suppliers, small enterprises, which may result from use of customers and logistics intermediaries. The technological solutions such as blockchain optimization of financing outside the improving the transparency and thus the company's borders is achieved by reducing the credibility. cost of capital and accelerating cash flows [Gelsomino et al. 2016; Wuttke et al. 2016]. SCF definitions focus on rationalization PRESENT-DAY CHALLENGES OF through solutions implemented by financial SUPPLY CHAIN AND SCF institutions or technology with the ultimate goal of aligning financial flows with products In recent years, both business and and information flows in the supply chain (SC) scientists’ communities have been paying [Hofmann 2003; Camerinelli 2009; Lamoureux particular attention to the issues of ecology and and Evans 2011; Wuttke et al 2013]. The main sustainability. In line with this trend, keywords areas of SCF are order cycle management, related to the supply chain most frequently working capital management and fixed asset undertaken by scientists are sustainable supply financing [Gomm 2010]. On the other hand, as chain (own research based on Scopus for suggest Jan H. Jansen [2016] SCF is publications from 2015-2019). The relation a paradigm shift about collaboration in the SC, between finance and sustainability in SC may creating value by having better working capital take the form of assisting contractors in the management and more tight cooperation of process of implementing sustainable chain departments or even shift in a business culture solutions that the chain leader wants to apply especially for small and medium-sized in own company and contractors. The companies. According to the Scopus base, challenge supply chains are facing is how to currently (25.05.2020) there are 1726 scientific increase the efficiency of this relation publications in which the term SCF appears. [Rezende de Carvalho Ferreira et al. 2016]. Most of the publications are written in China (South China University of Technology), then The first scientific studies on SSCF in the United States (Michigan State (Sustainable Supply Chain Finances) have University) and Great Britain (University of already appeared, although there is a need to York). analyze the methods of measuring the benefits and costs of applying this concept [Tseng et al 2019]. Financial flows along the supply chain

Bal M., Pawlicka K., 2021. Supply chain finance and challenges of modern supply chains. LogForum 17 (1), 71- 82 . http://doi.org/10.17270/J.LOG.2021.525 play a key role for sustainable development in environment, which contributes to the so- this chain, yet both researchers and called Smart Supply Chains. Their core idea is management do not seem to notice it, as the building interconnected systems integrating research shows [More and Basu, 2013; Basu technologies used by all partners in the supply and Nair, 2012]. However, the situation in this chain, such as IoT, Big Data, Cloud matter is changing dynamically. The first cases Computing, 3D printing, big data analytics where SCF management methods have been [Nowicka 2018]. The latest technology, applied are large retail chains, clothing including blockchain, is also used to optimize manufacturers and consumer goods supply chain financing. manufacturers. They are linked by a focus on consumers and pressure from them, which is Blockchain is a decentralized and dispersed one of the most important reasons for database in the open source model and a peer- achieving sustainable development goals. By to-peer (P2P) network, with no central implementing the buyer's sustainability goals, computers and no centralized data storage. It is the supplier gains direct discounts. The used, among others, to book transactions research by M. Tseng et al [2019] showed that encoded in the form of cryptographic SSCF improve the competitive advantage of algorithms [Nakamoto 2009]. It enables secure companies and the most important aspects of exchange of monetary value and information improving results are boosting innovation, leading to new cooperation between the SC strategic competitive advantage, and financial entities [Chen, Cai, He, Chen, Zhao, Zou, Guo attributes. An additional effect may be the 2020] along the entire supply chain in both its improvement of long-term business physical (buyer-supplier or supplier-customer) relationships. Furthermore, to successfully and support (carrier-supplier or financial apply SSCF, it is first necessary to improve the institution-buyer) tiers [Carter, Rogers, and synchronization of financial decisions, learn Choi 2015]. Blockchain-based applications can about prices, costs and focus on product and also replace nonvalue adding intermediaries service quality. New tools are emerging to (e.g., call centers, e-commerce platforms). C. support companies in this process [Transaction Durach et al. [2020] demonstrated in their Banking 2020]. research that there is a variety of implementation areas for blockchain in SC in Another issue linking finances with the terms of implementation probability and implementation of sustainable development business impact. The results of their research objectives is so-called impact investing, i.e. are presented in Figure 1. investing financial resources, to create social and environmental changes (together with Inefficiencies in the processing of internal financial benefits) [Rezende de Carvalho and external financial settlements in the supply Ferreira et al. 2016]. A noteworthy solution of chain are, in addition to low awareness, the SSCF are green bonds, which can be issued a major obstacle to the implementation of SCF. by both the state and private sector entities. Despite the progressive computerization of The idea is to finance a predefined target processes in supply chains, the processing of related to ecology and sustainability with financial transactions in most corporations emission funds [Al-Mheiri, Nobanee, 2020]. In remains in the traditional paper form [More the supply chain, this could be, for example, an and Bass 2013], leading to delays in payments, investment in a closed loop, renewable energy higher DSO (Days Sales Outstanding) and, as sources or the elimination of certain materials a result, increased demand for working capital. or substances from the production process. For many companies operating on minimum margins, even small delays can have a serious Another megatrend at SCM is progressing impact on their liquidity. Moreover, the flow rapid digitization. The use of information of goods along SC is often not transparent systems in an integrated SC reduces its enough. The development of blockchain complexity and therefore the cost level. technology can respond to these challenges Businesses are therefore increasingly [More and Bass 2013] by providing tamper- transferring their activities and processes, proof history of production, handling, including the SCM process to a virtual maintenance, as well as digital ownership and

, Bal M., Pawlicka K., 2021. Supply chain finance and challenges of modern supply chains. LogForum 17 (1), 71- 82 . http://doi.org/10.17270/J.LOG.2021.525 packaging information, leading to increased information, documents, or cash. On the transparency in the chain and intensified contrary, blockchain guarantees fairness and integration [Ghode et al. 2020]. In traditional allows for secure authentication of logistics business-to-business flows there is a high risk and spread of information in the network. of falsification or distortion of e.g.

Source: Durach et. al, 2020

Fig. 1. Best blockchain application areas in SC transactions: Means of expected likelihood of implementation and impact on business

Source: Chen, Cai, He, Chen, Zhao, Zou, Guo 2020

Fig. 2. Role coordination in a blockchain-based platform for supply chain financing (BCautoSCF)

Bal M., Pawlicka K., 2021. Supply chain finance and challenges of modern supply chains. LogForum 17 (1), 71- 82 . http://doi.org/10.17270/J.LOG.2021.525

Research of J. Kim and S. Shin [2019] has solutions providers offering sustainable finance shown that the characteristics of blockchain solutions. technology (information transparency, information invariability and smart contracts) have a significant positive impact on the SUSTAINABLE SUPPLY CHAIN development of partnerships in supply chain, FINANCE AND BLOCKCHAIN which translates into company performance. TECHNOLOGY - THE WALMART First examples of implementation show that CASE STUDY blockchain in SCF is a great opportunity for small and micro enterprises with a short credit The company famous for optimizing the history. Blockchain-based supply chain supply chain through innovation is the management platform for the Chinese market American supermarket chain Walmart Inc. was launched in 2019 by DBS Bank to fill the founded in 1962 by S. Walton gap in financing for logistics providers by [www.walmart.com]. In 2019, Walmart began increasing their creditworthiness. Using working on the application of blockchain blockchain technology, it takes a few seconds technology to SCM. In the same year, he also to verify supplier transactions and 24 hours to started a sustainable supply chain finance receive financing [Hawser 2020]. project [Dimitrov 2019]. Being one of the world's largest retailers, Walmart owes its The SCF concept was initially rapidly success to effective and efficient supply chain spreading in business, as the topic of scientific management. The store chain has been analysis it gained popularity later. It seems that a precursor of partnerships with suppliers, the same is true for the combination of SCF treating them more like partners than with the trends discussed in this paper. The use competitors. As one of the first companies, of blockchain in SC is a new but fast-growing over 10 years ago, it implemented RFID to research area. According to Scopus (as of track pallets with goods in every link of the 22.07.2020), there are 915 publications with supply chain. This venture has become phrases: supply chain and blockchain, but: a benchmark for other retail chains. Walmart − 70 for combination: supply chain + finances contributed to the roll-out of the Electronic + blockchain Scoreboard (RetailLink), which could be used − 74: sustainable + supply chain + blockchain by suppliers and carriers to measure their − and only 3 with combination: sustainable + progress towards offering the highest quality supply chain + blockchain + finance. customer service.

The most modern supply chains currently It is also characteristic of the Walmart chain using SCF are characterized by the to ensure that the supply chain is sustainable, simultaneous application of modern which was manifested in the systematic technologies such as APIs and blockchain, the implementation since 2005 a set of practices implementation of philosophy of greening leading to greening supply chain, as shown in supply chain and the consideration of the Table 1. These objectives are mostly still being interests, including financial, of end-chain pursued by Walmart, although some have been small companies. This is evidenced by the slightly modified or their role has increased. results of the Annual Awards for World's Best Supply Chain Finance Providers 2020 Walmart's Sustainability Index Program published by Global Finance [Hawser 2020]. (currently THESIS - The Sustainability Insight Technology solutions such as distributed System) is a global database of product ledger technologies and application sustainability, created in cooperation with programming interfaces (APIs) increase the a scientific consortium. Ultimately, all ability of banks to reach small entities at the products available for sale at Walmart [Quinn end of the chain, usually ignored by 2009] are to be included. Index collects and commercial trade finance banks. Banks such as analyzes in one place information from various Paribas' GNP effectively compete among SCF stages of product movement from sourcing

, Bal M., Pawlicka K., 2021. Supply chain finance and challenges of modern supply chains. LogForum 17 (1), 71- 82 . http://doi.org/10.17270/J.LOG.2021.525 materials to after-sales service. It helps to as the ranking position in various categories identify social and environmental hotspots - are visible to suppliers. All this encourages places in the chain that require action, and then commitment to continuous improvement of presents potential solutions to diagnosed products to make them more sustainable problems by category. Detailed ratings as well [Walmart Inc. 2018].

Table 1. Walmart's 8 practices for sustainable supply chain

Practice Short description Financial aspect Identifying goals, metrics, Sustainability of all core suppliers and providers of all private- With better information company can and new technologies label products were evaluated by Walmart’s assessment called rationalize its supply chain and reduce “15 questions” costs. Scorecard is including also Initiating the creation of the Sustainability Consortium - a financial performance collective of manufacturers, retailers, NGOs, and universities Certifying environmentally Certifying products by outside organization results in Growing trust in supply chain has sustainable products verification of environmental performance, increased positive impact on finances transparency, and better visibility of the entire chain Providing network partner Consulting, trainings, and assistance for suppliers to achieve Win-win: short payback period, assistance to suppliers desired results significantly lower costs for suppliers, achieving goals for Walmart Committing to larger Making long-term quantity commitments to drive suppliers Building partnership and motivating volumes of environmentally toward more sustainable practices sustainable investments keeping low sustainable products cost Cutting out the middleman Buying directly there, where Walmart is selling raw product (e.g. Buying directly from farmers increases apples but not cotton) both their and Walmart’s i ncome Restructuring the buyer role Facilitating more effective supplier relationship management by Higher efficiency of purchasing process team-based approach that allows individuals to specialize in one narrow area and staff rotation (between roles) Consolidating direct Shifting power within the relationship from Walmart to the Long-run profitability for the supply suppliers supplier may encourage him to invest in sustainability chain as a whole Licensing environmental Proactive role of Walmart in promoting the spread of good ideas Through licensing, suppliers can innovations e.g. bringing best suppliers together in non-competitive working generate additional revenue streams and groups realize a quicker payback on their investments Source: own work [Plambeck and Denend 2011]

A leading example of the SSCF is the To achieve this goal, working with suppliers is network's partnership with the UK bank HSBC crucial, as the entire life cycle of a product is in China to promote greater sustainability in analyzed to assess its environmental impact. the SC by linking the funding rate to supplier All suppliers are invited to cooperate sustainability references compared to the regardless of the products they offer or their Walmart Sustainability Index [Hawser 2020]. current level of pro-sustainable activity, and The joint work resulted in the development of their targets are set individually. To meet the the WSIP/THESIS index and Project Gigaton program goal, Walmart also makes its own [www.business.hsbc.com]. The supply chain investments in renewable energy, including financing program aims to promote solar power generation in California and the sustainability by adjusting financial rates purchase of wind power for stores in Texas between supplier and enterprise. Under the [Quinn 2009]. program, suppliers who take sustainability initiatives and demonstrate progress in According to N. Blyth, Global Head of achieving their targets will have access to Trade and Receivables Finance in HSBC preferential funding rates from HSBC. [www.business.hsbc.com]: "Embedding Financial support can take a variety of forms, sustainability in global supply chains is not from standard green loans to innovative only beneficial for the environment and projects that fund suppliers to develop tools to society, but also for companies' bottom lines. reduce the negative environmental impact of As the world's leading international bank, their activities. Walmart's second initiative is HSBC is actively building new partnerships the Project Gigaton launched in 2017 to reduce and frameworks to help deliver a more one billion tons of greenhouse gases by 2030. sustainable future for all.” Walmart's

Bal M., Pawlicka K., 2021. Supply chain finance and challenges of modern supply chains. LogForum 17 (1), 71- 82 . http://doi.org/10.17270/J.LOG.2021.525 management board is of a similar opinion, in the creation of Distributed Ledger believing that focusing on sustainability Technology (DLT), now to be synchronized throughout the supply chain stimulates with blockchain. DLT is a distributed database innovation and generates added value for the with registers replicated and shared between company. Investing in sustainability can not distributed geographical units. Since then, only lead to higher productivity and cost Walmart has been involved in several DLT- reductions for suppliers, but also stimulate the related patents, including the identification of development of employee creativity and high- the product withdrawn from the market, the tech activities tracking of meat products, the surveillance of [www.walmartsustainabilityhub.com]. supply drones, and the patenting of intelligent supply in the United States Described above path of development [www.cointelegraph.com]. chosen by the company's management has led to the implementation of another technological Currently blockchain is also used by novelty - blockchain in the supply chain, Walmart Canada. According to the company, despite this technology is currently unavailable all external freight forwarders are already for most companies and constitutes a huge using the platform, which has contributed to challenge in logistics. the security of supply chain operations. Walmart Canada has established a partnership According to the VeChain platform, VET with DLT Labs, resulting in a project called [www.vechain.org] Walmart China in June DL Asset Track. This is a new system that uses 2019 began work on a project to supervise the blockchain to track delivery, verify transport and food supply process throughout transactions, and automate payment and the supply chain via blockchain. For this reconciliation between the company and purpose, the Walmart China Blockchain suppliers to more than 400 stores in Canada. Traceability Platform According to DLT Labs, the system has the [www.cointelegraph.com] was established, advantage of being simple and intuitive to use, managed as a joint venture by Walmart China, requiring only a web portal or mobile VeChain, PricewaterhouseCoopers (PwC), application. The project aims to increase the cattle company Inner Mongolia Kerchin, and company's distribution efficiency by the China Chain-Store & Franchise managing, integrating, and synchronizing all Association. Initially, the blockchain- supply chain and logistics data in real time, controlled supply chain is going to cover 23 linking data between Walmart Canada, product lines, then another 100 products from shipping companies and suppliers. various categories will be included. According to J. Bayliss, Senior Vice K. Feng, Chief Operating Officer of President of Logistics and Supply Chain at the VeChain reported [www.prnewswire.com]: "It company [www.risnews.com]: "carrier is expected that the Walmart China's partners move over 500,000 loads of inventory traceability system will see traceable fresh nationally, which creates an extraordinary meat account for 50% of the total sales of volume of transaction data. This new dynamic packaged fresh meat, traceable vegetables will and interactive blockchain technology platform account for 40% of the total sales of packaged is creating complete transparency between vegetables, traceable seafood will account for Walmart Canada and all of our carrier partners. 12.5% of the total sales of seafood by the end Blockchain is enabling a material advance in of 2020.” Such an approach is evidence of our smart transportation network, with gradual development of the project and testing expedited payments, extensive cost savings the functioning of the supply chain based on and other benefits among our supply chain. new technology, which allows for constant Moreover, this degree of improved efficiency correction of errors and deviations from the represents a powerful platform for us to intended purpose. continue to reduce our environmental footprint and continue our leadership in environmental The first work on the decentralized database sustainability.” The use of blockchain was started in 2016 with IBM, which resulted technology will contribute to increase

, Bal M., Pawlicka K., 2021. Supply chain finance and challenges of modern supply chains. LogForum 17 (1), 71- 82 . http://doi.org/10.17270/J.LOG.2021.525 efficiency of the supply chain, which will when the work on the implementation of result in cost reductions. blockchain technology began and the commitment to supply chain finance To verify that statement, we analyzed sustainability increased (project plans were financial indicators from last 5 years, when the already in place since 2016). Data from last 2 changes described above were carried out quarters of 2020 show continuation of growing (Table 2.). Total revenues and total assets have trend. However, data from the next 5 years been growing gradually since 2016, which may after implementation will be needed to clearly indicate the growing business activity. identify the impact of discussed changes on However, profitability (Net Margin, EBITDA, financial results. ROE, ROA) and liquidity (Quick ratio, Current ratio) have only been increasing since 2019

Table 2. Walmart's financial measures

2020 2019 2018 2017 2016 1 Total revenues* 523.964 514.405 500.343 485.873 482.13 2 Operating income* 20.57 21.96 20.44 22.76 24.11 3 Total assets* 236.50 219.295 204.522 198.825 199.581 4 Net Profit Margin 3.05% 1.30% 1.97% 2.81% 3.05% 5 EBITDA* 31.56 32.64 30.97 32.84 33.56 6 Return on Asset 6.29% 3.11% 4.84% 6.80% 7.31% 7 Return on Equity 19.08% 8.57% 12.53% 17.17% 17.90% 8 Current ratio 0.79 0.80 0.76 0.86 0.93 9 Quick ratio 0.22 0.23 0.20 0.22 0.24 Source: own work based on data from: https://www.macrotrends.net/stocks/stock-comparison [access 15.10.2020]

comprehensive supply chain finance management in the face of new logistics DISCUSSION challenges, including technological innovation and environmental protection. However, as in The SCF is now entering a new phase from the times of the financial crisis of a decade a poorly researched innovation to a complete, ago, there is a strong interest in this issue of mature, and increasingly widespread concept business environment, as evidenced by the in SCM. Not only large industry leaders growing number of entities offering such (although those still dominate, according to services. PwC research), but more and more small suppliers, even without a credit history, After analyzing Walmart's case study, it participate in SCF programs [Hawser 2018]. appears that implementing blockchain These changes force the search for innovative technology in the supply chain and solutions within the SCF, and these focus sustainability are complementary activities. primarily on technological innovations and the From Figure 1 we see that areas of blockchain consideration of the sustainable aspect. As the implementation in the Walmart network such future of SSCF, the blockchain technology is as verification of supplier information and SCF indicated, which will facilitate the support are areas that generate big business configuration of mechanisms dedicated to the impact. It can therefore be assumed that they SSCF, open the way for more effective, bring measurable benefits to the company that sustainable and secure supply chain financing exceed costs. The authors have defined such solutions and, consequently, contribute to their costs and the potential benefits, dividing them diffusion [Al-Mheiri, Nobanee, 2020]. into the short and long term effects (Table 3.).

The literature review shows that there are many articles on SCF and FSCM, while there are far fewer scientific publications on

Bal M., Pawlicka K., 2021. Supply chain finance and challenges of modern supply chains. LogForum 17 (1), 71- 82 . http://doi.org/10.17270/J.LOG.2021.525

Table 3. Achieved and potential benefits and costs of implementing blockchain technology and SSCF in Walmart's SC

Short-term benefits (already achieved) Strategic benefits (achieved over 5 years Main costs and obstacles after blockchain implementation) Increase trust & transparency to Walmart’s Minimize fraudulent products that either harm Transparency is not always desirable – end consumer consumers and/or result in PR damage requires partner relations which is not always the most effective (according to transactional cost theory) Direct insight into inventory and supply chain Reducing negative environmental impact by: Time and resources used after inefficiencies. Digitize essential certificates - reduction of unnecessary transport incorporating blockchain into existing and documents to optimize information - ability to prove product is safe during a system for employees training program management, certify provenance, and ensure foodborne outbreak - the cost of human health and implementation plan authenticity and life fast identification of potential problems in the Build a more sustainable food system by Cost of implementation of new systems: supply chain related to the circulation of detecting food fraud, increase safety, reduce reconstruction of the company's information, goods and finance that can be spoilage & waste with analytics infrastructure and business processes can quickly resolved disrupt the operation of the entire enterprise or take human resources from other projects within the organization automation of financial operations Increased monetization from specific segments Some suppliers may not be able to adapt maintaining an appropriate level of by validated organic beef vs. non-organic OR to a blockchain-based environment due transaction verification, secure management wild vs. farmed salmon to some shortages of distributed databases Increase in revenue, decrease in costs: 89%, Create a global view of the provenance across Enhancing traceability 81%, 79% Enhancing Walmart’s supply chain transparency (Source: report Insolar) Gain halo effect from new tech potential Prepare roadmap for future solutions Improve shelf-life management and waste of achieving added value through a combination expired products of blockchain and SSCF resulting from preferential financing rates for green activities increased transparency in the chain and intensified integration between suppliers as well as banks and financial institutions leading to higher performance of all chain due to motivated suppliers Source: Own elaboration based on https://academy.binance.com/pl/articles/blockchain-use-cases-supply-chain [access 15.10.2020].

The effectiveness of including of Walmart and establishing cooperation with sustainability and blockchain implementation the British bank HSBC. into the SCF and the achievement of long-term goals, with regard to financing, may be There is a considerable amount of English- a subject of the future research. Increasing the language literature on sustainable supply chain SC efficiency, together with the security of finance, associated with the trend of "green operations, can contribute to the reduction of logistics", but there was a lack of analysis and activities that do not generate value for the methods for measuring the benefits and costs company, thus minimizing the negative impact of this concept. of its activities on the environment. The existence of an interface between supply chain On this basis, the following finances, blockchain technology and concept recommendations for enterprises were of sustainable supply chain may be further formulated regarding the current financial investigated. management of the supply chain: 1. Blockchain can be used to effectively shape sustainable supply chains. This technology SUMMARY enables, above all, the safe implementation of logistics processes by excluding The systematization of knowledge in the disruptions in the flow of information field of supply chain finance allowed to throughout the supply chain. critically assess information in this area and to 2. Blockchain is an opportunity especially for identify the most important theories and complex chains with large disproportions in aspects related to finance in logistics. As the bargaining power of entities where a result, it was possible to analyze case study suppliers are small and micro businesses.

, Bal M., Pawlicka K., 2021. Supply chain finance and challenges of modern supply chains. LogForum 17 (1), 71- 82 . http://doi.org/10.17270/J.LOG.2021.525

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Bal M., Pawlicka K., 2021. Supply chain finance and challenges of modern supply chains. LogForum 17 (1), 71- 82 . http://doi.org/10.17270/J.LOG.2021.525

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FINANSOWANIE ŁACUCHA DOSTAW ORAZ WYZWANIA WSPÓŁCZESNYCH ŁA ŃCUCHÓW DOSTAW

STRESZCZENIE . Wst ęp: W ocenie autorek istnieje potrzeba zwrócenia uwagi oraz uporz ądkowania wiedzy w zakresie współistnienia zarz ądzania finansami ła ńcucha dostaw z nowoczesnymi rozwi ązaniami, takimi jak zrównowa żone finanse, czy technologia blockchain. Metody: W ramach realizacji celu konieczna była krytyczna ocena obecnego dorobku literatury z zakresu SCF oraz aktualnych trendów wdra żanych w przedsi ębiorstwach. Do osi ągni ęcia celu badawczego posłu żono si ę studium przypadku przedsi ębiorstwa Walmart, które pozwoli rozwin ąć istniej ącą teori ę i dokładniej wyja śni ć kwesti ę osi ąganych korzy ści z wykorzystania technologii blockchain i zrównowa żonych finansów do zarz ądzania ła ńcuchem dostaw. Posłu żenie si ę studium przypadku jest uzasadnione ze wzgl ędu na niewielki stan wiedzy w danym obszarze bada ń, a wybrana firma jest w tym aspekcie prekursorem. Procedura badawcza składała si ę z: gromadzenia danych, analizy danych, sformułowania uogólnie ń, konfrontacji z literatur ą, opracowania uogólnie ń i zamkni ęcia badania. Cel: Celem poznawczym artykułu jest usystematyzowanie wiedzy z zakresu Supply Chain Finance (SCF) w kontek ście wiod ących współczesnych trendów i wyzwa ń Supply Chain Management (SCM). Celem empirycznym jest analiza potencjalnych korzy ści dla przedsi ębiorstw z zarz ądzania zrównowa żonym rozwojem finansów ła ńcucha dostaw. Wnioski: Po pierwsze, mo żliwe było opracowanie zespołu korzy ści słu żą cych do zarz ądzania finansami ła ńcucha dostaw. Zbiór ten wyró żniono na podstawie zró żnicowanej literatury i nie ma on charakteru zamkni ętego. Po drugie, wdro żenie technologii blockchain w ła ńcuchu dostaw i d ąż enie do jego zrównowa żania mog ą by ć działaniami komplementarnymi. Podsumowuj ąc przeprowadzone rozwa żania, autorki formułuj ą rekomendacje dla innych przedsi ębiorstw i wskazuj ą na kierunek dalszych bada ń.

Słowa kluczowe: finanse ła ńcucha dostaw, blockchain, zrównowa żony ła ńcuch dostaw

Monika Bal ORCID ID: https://orcid.org/0000-0003-3997-5377 The Pozna ń University of Economics and Business Institute of International Business and Economics Department of Logistics Al. Niepodległo ści 10, 61-875 Pozna ń, Poland e-mail: [email protected]

Kinga Pawlicka ORCID ID: https://orcid.org/0000-0002-8634-5282 The Pozna ń University of Economics and Business Institute of International Business and Economics Department of Logistics Al. Niepodległo ści 10, 61-875 Pozna ń, Poland e-mail: [email protected]