Blockchain transforms how companies connect with their customers, manufacturers, and operations partners by enabling them to create value together. Even if you have no prior experience in bitcoin trading, you can use Bitcoin Pro to execute profitable trades. It can be achieved by organizations bringing transparency to the supply chain and making it tamper-proof.
Driving transparency in supply chains is simple in theory but highly complicated in practice. It is because multiple parties govern the complex flow of goods, services, and monies involved over various stages of production – including manufacturers, suppliers, farmers, carriers, customs authorities, and regulators.
Each system tracks products or manages transactions that are not always shared with other participants along the chain. Blockchain technology is already driving change in many industries, but it is still in its early days.
Experts believe users can use blockchain to drive supply chain transparency – it needs just the proper framework for the complex industry it is being applied to and the right partners to help realize those outcomes. Here are my top three themes’ companies can consider when using blockchain for supply chain transparency.
1) Incentivizing transparency:
Implementing a transparent traceability system can be a perceived threat by parties that stand to lose business if product authenticity is confirmed or proven. A traceability solution must also provide benefits for all parties to incentivize them. For example, a blockchain-based system could determine who gets what share of the value for each product and whether a manufacturer, retailer, or another party should invest in introducing new transparency measures. This way, companies can implement a transparent traceability solution that creates value for all parties involved.
2) Delivering trustworthy solutions:
If a blockchain solution is going to be rolled out in more than one location, it needs to be flexible enough to adapt quickly to regional requirements. For example, the solution should be able to support local data storage requirements and incorporate regional-specific legislation, such as General Data Protection Regulation (GDPR), into its framework.
3) Supporting supply chain maturation:
While many are still exploring blockchain’s potential for supply chain transparency, it is becoming a standard tool in the innovation toolbox. More and more companies are working to mature their digital transformation projects by incorporating blockchain into their software development lifecycle. Although the technology is not yet mature enough to implement across large supply chains, it will be soon and should be a critical part of any company’s digital roadmap. As a result, blockchain technology will be a cornerstone of significant innovation in the next five years. The promise is that it can help businesses, governments, and citizens create a more secure supply chain – and a better world.
4) Improve visibility and compliance:
According to research firm IDC, more than 95 percent of enterprises are actively working to implement supply chain visibility and compliance programs. The global market for suppliers’ visibility and assurance (applicable to businesses) is estimated at $3.6 trillion by 2022. As the global market for supply chain transparency increases and standardizes, blockchain can take a crucial role in driving compliance, improving supplier transparency, and decreasing risk.
The benefits of sharing data among all participants in the supply chain have been well documented, mainly where blockchain has been applied to achieve a level of transparency previously impossible with existing approaches. Many companies have used intelligent contracts to manage intellectual property allocation effectively or optimize their shipping or warranty policies.
Blockchains have become a global way of life in a world where the latest innovation can be accessed by peers instantly. However, supply chain transparency is still in its infancy. It needs to mature as more organizations investigate how it can be implemented to secure and improve their operations. Companies in all industries should consider how they can explore this option and study how other companies are using blockchain to drive transparency – they will find many ways it can benefit their businesses.
5) Strengthen corporate reputation:
Blockchain makes supply chains fraud-proof, which eliminates the risk of unauthorized manipulation. It, in turn, can help a company strengthen its reputation. A blockchain-based solution can be essential for improving companies’ reputations through transparency, traceability, and compliance.
As a disruptive technology, blockchains are still not yet widespread in all industries. However, supply chain and logistics have been identified as one of the primary areas where blockchains could be applied to create more excellent customer value.
However, supply chain traceability is still in its infancy. Many potential issues need resolution before they can be applied to real-world solutions because no established framework exists yet to guide companies safely through their deployments and operations. The need for a transparent methodology and good governance model will become more critical over time as the technology matures. The main differences between traditional scares and blockchain-based solutions are transparency, immutability, and cost.
