For B2B companies, it can be a virtual bank—moving money, accepting deposits, completing transactions and more. This differs from online banking where your business is subject to regulation, monitoring, business hours and other restrictions.
Blockchain technology helps B2B companies through:
• Efficient supply chains. The blockchain is open to all members of the network. An IBM report notes, “This ‘shared version of events’ enables improved supply chain efficiencies, better multi-party collaboration, and streamlined resolution processes when exceptions or disputes occur.” It does not replace legacy chain supply software, but it engages new realities like the expanding data flows presented by the Internet of Things.
• Improved sales processes. “The B2B sales process is based on relationships and responsibility,” said Jeremy Epstein, blockchain marketing expert and CEO of blockchain consulting firm, Never Stop Marketing. B2B sales relationships are ongoing, have a longer lifespan, and in general, require a longer sales cycle than B2C sales. “Trust is essential to B2B sales success and blockchain technology represents a way to expedite the creation of trusted relationships at lower costs” he continued. His eBook, The CMO Primer for the Blockchain World, points out that only 50% of businesses check buyer credit worthiness, request secure forms of payment, or both. And 81.5% of companies report employing credit management policies to mitigate trade risks.
• Ease and speed. Joe McKendrick points out that, with this open access system, “blockchain's value proposition is that it takes out the middlemen in transactions, enabling more autonomous types of engagements.” Easing and escalating the speed of financial transactions, blockchain replaces banks, credit card processing and checking. This reduces cost to B2B vendors and customers.