Why blockchain is quickly becoming the gold standard for supply chains — from datafloq.com
Excerpts:
Global supply chains are complex processes. Different companies, with distinctive objectives, are working together to achieve a common goal; to bring something from A to B. For a supply chain to work, partners have to trust each other. To do so, there are multiple checks-and-balances, extensive documents and different checkpoints all interacting in a web of bureaucratic processes. Knowing the amount of paperwork required to send a product from farm to plate, it is remarkable that we have managed to develop global supply chains.
However, the processes in place are time-consuming, expensive and they don’t always prevent growing problems such as counterfeit products, fragmentation and falsification of data, lack of transparency, extensive settlement times and incorrect storage conditions.
Especially the availability of counterfeit products is an extensive problem. Research showed that 20 out of 47 items audited from renowned retailers such as Amazon or eBay turned out to be counterfeit. This results in annual damages of $1 trillion of missed income by retailers and manufacturers.
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Three use cases of improved supply chains
- Beiersdorf – developing an open pallet exchange
- Bayer – total recall of pharmaceuticals
- Kellogg’s – food quality and safety first