DBS Launches Blockchain Trade Platform for the Automotive Sector in China
by Fintech News Hong Kong December 20, 2018DBS Bank announced that it has partnered with one of China’s largest automotive logistics companies, China Capital Logistic Co. Ltd alongside blockchain provider, Wanxiang Blockchain, to launch an automotive blockchain platform connecting car manufacturers, exporters, logistics carriers and car dealerships.
Named YunLianMeng, which means “Logistics Supply-Chain Connect” in Mandarin, the blockchain platform aims to provide the Chinese automotive company’s supply chain network with greater efficiency, cost savings and transparency.
The blockchain platform will also facilitate integrated trade financing from DBS, giving participants easy access to financing on-the-go. This will be especially beneficial to small and medium enterprises (SMEs), which previously would not have access to the bank’s credit facilities.
With YunLianMeng, all participants along the supply chain will be able to access data on their order and delivery status in real-time. This enables transactions to be completed seamlessly, promoting faster order turnarounds and greater transparency.
For instance, shipment carriers are able to receive and accept e-shipment orders through YunLianMeng. Thereafter, end customers, such as car dealerships, will be prompted through the blockchain platform to acknowledge the delivery order and log the delivery status of the goods once they are received.
All information posted on the blockchain platform will then be provided to relevant participants, building trust and transparency across the supply chain. In addition, YunLianMeng also serves as a secure information repository by ensuring all confidential data is protected and restricted to authorised parties only.
Financing-wise, DBS evaluates and disburses trade financing to participants based on digital data stored on YunLianMeng. This removes the need for paper-based supporting documents, cutting short the credit approval process. This means that participants on the blockchain platform get to enjoy a shorter working capital cycle which translates to savings in supply chain costs.
Since its launch, DBS has already successfully processed and disbursed the first trade financing request to an SME vendor on YunLianMeng.
Featured image credit: Unsplash
