Collaborative Commerce...TREASURY SYSTEMS Infosys-Finacle CGI-Twin Temenos SAP Reval Systems Commodities Suppliers SUPPLY CHAIN SYSTEMS Kinaxis JDA Software Amber Road GT Nexus Fragmented

Collaborative Commerce

Skuchain: Private & Confidential

Problem:

A smart contract (Brackets) that governs all phases of a trade agreement from on-boarding to order, shipment, invoice and paymentwith Bank grade accounting of inventory.

aka Collaborative Commerce

Overview

Global supply chains are complex and lack visibility and trust preventing efficiency in the movement of goods and deployment of capital.

Solution:


Supply Chain Management and Supply Chain Finance were designed to increase efficiency of the movement of goods and the deployment of capital against the end to end process but there is minimal visibility and trust between start and finish.

Activity

Documents

Order Production Completed Delivery Invoicing Inspection Payment

Initiation

P.O. Certifcates Bill of Lading Invoice Invoice

ApprovalsACH / Wire

MT700Updates

WIP Post Transaction

?

Supply Chain Finance starts too late in the process

The Transaction Actually Begins with the Po.

Post Payment There is minimal Visibility

Visibility into the Health or Quality of the Supply Chain is Minimal

Supplier On-Boarding

Tracking the origin of goods

Supply Chain Issues Today


Deep Tier Supplier IssueSupply Chain issues are exasperated as supply chains spread from

Tier 1 to Tier 2 and Tier 3 suppliers.

Complex assemblies and subassemblies further

complicate the supply chain issues

Tier 1 Supplier

Tier 2 Supplier

Tier 3 Supplier

1. Assurance of Quality2. Assurance of Delivery3. Early warning of issues4. Real time updates5. Financing Options across the SC

Global Buyers Require:

Issues Increase


Trade & Treasury Banks Corporates Tier 2

SuppliersTier 3

Suppliers

GoodsWorking Capital

MisysSurecomp

China SystemsPinnacle

SWIFTBolero.Net

BAFT

LEGACY SYSTEMS

INDUSTRY BODIESNEW WORKING

CAPITAL PLAYERS

Prime FinanceTauliaKyriba

Demica

TREASURY SYSTEMS

Infosys-FinacleCGI-TwinTemenos

SAPReval Systems

Commodities Suppliers

SUPPLY CHAIN SYSTEMS

KinaxisJDA SoftwareAmber Road

GT Nexus

Fragmented Solutions

No One Solution provides Visibility and Trust across the Supply Chain

The BlockchainNew Technology New Possibilities

6

Skuchain: Private & Confidential1991 1996 2001

Title Transfer

No Innovation in Trade Finance

2015


What the Blockchain makes possible


What:

Buyers: Get extended terms and assertion of quality and visibility.

Sellers: Get paid on time

Banks: New financing opportunities

B lockchain basedR elease of funds, that A reC onditionallyK ey-signed &ET riggered byS ignals

Introducing Brackets

Brackets tap the power of blockchains and the distributed ledger to allow supply chain ecosystem partners to enter into trustable agreements with each other

Value:


• Utilizing the power of the blockchain allows Skuchain’s Brackets to deliver true Collaborative Commerce with full Visibility and Trust.

• The blockchain allows better data integration by utilizing data and meta-data instead of documents.

Scrip to cover T2 & T3

Suppliers

LC’s to cover cross-border shipments

Payables Financing

Inventory Financing

Track & TraceInsurance

Receivables Financing

Brackets

Collaborative Commerce

BBOBlockchain Based Obligation

11

BBO: Blockchain Based Obligation

KYC + Payment Obligation

Buyer Buyer Bank Skuchain Seller

Enter into a bracket

Seller Bank

Obligation Opportunity

BBO v. BPO- Ease of Integration

- Ease of Adoption

- Buyer is protcted

- 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

SellersBank Finances

Data LCIntegrate with SWIFT

13

Create Bracket

Buyer Seller

Issue L/C w/ eUCP rules

Ship Goods

Buyer Bank accepts e-presentation Seller Paid

Buyer receives shipment immediately on arrival by presenting identification required on Sea Waybill

Receive Shipment

Pay in 60 days

Buyer- Pays in 60 days- US Bank finances

with low interest rates

2

Seller- Gets Paid

1


Data LC

DTFDeep Tier Financing

15


Deep Tier Financing & Inventory Financing

Supplier Tier 1 BRACKET$1,000,000

Tier 2 Supplier BRACKET$600,000Sub Supplier BRACKET

$200,000Sub Supplier BRACKET$160,000

Money

Goods

withCash Flow SCRIPST2 gets paid on shipment by T1 using Buyer supplied scrip

T2

T1

Buyer

JITInventory Financing

17

T+30 T+90Net 30

T+60 T+120T+0

Trader holds inventory

Brackets allow Large Buyers to

- Hold Inventory with Just In Time ownership

- Efficient Asset Turnover Ratio

Supplier

Raw

Global Trade120 day turn around

30 day inventory

18Skuchain: Private & Confidential

JIT Inventory Financing 1/2

Big Box Buyer

works with

contract

SCmgr

shipments

S1

S2

S3

S43PL

accept shipment

sell to bank

receive funds

pay Supplier

C1 C2 C3shipments

accept shipment

pay bank

12

3

4

5

6

7

>

>

>>

>

>

>

>

19Skuchain: Private & Confidential

A set of Brackets elegantly manages this otherwise complex, expensive and difficult logistics and financing maneuver

JIT Inventory Financing 2/2

Track & Trace

20


Partial Solution for Tracking

Serialization is a process that can solve some Supply Chain Visibility issues.

However, Serialization comes with a number of issues:

1. it is Complex2. Expensive to implement 3. is Time consuming to integrate4. Partial solution

Serialization


The Full Solution: Popcodes

Popcodes: Proof-of-Provenance Codes

Popcodes are - unique cryptographic codes - that OEM’s mint (like currency)- to track their SKU’s on a blockchain - as they travel through the supply chain


Unique Cryptographic Codes

Sequential Numbers - makes labelling scale

Item 1- Manufactured in

Ireland- Date: 04/04/2016- Line: 23298- Value $23.97

Item 2- Manufactured in USA- Date: 03/17/2016- Line: 00978- Value $22.98

Item 3- Manufactured in

Croatia- Date: 12/06/2015- Line: 34342- Value $22.09

Item 4- Manufactured in USA- Date: 03/18/2015- Line: 00978- Value $22.98

Subassembly 1- Manufactured in Italy- Date: 05/04/2016- Line: 23298- Value $92.02

MetaData

Metadata on Each Popcode Unit

Value assigned to each item and assembly

Only the unlimited power of the Blockchain can give the depth of data required to deliver proof of provenance.


Proof of Provenance In Action

Item 32- Manufactured in Ireland- Date: 09/13/2015- Line: 90241- Value $22.09 - Null

- Quality Issue: Deficient plating- Returned to plant 902- Rework not possible- Credit ($22.09)

UHF and NFC radio signals for easy confirmation

Mobile Device Bar Code Scan

About Skuchain

25


Why Skuchain?

Qualified Team

Current Working Product

3

4

5 Active implementation roadmap with Top 5 Banks Big 4 Accounting Biggest Insurance Company

6 Patent Applications

Quickly Deployable

- Built with Blockchain technology and cross ledger compatible

1

New Business

- Creates new business opportunities for Banks.

- Immediate payoff.

2


Contact

[email protected]

+1 650-814-80811172 Castro StreetMountain View CA 94040 USA

http://www.skuchain.com

mailto:[email protected]

mailto:[email protected]