featured

Why Every Supply Chain Manager Should Know About DFTs?

May 15, 2024 . 3 Mins Read

Share

/whatsapp.svg /fb.svg /x.svg /linkedin.svg /mail.svg

In today's rapidly evolving business landscape, supply chain management is the backbone of maintaining efficient business. One such tool at their expense is DFT(Deep Financing Tokens). The total value locked in Deep Finance rose from $119 million to over $83 billion, which represents an increase of over 60,000 per cent from 2017 to 2021! Many companies have achieved substantial growth by leveraging Deep Finance Tokens to bridge the liquidity gap for their suppliers, resulting in reduced financing costs, improved cash flow, and enhanced production capacity.

This guide aims to illuminate the importance of DFTs for supply chain managers and explore their potential applications.

Deep Finance Tokens (DFTs) are digital assets that are built on a blockchain network. Since they are stored on a distributed ledger, DFTs ensure transparency, security, and traceability of transactions.

Let's see why DFTs are indispensable for supply chain managers:

  • Efficient and Streamlined Operations: DFTs can be integrated with smart contracts, self-executing agreements that automate financial transactions based on predefined conditions. Hence DFTs can streamline operations, reduce frauds and allow manager’s attention on other aspects of the supply chain.

  • Supply Chain Financing: Access to affordable financing is essential for sustaining supply chain operations. DFTs offer innovative solutions for supply chain financing, using asset tokenization, peer-to-peer lending, and decentralized finance (DeFi) platforms.

  • Risk Management: Disruptions in the supply chain can have far-reaching consequences. DFTs enable efficient risk mitigation, reducing chances of fraud, error margin in payment volume and timeline, and smoothing operations.

  • Bridging the liquidity gap: Deep Finance Tokens (DFTs) bridge the liquidity gap in supply chain finance by tokenizing non-liquid assets like unpaid invoices and purchase orders, enabling suppliers to access immediate liquidity by trading these tokens on the market

Are you a supply chain manager looking to harness DFTs but not sure how to get started? Read below to find out!

  1. Assess Current Situation and Pain Points: Identify existing financial processes within the supply chain, including procurement, inventory management, pricing, invoicing, and payment settlements, and identify pain points for which you need DFTs.
  2. Data Integration and Preparation: Collect relevant financial and operational data from internal and external sources, including ERP systems and logistics platforms.
  3. Collaborate with Technology Partners: Engage with blockchain developers and financial institutions with expertise in DFTs and supply chain finance. Capitalize on their expertise in the domain to streamline your operations.
  4. Educate and Train Stakeholders: Provide training and education sessions for supply chain stakeholders, including procurement managers, finance teams, logistics coordinators, and IT personnel.
  5. Monitor Performance: Continuously monitor the performance and impact of DFT integration on supply chain operations and financial outcomes. Gather feedback from stakeholders and end-users to identify areas for improvement and optimizations.

In conclusion, Deep Finance Tokens (DFTs) are revolutionizing supply chain management by leveraging blockchain technology to enhance transparency, security, and efficiency. As a vital tool for modern businesses, DFTs help streamline operations with smart contracts, offer innovative financing solutions, and effectively mitigate risks. With their proven track record, demonstrated by a staggering increase in value from $119 million to over $83 billion from 2017 to 2021, DFTs are indispensable for supply chain managers aiming to optimize cash flow, reduce costs, and stimulate growth. Embracing DFTs is crucial for any forward-thinking supply chain professional seeking to harness the full potential of blockchain technology to elevate their operations and drive business success.

Enjoyed this article? Don't miss out on our weekly newsletter – subscribe now for more insightful content!