Blockchain & Supply Chain
Even in the current digitalized world, Supply Chain efficiency can be extremely improved. Blockchain-tech with the usage of smart contracts enables transparency of consumer goods from source to final consumption, advanced tracking and improved licensing. For example, in the container shipping industry, paperwork can account serious expenses. Besides, consumer goods such as pharmaceuticals, electronics, and luxury brands, are high-risk to fraud and counterfeiting. Private, public, and hybrid blockchains will bring trackability, transparency, authenticity and accountability to the motion of products.
So, the blockchain-tech can cut costs from logistics in the Supply Chain infrastructure.
The Supply Chain is a complex network which contains manufacturers, suppliers, distributors, retailers, consumers, and auditors. A shared blockchain infrastructure could streamline processes & workflows for all participants. Finally, the blockchain-tech has the ability to cost-savings and improve customer experience through transparency, trackability and negotiability.
Blockchain use cases in Supply Chain management
Blockchain-tech can optimize the Supply Chain with these 3 use cases:
- Traceability optimizes operations by charting and visualizing supply chains. An increasing number of consumers demand origin information about products. The blockchain-tech can help organizations with this demand through genuinely, verifiable, and invariably data.
- Recalls, sometimes it happens that products needs to be recalled in order to prevent dangerous situations. This results in lost sales, replacement costs and lawsuits. In some cases, blockchain-tech can prevent recalls, in other situations, it could support and improve the streamlining of the recall.
- Transparency gives trust, by publicly showing key data such as claims and certifications. When registered on the blockchain, authenticity can be verified to 3rd parties and information can be updated in real-time. Diplomas, certifications, and other official documentation are also often a victim of counterfeiting and fraud. With the blockchain-tech individuals can verify the source of the product, for example, the ethics.
- Negotiability. Another unique concept of the blockchain is improved marketplace innovations. For example, the capability of tokenizing an asset by splitting the asset into shares that digitally represent ownership. This can be compared to the traditional stock market, where you have the possibility to trade shares of a company. These tokens can be traded and thus, transfer ownership without the need for physical exchanging the asset. Another benefit, traders have the capability to verify past ownership.