Blockchain for MSMEs

The biggest use case for MSMEs with Blockchain is in the supply chain and e-commerce industries. There are over 35 million MSMEs in India, contributing to 40% of India’s GDP.

ho6_conta Blockchain

The use cases for them are:

Trade finance:

The trade finance ecosystem is heavily dominated by paper processing with multiple participants along the transaction lifecycle. Time taken for transactions, costs for each transaction, and issues of data security plague international trade.

With rising costs and operational risk, the industry has been seeking solutions to simplify, better manage, and digitize trade, making it ripe for the benefits of blockchain technology.

Supply chain financing: 

Financing invoices, financing against inventory, financing against goods receivables are major problems for MSMEs. Blockchain can reduce time to verify invoices and inventory through combining Blockchain traceability with Goods Receivables, POs, invoices. 

Knowing the authenticity of the product location data + product quality + supplier credentials can greatly help in speeding up the process of supply chain financing.

Contract management: 

Blockchain can be used to create, check and enforce contracts between users, would be suppliers, clients, and customers. 

Whether it be invoicing, settling interest fees, creating insurance policies, handling fulfilment of inventory, smart contracts can make the contracting process much more efficient, especially if there are more than two parties involved in a transaction.

Traceability:

Tracing a product across the supply chain is paramount to ensure on-time payments, product quality, and timely deliveries. 

Traceability is required at every level, from product imaging, videos showing products being loaded, products monitored using sensors.

Loyalty points:

Retailers can give out brand specific and retail specific loyalty points to customers. Customers can then trade these points on a secondary market, which leads to additional marketing for the product.

Copyright and IP:

Potential copyright of a hardware or software product can be created on a blockchain smart contract, with tracking of who has used, with payments happening directly over the blockchain. Click here to know more.

Data sharing:

Share your customers’ data securely. More recently, with MeitY in India launching a challenge to create a zoom alternative, a Blockchain is perfect to facilitate a p2p version of zoom with no data privacy issues.

Warranty management:

Warranty of products can be tracked, and a digital clone of the product can be created on Blockchain. 

Easy warranty based redemption of the product, with smart contracts between the retailers, dealers, the OEM would provide high efficiency in the reverse supply chain.

Supply chain financing +

Traceability +

Contract management +

Payments +

Warranty management =

E-commerce platform for all SMEs.

business get in touch right_man_two contact

Do you want to explore how Blockchain can be used for your business?

Get in touch with us now, and we’ll give you a call!