Who Is Using Blockchain In Supply Chain
Today, a lot of companies leverage Blockchain for supply chain because the benefits of blockchain in supply chain are immeasurable. In this digitized environment to sustain in the market, one should be open to new technology and stay ahead when it comes to blockchain development. As companies become more globalized, blockchain applications in supply chain management solutions that are both reliable and efficient are becoming increasingly important. Companies using blockchain in supply chain includes Walmart, Ford, De Beers, Nestle etc. to name a few. Nevertheless, companies using blockchain in supply chain are spread across various sectors including banking, financial services, retail and consumer goods, government etc.
Blockchain In Supply Chain Management: A Solution To Enhance Consumer Experience
Blockchain technology has become the most comprehensive and propitious technology in the tech world today. It is promising as it upsurges transparency in an ascendable manner for a large variety of applications by reducing the risk and averting fraud. Blockchain, the digital immutable ledger technology that underpins Bitcoin and other cryptocurrency networks, has the potential to revolutionize the financial industry. Thus, Blockchain in supply chain is yet another field that has innumerable potential and solutions to enhance consumer experience.
In Blockchain technology, the best thing is that its decentralized network prevails among all permitted parties thereby saving time. Despite blockchains putting up their own issues, sectors including governments, banks, and other financial sectors are immensely driven towards them.
However, blockchain in supply chain management is another area where it has a lot of potential. By enabling faster and more cost-effective product delivery, strengthening product traceability, and better coordination, blockchain can significantly improve supply chains. Let us now understand what exactly is Blockchain in Supply Chain Management,
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How To Implement Blockchain In Supply Chain Management
At different levels, businesses strive to deploy transparency, fair trade, sustainability in customer purchasing decisions. However, complex and non-integrated supply chain networks make it difficult to implement these principles.
A large number of organizations have started incorporating Blockchain in supply chain management to make all processes more transparent and better-organized. According to Statista, 55.3 percent of logistics service providers state that they invested money in Blockchain technology in that area.
In this article, our experts will evaluate the real potential of Blockchain technology in supply chain management and consider use cases.
Aia Group: Blockchain Enabled Bancassurance
One of the finance companies using blockchain is AIA Group. In reality, it has implemented blockchain technology and in the process launched the first blockchain-enabled Bancassurance. The solution will make it easy for the company and its bank partners to share policy data as well as documentation on a real-time basis. The solution should also lead to increased transparency as well as reduced processing times
Integration of insurers IT systems and legacy bank systems have always been a big problem. However, with the digitization of the bancassurance channel, banks should be able to pick and use their software of choice.
The implemented blockchain-powered bancassurance should deliver significant revenue for life insurers. It should also help insurers engage more effectively with consumers while improving turnaround times.
Check out the importance of blockchain in insurance industry now!
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How Does Blockchain Technology Reduce Counterfeiting
The Global Brand Counterfeiting Report, 2018 estimates that the losses suffered thanks to online counterfeiting globally have amounted to 323 Billion USD within 2017. Counterfeit commodities account for nearly 188 billion dollars of lost revenue regarding prescribed drugs alone. Blockchain enables a private to verify that a product was sourced accurately and ethically.
Documentation counterfeiting and fraud also are common among diplomas, certifications, and official identification. Blockchain records can transparently verify certifications and official legal documents and coordinate record-keeping immutably, preventing counterfeiting or fraud.
How Much Blockchain Should You Use
Supply chains usually need holistic management to work well. Actions in one area often have impacts in others. For instance, you might try to lower inventory to save money. That can then cause delays in serving customers. Your efforts to save money end up hurting customer satisfaction. Some technologies, like AI, also need to be applied with the whole supply chain in mind if they are to bring real improvement.
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Apple: Blockchain To Timestamp Data
For the longest time, Apple has been mum on whether it sees potential in blockchain technology being part of its massive empire. The filling of a new patent has, however, put the debate to rest having emerged that the company could be planning to use the digital ledger technology to create and verify timestamps.
So, at present, they are still exploring how to implement blockchain in business.
Toyota: Blockchain To Enhance Autonomous Driving Technology
Japanese auto giant Toyota is considering implementing blockchain technology to accelerate autonomous driving technology. The companys research unit has teamed up with MIT Media Lab to foster a digital environment whereby people and businesses will be able to share autonomous vehicle data as well as manage ride-share and car-share transactions
The two are working with other partners to develop applications as well as proof of concepts to enhance mobility in the auto industry According to the company blockchain implementation will help people become more comfortable with autonomous technologies.
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The Benefits Of Blockchain In Supply Chain Management
In this era, every day marks the beginning of new technological advancements, where customers needs take a seizure every day. Blockchain technology with its ability to program business logic aids transparency, accurate asset tracking and enhanced licensing of products, services, and software. Nevertheless, Blockchain in Supply Chain Management can be advantageous as blockchain can be applied to logistics to improve the efficiency of business processes and to reduce supply chain infrastructure expenses.
The benefits of blockchain in supply chain do not stop there. While banking and financial institutes are nowhere away from enjoying the benefits of blockchain, it is undeniably a matter of uncertainty that how does blockchain make supply chain management more efficient? The answer is simple. Supply chain as the term stands for comprises of supply networks of suppliers, manufacturers, distributors, retailers, auditors, and finally the consumers. Now a blockchain shared IT infrastructure streamlines the workflows for all the parties irrespective of how large the business network is. Thus, this infrastructure enables the auditors to have a superior perceptibility into the activities of the participants along the value chain.
How Blockchain Is Addressing The Supply Chain Management Sector
Supply Chain Management is characterized by large, complex datasets which often cause bottlenecks and delays. With the advent of modern technology, blockchain can resolve this concern through automated software solutions for the SCM sector. And as new use cases are being discovered, organizations are realizing the untapped potential of Blockchain to tackle the common issues of SCM around efficiency, information sharing, and traceability.
We are here to explore how blockchain technology can help the SCM sector and the overall benefits of adopting blockchain technology into a business.
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Social Sector And Supply Chain Sustainability
Blockchain can create high impacts to society. This is a critical area to be examined. In particular, sustainability improvement using blockchains needs to be studied more at different organizational levels: strategic, tactical and operational levels to understand the most relevant factors affecting the adoption of blockchain technology in sustainable and ethical SCs.
For a sustainable SC, culture among the partnering firms is very important. Every organization differs in terms of SC analysis and tracking of transactions. Blockchain and IoT applicability must be understood in the industry context with a special focus on the respective norm and culture, before jumping on to implementation. For example, for blockchain applications in agro-SCs, there are barriers for adoption in domains such as ownership and quality of data, privacy concerns, platform and technology challenges and overall integration of sustainability goals . These issues must be explored further in details for case to case basis across various countries.
Therefore, combining blockchian with complementary technologies, such as big data, cloud computing and machine learning, can further augment the effectiveness of blockchains applications in SCs and their impact on overall social, environmental, and economical sustainability.
Our Model: Blockchain Game Approach
The concept of blockchain, like deep learning and most of the recent technologies, is difficult to assimilate for untrained people. Interacting and manipulating tools simulating these concepts greatly helps their assimilation. It is therefore, with the aim of enabling the supply chain community and its students to understand what the ins and outs of the blockchain are and how it can impact the supply chain, that we have created a supply chain simulation game integrating the key concepts of blockchain.
This game allows players to understand how the blockchain is useful in a supply chain. Furthermore, the game will include several different versions in order to adapt to various audiences.
The main principle is to offer teams to simulate a traditional supply chain. Each member of each team will be assigned a key role of the supply chain .
Each team will aim to maximize the overall performance of its supply chain. The overall performance will be calculated according to two criteria: the financial health of the company and its customer satisfaction. All players will develop, according to their respective role, their supply chain by creating new factories, warehouses, roads among other things. Those improvements will facilitate their business development. At the end of the game, the team with the most efficient supply chain will win.
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Ups Blockchain: Logistics System
United Parcel Services has joined the Blockchain in Trucking Alliance for implementing blockchain solutions for the multibillion-dollar freight industry. The alliance is planning to spur standards development for the shipping industry through the implementation of a secure blockchain system.
Under the alliance, they are planning to develop new innovations that can offer an efficient and cheaper logistics management system. A large number of brokers, as well as hidden information across complex supply chains, are some of the challenges that blockchain technology will solve in the industry as part of the latest push.
Anheuser Busch Inbev: Blockchain For Supply Chain
This is one of the largest brewer enterprise companies in the world at the moment. At present they are using blockchain for their supply chain. Together with BanQu, they want to increase the overall transparency of their systems. More so, it will actually trace and increase the transparency of their Cassava crop chain. Thus, it will also empower over 2000 farmers in Zambia.
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Blockchain And Its Implications On Supply Chain Operations
The blockchain supported transaction journey.
Blockchain has an immense potential to transform every step of SC, from raw materials procurement to distribution to the consumers . It also enables SC reengineering by establishing a blockchain-based BPR framework . Every transaction made can be restructured using blockchain technology and the journey can be made faster and more secure.
The structure of the blockchain is organized in a way such that it ensures security and transparency of SCs. We outline the related mechanism of a typical blockchain system as follows. Each block in the blockchain has a hash number , which is created with consensus by a scientific algorithm. The blocks are linked to each other with reference to previous blocks hash which creates a secure and independent chain. Before adding blocks to the blockchain, they need to be validated, which can be in the form of proof of work which is known as blockchain mining. After validation, block becomes a part of the networks auditable and immutable blockchain. There is also a built-in defense mechanism. To be specific, any corruption which is detected by the blockchain as malicious will be captured and defended. The corrupted block in the infected node will also be corrected.
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Aim For Data Interoperability
To get the most from blockchain, the technology must be well-integrated into the current technology ecosystem.
“Blockchain technology must be implemented as a feature adhering to your wider data governance strategy,” said Brian Platz, co-CEO and co-founder of Fluree, a blockchain-based data management platform.
Blockchain technology should incorporate data management that is interoperable with the organization’s standard ERP systems, he said.
“Too many times have we seen a disconnect between public blockchain platforms with obscure programming languages like Ethereum and enterprise data requirements,” he added.
Bhp Billiton: Blockchain For Supply Chain Management
Mining giant BHP Billiton is also implementing blockchain technology as it looks to enhance its supply chain processes. The company intends to use the distributed ledger technology to record and trace movements of the wellbore rock and fluid samples. By leveraging the technologys capabilities, the company should be able to secure real-time data generated during delivery.
The blockchain system should allow the company to enhance internal efficiency thus allow it to work closely with partners. The company also requires vendors to use blockchain technology through solutions provided by the likes of BlockApps and ConsenSys to collect live data.
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Challenges Of Implementing Blockchain In Supply Chain Management
Despite offering many benefits to logistics and supply chain management, only a third of all providers are currently implementing the technology. Whats holding companies back from implementing such an efficient innovation? Lets address the most common concerns within implementation of blockchain in supply chain.
On-boarding suppliers to blockchain platforms
Logistics providers can be enthusiastic about implementing immutable ledgers into their workflow, but suppliers are often unfamiliar with the benefits offered by the technology. Some of them might be skeptical about the idea, while others think its too difficult. Logistic companies need to show the clear benefits of using the platform. All successful examples provide partners clear benefits increased transparency, improved product control, and more comfortable billing. If logistics providers can communicate this additional value, its possible to navigate through the doubts of suppliers.
The complexity of the blockchain
The technology itself can be difficult to grasp for people with no deep technical expertise. Understanding the structure of the immutable ledgers, their security protocols, and data algorithms take a lot of time and research.
Poor compatibility of blockchain with ERPs
The lack of IT infrastructure
Sharing confidential information
Baidu: Intellectual Rights Management
Baidu is another Chinese multinational that has provided a good blockchain implementation example. The search giant has launched an image rights management system powered by blockchain technology.
In reality, the system provides a way for photographers as well as photo agencies to create profiles and be in a position to claim copyrights to their images. The comptECH any appears to have borrowed a leaf out of Kodaks photo tracking system KodakOne.
The company has also unraveled a good example of blockchain implementation in the gaming sector. Leci Gou is the companys new blockchain-powered pet rearing game that is somehow similar to the CryptoKitties. The game serves as a marketing and loyalty program as players can earn crypto puppies as well as game credits on purchasing Baidu products.
In addition, Baidu has launched an open platform that allows enterprise developers to build blockchain-based applications focusing on areas of digital billing and bank credit management.
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Choose The Appropriate Platform
Depending on the factors above and others in accordance with the specific needs of your business, we must choose the platform wisely by not moving towards cost-cutting this time at least. Many blockchain platforms are open source and are free to use. But, if there is an issue, it is more likely to be in the engineering resources that are required to make the platform become tailor-made to meet the requirements.
As Blockchain solutions multiply, ease of use is also improving but the technology inside is still complex. Thus it becomes equally essential to choose the platform wisely.
Applications Of Blockchain In Different Supply Industries
Understanding the applications of this technology in different aspects of logistics and supply chain management will provide business owners with a better understanding of how blockchain can be used within their companies.
There are just as many innovations that could be used to rebuild logistics and supply chain management. Smart contracts, ledger records, and tokenizations can help businesses manage transactions, track down each step of the product delivery, improve bookkeeping and accounting, and so on. Lets go over the most promising blockchain applications in the supply management industry.
Automotive supply chain
Due to globalization, the supply chain for automotive companies is way more dispersed. While Toyota cars are labeled as Japanese, their parts are created all over the world to later make up a cohesive whole. Needless to say, taking control of such a complicated process comes with its challenges.
Blockchain ledgers can improve the cooperation between all parties involved in the manufacturing process. Apart from increasing the quality of oversight, blockchain allows automotive companies to pinpoint the source of a flawed shipment.
There are several projects aiming at creating transparency within automotive supply chains. The most notable one is MOBI a blockchain-powered non-profit contributing to increasing accessibility and mobility.
Food supply chain
A few notable projects in the field:
Drugs and Pharmaceuticals
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