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Supply Chain Finance

BlockchainA Revolutionary Technology in

Search of a Problem

What is Blockchain technology?

General word for Applied Cryptography

Smart Contracts

Distributed Database

Atomic BroadcastUnder Adversarial Network

conditions

A blockchain is the result of a protocol where all the nodes in a network agree on a sequence of messages.

Blockchains are the 1st protocol that does this with an actively adversarial nodes and network.

Do we need a blockchain?

Digital Signatures?\̄_(ツ) _/̄

Digital Signatures are a great system for indicating the authenticity and sufficient and assent between two parties.

Digital Signatures alone do not solve the problem of assent between 3 + parties.

Blockchains solve the problem of attestation + privacy + fair computation

BBO: Blockchain Based Obligation

KYC + Payment Obligation

Buyer Buyer Bank Skuchain Seller

Enter into a bracket

Obligation Opportunity

BBO v. BPO- Ease of Integration

- Ease of Adoption

- Buyer is protected

- Portability of Invoice and Financing

- Supply Chain and Deep Tier Financing

Ship Goods

ePresentationAcceptance

Debit Buyer

Discount Possibility

Settle based on terms

Discount Request

Pay Seller

Ack acceptance

Bank Finances

Blockchain and BBO

The presence of payment guarantee is an enables a variety of new financing models.

The blockchain form simplifies the usage of the payment guarantee in working capital solutions

8Skuchain: Private & Confidential

Inventory Financing

Vendor Financed

In transit / HubSeller Buyer

InvIMT

In transit / HubSeller

Blockchain IMT Financed

Buyer

Inv

Payment $

Shipment Shipment

Payment $Payment $

Shipment Shipment

9Skuchain: Private & Confidential

VMI Value at each step

1

2

Day 1

3

Day 15

Day 20

Day 22

Day 26+6

5

B

need for financing

Day 26+6

0

4

5

6

A

Dynamic PO Risk & working capital pricing

Paperless e-transaction

Extended terms & 3rd party financing

Real time visibility

Triggered electronically

7

Day 25

Demand PlanningDay 26

Invoice Discount Opportunity9

8

Cash Flow Optimization

Blockchain and VMI

VMI enables investors to invest capital in supply chains at desirable spread to the underlying risks of the buyer.

Complex administration and controls impede harvesting these investment opportunities.

Skuchain: Private & Confidential

Blockchain Based Purchasing: Deep Tier

11

Open a Bracket

Buyer Skuchain T1 T2

Open a BracketScrip Opportunity

Authorize Scrip Facility

Allocate Scrip

Accept/Release Scrip

Ship Goods

Place Scrip in escrow

Request Scrip Redemption

Funds Wired to T2 bank

Ship GoodsInvoice financing Opportunity

Accept Shipment

Funds wired to T1 Bank

Payment in 90 days

T2 T1

JIT Visibility

Blockchain and Deep Tier

Deep Tier accelerates access to capital up the supply chain.

Complex administration is automated via the blockchain and Tier 1 and Tier 2 buyers can preserve confidentiality from the ultimate Buyer.

Skuchain: Private & Confidential 13

Scrip to cover T2 & T3

Suppliers

LC’s to cover cross-border shipments

Payables Financing

Inventory Financing

Track & TraceInsurance

Receivables Financing

Brackets

Collaborative CommerceVideos

The effects of Blockchain on the

Supply Chain

Broaden the pool of supply chain investors and working capital lender

Decrease the cost of working capital into the deeper tiers of the supply chain

Increase visibility and resilience of the supply chain to disruption.