Blockchain is a revolutionary technology that has the potential to be a complete game-changer for many industries, including supply chain. With the rise of globalization, supply chains are now much more complex than ever before in history. Consequently, the time is ripe for a disruption of this process; blockchain is one possible instigating factor. With distributed ledgers, the process of recording and storing information is greatly simplified, which saves time and effort in traceability while increasing system transparency and user privacy. Moreover, smart contracts allow for the automatization of many processes which were heretofore much more time-consuming. Blockchain boasts a perfect track record in eliminating risks related to errors in record keeping, database issues, and difficulty of navigation through relevant information.
In our exclusive first-look, the FinTech Advisory Services report “How Blockchain Can Disrupt Supply Chain?” provides an overview of how supply chains could benefit from blockchain in the use cases that have been already implemented, using the banana market as an example. Bananas are considered to be the world’s most popular fruit, and as such, are transported in massive amounts. During the process, they go through multiple ripening stages to become palatable to consumers. Storing the ripening process data on blockchain would significantly reduce transportation costs and enhance traceability of delivery processes. Supermarkets would furthermore know the exact time when bananas start browning, and aim to sell more of them before that time by offering an additional discount.
Many large companies have already started to rely on blockchain technology in their supply chain operations. For example, Walmart, in collaboration with IBM’s Hyperledger, drastically reduced the time required to trace mangoes from 7 days to 2.2 seconds. Dutch supermarket chain “Plus” is planning to implement blockchain technology in tracking bananas, which will allow them to track individual bananas from the moment they leave the plantation up until when they are sold to the end customer. We expect that supermarkets will be shifting to blockchain technology more and more, as will other industries that require quick and precise tracking mechanisms. This will result in the reduction of food waste, overall quality improvement, and increased traceability and transparency. Consequently, supermarkets will benefit from the cost reduction and be able to improve upon their budget and product planning in the future.
The future of blockchain application in supply chain is extremely exciting, and we expect to see more and more companies using this technology in their business operations, as is only natural given the undeniable benefits of implementing blockchain.