Unblocking the Bottlenecks and Making the Global Supply Chain Transparent

The contract can be set up so that the whole process is transparent and trackable, making it a prerequisite for subcontractors to fulfil not only the parts of the delivery per se, but ensuring it has the necessary paperwork and inspections that need to be met and displayed before executing the contract. [...] Hence, the importer needs to communicate directly with each one and make sure each has access to the necessary documentation.7 With blockchain, the documentation can follow the product, ensuring that one part of the protocol is followed before it is sent on to the next part. [...] The other part of the trade financing process is trade insurance, which is used to manage the risk of any part of the goods getting ruined along the way. [...] Research also shows that PURs are positively correlated to the value of the shipment (Keck and Lendle 2012) and trading firm size – the bigger the firm or shipment, the higher the PURs (Nilsson 2016). [...] François-Philippe Champagne, Minister of International Trade9 Blockchain makes it easier to monitor and trace to what extent both the product and the production process adhere to the progressive values set out in the agreement.