The needs of energy supply chains are as diverse as supporting heavy manufacturing operations to financing commodities procurement and distribution.
Energy companies around the world use Skuchain’s EC3 Platform to:
Finance procurement of commodities and inventory across the supply chain. Both energy commodities, such as cobalt, lithium, rare earths, petroleum and natural gas, and part sub-assemblies that go into infrastructure or finished products for manufacturers and energy companies can be financed on the blockchain. Traditional invoice factoring or receivables financing is a post shipment invoice-accepted model.
In this model:
Our BOM Buyer is a completely different way of freeing up capital in the supply chain that turns inventory into financeable assets. A special purpose vehicle governed by a smart contract takes ‘title’ to the underlying good.
There are three main benefits to the BOM Buyer:
What does a typical BOM Buyer deal look like?
What does blockchain bring to this deal?
Secure critical raw materials with program buying. From cobalt to lithium and rare earths, several raw materials are critical for the manufacture of energy-efficient finished goods and have the ability to significantly delay or even shut down an assembly line if not available at the right time and in the necessary quantities. By the time such a shortage is discovered, production plans have to be adjusted by weeks, or even months, and the supply chain has to throw enormous resources towards procuring the necessary components to avoid further delays or order cancellations.
Collaboratively plan with their supply chains. While Just In Time (JIT) procurement is the gold standard for energy supply chains, it is becoming harder and harder to achieve with rapidly changing energy standards, technologies and raw material supply. The key to minimizing risk of procurement errors, late delivery or delivery of faulty finished goods, is to plan in a collaborative manner by sharing critical information across the supply chain.
Any blockchain platform will allow for this data to be distributed in a decentralized way across supply chain partners. Not all data can be shared, however, and some data may be used in an algorithm but cannot be revealed in its raw form. That’s where EC3 comes in to make collaborative planning a practical reality.
Using our smart contracts system and cutting-edge zero-knowledge technology, EC3 is able to
When a manufacturer or energy company knows that its sensitive information can be used by supply chain partners to plan without compromising confidentiality, they are finally able to share this information and enable a much more efficiently planned supply chain.
Provide raw material traceability for quality, safety and sustainability attestations. To have better control over the quality and processing of raw materials, energy companies need end-to-end visibility into their sourcing and refinement process. This traceability is currently provided by a combination of point-to-point communication between supply chain partners and the extensive use of outside inspectors.
Skuchain’s EC3 allows a company to tag bulk raw materials and finished goods SKUs with a Popcode, a digital ID that is logged onto the blockchain. Notations about the process and corresponding documentation can be attached to this specific Popcode. Because Skuchain’s EC3 integrates Popcodes with Brackets smart contracts, we are able to tie transactions and paperwork with a specific product across the supply chain. Popcodes may be logged onto the blockchain through the Skuchain smartphone app or industrial scanners of choice. Transactions and records may be submitted to EC3 through an API integration with ERP systems, Excel spreadsheets or other existing technology, or directly into our CRP.
A manufacturer or energy company can therefore trace the supply chain and raw material input of a particular product all the way back to its origins in seconds. For companies who have pledged high quality commodities and sustainable practices to their customers, Skuchain’s EC3 represents an enormous cost-saving measure for providing this attestation.