The Novel Coronavirus Disrupts the Entire Global Supply Chain

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Even if you are buying from factories in India, Vietnam and Myanmar, many of the materials to finish off a product still depend on Chinese producers.

The deadly novel coronavirus that has devastated the Chinese economy is having a ripple effect across the globe. And while it has hit the lucrative auto, tech, energy and tourism industries particularly hard, it is also hurting the small businesses that shape everyday life in just about every corner of the world.

The food we eat, the work we do and the clothes we wear are all daily reminders of the vital role China plays in the global economy.

Read more about how the coronavirus is a daily reminder of China's global reach.

b_verify: Disrupting and Redefining the Global Supply Chain

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Despite their scope and impact, SMEs have a harder time getting financing than larger established firms. According to the World Bank, it is estimated that their global financing shortfall is around $2.6 trillion.

“The potential benefits are vast and global in scale,” said Gerry Tsoukalas, Wharton professor of operations, information and decisions, who was part of the team [from MIT, Wharton and Boston College]. Small and medium-size enterprises, he said, represent the backbone of many economies in the world, and they account for more than half of the jobs as well as a third of global GDP.

This leads to the creation of a new blockchain-based system that has the potential to disrupt the global supply chain. Called ‘b_verify,’ the system is designed to help small and medium-size enterprises — especially those in developing nations — get financing from lenders at potentially better terms while mitigating warehouse deposit fraud.

Learn more about 'b_verfiy', the benefits, and how it can disrupt the global supply chain.

Related paper:  Blockchain and the Value of Operational Transparency for Supply Chain Finance