Supply chains are beset with enormous complexity due to the multitude of document copies duplicated between parties. Tracking, reconciling, and verifying a huge database of inventory, purchases, bills of lading, invoices, shipments, and receipts is challenging. However, blockchain technology can potentially drive value to the supply chain industry, offering substantial cost and efficiency benefits while eliminating problems with reconciliation, miscommunication, and poor contract enforcement.
Realizing the benefits of blockchain, supply chain companies are upgrading their business operations and partnering with enterprise blockchain consultants to integrate blockchain into their business operations.
How can blockchain reinvigorate the supply chain industry?
Blockchain use-cases for the supply chain industry explain how blockchain can potentially transform the industry. These use-cases are applicable across the supply chain and offer benefits that differ by organizations.
- Transparency and traceability
Blockchain provides unparalleled traceability. This helps mitigate traceability and transparency issues across the supply chain industry, allowing the companies to make well-informed decisions. The information related to the products is stored in a blockchain-based system that makes the data immutable and easily shareable, providing supply chain players with complete track-and-trace capabilities. Companies can use this information to provide proof of legitimacy for products.
- Increased efficiency and reduced cost
The global shipping processes are extremely complex due to the involvement of multiple stakeholders with conflicting interests. For example, a shipment of refrigerated goods from East Africa to Europe traverses through approximately 30 people and companies, with over 200 different interactions among the participants. Thus, there is an indispensable need to streamline the shipping processes. Blockchain holds massive potential to mitigate problems in the shipping process, providing transparency, visibility, and tamper-proof records of goods across the supply chain. Many enterprises, leveraging business transformation consulting services, are working in this direction to harness the potential of blockchain to enhance their efficiency and productivity.
- Smart contracts in logistics
A smart contract is a blockchain-based application that ensures the accountability of stakeholders in the logistics ecosystem. Smart contracts hold stakeholders’ pre-agreed rules of transactions and processes. Moreover, smart contracts accelerate custom clearances and approvals, reduce intimidating paperwork, and build security and trust among the stakeholders by implementing compliances to the already formulated and agreed rules of transactions.
Early investment in blockchain technology can help enterprises gain an essential competitive edge. However, for successful blockchain implementation, enterprises need to comprehend blockchain capabilities, select the right starting point for their industry, and harness the value of blockchain with a functional use-case.
At Millennial Partners, we operate as enterprise blockchain consultants, helping businesses with blockchain integration. We follow a coherent roadmap to identify and pilot blockchain use-cases, and implement blockchain solution.
Millennial Partners (millennial.ae) prides itself on serving clients’ most pressing organization transformational needs across people, processes, and technology through own proprietary frameworks. Our digital transformation offering is most relevant to the increasingly digital enterprise and consumer environments. Our digital transformation roadmaps include incorporating the most cutting-edge technologies and vendors focusing on technologies such as enterprise Blockchain, Artificial Intelligence, and IoT.
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