There are many companies designing supply chains, so we look at why electronic contracts are favored by companies from the perspective of the supply chain.

The supply chain is a main system composed of suppliers, manufacturers, distributors, retailers, transporters and end users of raw materials involved in product production and circulation. In the various activities and processes of the supply chain, hundreds of links need to be spanned, multi-level materials, geographically dispersed, numerous individuals and entities involved, and a wide variety of documents such as lists and contracts involved. For enterprises, it means thousands of lists and contracts of various types. Traditional paper contracts have low efficiency and high costs. The storage of paper contracts accumulated over many years also requires a huge amount of money. The risk of tampering and loss is also high, and it is difficult to trace back. There are very large legal risks.

The emergence of electronic contracts may become one of the effective means to improve the quality and efficiency of the supply chain. How is this achieved?

Cost

There are many supply chain participants and the demand for contracts is huge. Contract costs include printing fees, labor costs, postage fees, etc. It costs an average of 20 yuan to sign a contract. The electronic contract completes all signing steps online without printing or mailing, and the cost is only about 10% of that of a paper contract.

Efficiency

The supply chain generally requires the participation of multiple departments. The signing of a paper contract requires face-to-face signing or signing by mail. The average time is about 3 days. The more parties involved, the more The longer it takes. In a long supply chain, if the signing time of one link is too long, it will affect the entire supply chain process and easily produce variables.

Electronic contracts can be signed instantly online and can be completed in a few minutes. Signing electronic contracts with confidence also supports online viewing of the contract signing process and a one-click contract signing reminder function to improve the overall efficiency of the supply chain.

Identity Authentication

During the signing process of paper contracts, it is easy to produce proxy signatures, counterfeit signatures, carrot stamps, etc., and repudiation is also common. Supply chains generally involve huge contracts, and if something goes wrong, the consequences will be serious.

The electronic contract supports multiple identity authentication methods such as ID card, mobile phone number SMS, bank card reserved mobile phone number, and face recognition to ensure the identity of the signatory and strengthen the authority of business approval in various approval processes. The nature and traceability of evidence are legally binding and prevent the occurrence of repudiation.

Data Security

There are many paper contracts, orders, and bills in the supply chain. They are easily tampered with, lost, and damaged during the mailing, signing, and storage management processes, and are difficult to trace. If When it comes to contract disputes, you will be on the weak side.

Electronic contracts use electronic signature technology, timestamps, CA certificates, and multi-party joint storage of blockchain certificates to ensure that electronic contract data cannot be lost or tampered with. If you encounter a contract dispute, you can apply for a certification report and apply for online arbitration with one click to safeguard the rights and interests of users.

The emergence of electronic contracts improves signing efficiency, saves costs, is safe and efficient, empowers the supply chain, and helps enterprises reduce costs and increase efficiency.