Blockchain for supply chain solutions
In order to make supply chain more reliable in terms of shared data, trusted partners can be helped through permissioned blockchain solutions. This will affect the way that consumers and businesses view brand authenticity and better responsibility expected from supply chain to reduce disputes. Therefore, suppliers will need blockchain solutions to handle data to solve the challenges of today and to create better efficiency for the future.
The benefits that are expected from blockchain solutions in supply chain activities will include:
1. Increased supply chain transparency – through distributed ledger technology, blockchain solutions will provide a single version of the correct position for those permitted to see the activities on the supply chain.
2. Build a resilient supply chain – where disruptions happen, blockchain solution trigger smart contract when certain agreed conditions are met. This will help to control operations efficiently.
3. Streamlined supplier onboarding – blockchain solutions can capture details of new vendors through immutable records to speed up process of onboarding.
Blockchain technologies can be effective in vaccine distribution step by step to build trust from manufacturers to end users. Through blockchain, faster transaction is achieved through real-time visibility. In the area of food, blockchain brings together farmers, distributors and retailers in collaborations to achieve confidence in food supply.
In the aspect of logistics, importers, freight forwarders and customs authorities work in collaboration powered by blockchain technologies, make logistics easier. Also, digital identity verification for procurement helps to bring in vendors through digital identity to reduce time in processing.
Blockchain for supply chain case studies
Driving auto supply chains forward blockchain
This has been made possible by Renaults’ partnership with Blockchain technology to implement solutions. This technology has been launched since April 2021 by Renault, Faurecia, Simoldes, Knauf Industries and Coskunoz. With blockchain, auto makers and suppliers share information on compliance across trusted network. This reduces time spent on processing paper work and customers are served better with authentic compliance status from auto makers like Renault. With blockchain, Renault is able to look into the future to have achieved ecosystem that brings more opportunities of value addition.
Increasing trust in retailer-supplier relationships
Blockchain technology has helped Home Depot to increase its visibility in the supply chain and has allowed participants to forge better relationships through fast resolution of issues. This is possible when information from different points of the supply chain is sent to the cloud, within the reach of permissioned partners. This provides trusted data with which facts determine quick decisions that are taken between parties. Blockchain solutions performs more effectively where stakeholders place their concerns on the table and valid information are used to build up expectations in the kind of network required by Home Depot. Blockchain has been able to solve issues ranging from supply chain documentation to new vendor onboarding.
Visibility in the oil and gas industry
The success of blockchain technology in the oil and gas industry has reduced greatly the disruptions that are known by many. Blockchain is set through multi-cloud technology. This innovative solution like IoT sonar sensors on tanks, gives actual usage of propane by clients and alerts supply chain real time the needs of consumers. So, this achievement in the oil and gas industry by blockchain technology, helps consumers of gas-related products, manage well in times of disruption, which is great value addition. This is possible because, with Blockchain, it is possible to get weather data, logistic data, transportation data and gives better insight to participants involved in the ecosystem. This becomes the improved work situation where visibility of the integrated parts help in the efficiency of the oil and gas sector in delivering quality services to its customers everywhere possible. Furthermore, with all the available data at the disposal of participants, they can make sound judgment on expected increase in demand of gas-related products due to a polar vortex. And to take action to close gaps that may result from such situation.
To achieve the goal of reducing waste by retailers, it is necessary to gather all the data and to determine the right ones to be deployed into the blockchain that will be essential for the system to operate effectively. All the participants are expected to be properly informed, which should be made possible by visibility of information powered by the blockchain solutions technology.
Advancing global trade with blockchain
Global trade is key for development and organizations are more interested on how they can move the margins beyond profitability. Network has become the new measure for increasing returns on investment (ROI). Blockchain networks has contributed to the success of organizational relationship with their customer base. This level of success and more can only be achieved in global trade conditions when organizations understand when they can share data and when not to do so. Also, to be able to determine if the channels are trusted and open to permissioned participants. Where data cannot be exchanged for value, organizations can lose a measure of their global competitiveness. This brings the factor of trust which is key for successful operations on global market place. Blockchain technology provides the neutral mediator that offers fair, open governance and standards by which all participants can rely on in global business.
The advantages of blockchain technology will include its ability to reduce unseen friction in global business, reduce cost, save time, reduce risks and create new business models. Even in the face of Covid-19, organizations will seek to vitalize their digital efforts by shifting their priorities and correcting the course of their blockchain initiatives accordingly. Survey conducted in relation to the impacts of blockchain to global trade with 1,000 executives from 22 industries across 34 countries reveal the following insights and action plan:
1. Expectations and landscapes of blockchain with relations to value creation.
2. Trusted marketplace can promote data-driven and global economy using blockchain.
3. Approach to establishment and governance of interconnected global network.
Blockchain is the new profitable investment going forward because it can positively affect returns on investment. This will be made possible when it is built into a blockchain ecosystem with network that carries out its roles, with their governance priorities. An example of a blockchain network is Food Trust and Thank my Farmer. This network offers data for participants to enable them show traceability, transparency, to increase their efficiency and to optimize the supply chain.
In the same way, blockchain is driven by purpose. Every group on the blockchain operations use blockchain for billing, settlement and payment depending on what they do. Whatever group one falls, it is observed that network development is the highest cost that Builders face. Joiners on the other hand gain the economies that has been developed over time. While Expanders are at the inflection point of consuming or adding to the value on networks. Over time, the possibility of redistributing returns in networks is made possible by the changes that take place in given conditions.
The benefits of blockchain network may be seen in we.trade; a joint venture between 12 major European banks. This blockchain-based trading allows small companies to participate and reduces the risk involved. So, it serves as a one-stop-shop that attracts financial services, logistics and insurances firms. This increases the overall number of players on the platform, resulting in huge growth. As part of expected action organizations should be able to participate in many ways. To enable this, it is required that organizations connect expeditiously, build ambitiously, and expand collaboratively.
Counterfeit prevention in pharmaceuticals
Blockchain technology solutions implemented in the pharmaceutical supply chain has been able to ensure greater transparency in the operations of firms and the visibility that is accorded permissioned participants in the many processes. The application of blockchain solutions to pharmaceuticals deliver speed, visibility, coordination and safe-guard the drive towards quality and effective products. Some of the benefits that comes with blockchain delivery will include the following:
1. Integrity will be established with strong monitoring of the supply chain. In this way contaminated high-value products will be identified and eliminated from the process.
2. It will aid the war against fraudulent activities on the shelves of pharmacy stores due to visibility and data sharing capabilities of blockchain.
3. Cost and time will be better managed with blockchain technology solutions in the pharmaceuticals. Huge data analytics will provide information and improvement of inventory will be the gain.
4. With shared data on immutable records, regulation on drug trafficking will be better addressed with digital IDs.
Responsible sourcing of minerals
With great responsibility towards sustainability in every sector, it is proper for mineral sourcing to be carried out with the highest level of accuracy and the supply chain check-mated with traceability. The incidence of blockchain technology solution in this area is a welcome development. Increase in demand for raw materials has triggered off different approaches that indicate lack of sustainability.
However, global demand for Li-ion batteries is expected to grow by 19% by 2027 and market value for raw materials placed about 52 billion. In order to achieve smarter supply, there is need for transparency, accountability and trust. At this point, blockchain technology is handy to help in building better sourcing and collaborations between partners. The blockchain technology is vital in tracing raw materials and providing end-to-end traceability from mine to manufacturing plants. Some of the benefits of implementing blockchain in sourcing minerals will include the following:
1. Aids the documentation process of immutable audit from mining to manufacturing end product.
2. Allows for traceability and shared data between permissioned participants.
3. Ensuring that information and certificate of responsible production cannot be tempered with.
4. Protecting competitive confidential information.
5. Ensuring trust is shared in a decentralized way.
6. Cutting cost through digital processes.
7. Scaling fast to open opportunities for new entrants.
Implementation of Blockchain technology solutions in mineral sourcing guarantees efficiency of exchange, reduce cost and enables a better environment for participation and impact.