Blockchain technology for supply chain — Truth or Myth?

BLOCKCHAIN
Supply Chain
TRACEABILITY
Blockchain technology for supply chain — Truth or Myth?

08/04/2020

What is Blockchain?

Blockchain is the name of new technology for storing, recording, and handling data based on internet protocol. It is first introduced in 2008 as a digital cryptocurrency named Bitcoin, which is the independent form of currency existing digitally. Blockchain is the platform for validating, distributing transactions immutably as a form of encrypted and decentralized ledger. Therefore, Blockchain can operate independently by thousands of computers joining the network.

Blockchain technology is more secure and transparent than traditional technologies. Because all information is encrypted by complicated algorithm and verified by all participants of Blockchain. Every transaction is recorded on a “block” and shared through multiple copies of the ledger. That means records can’t be altered retroactively, and Blockchain is highly transparent. Thanks to the decentralization nature of Blockchain, there is no central point for hackers to attack. If the hackers want to hack the Blockchain, they have to attack all the computers in the network, and it is impossible. Therefore, Blockchain is currently the most secure and transparent technology.

 

Is it valuable to the Supply chain?

Obviously, Blockchain brings significant value to the supply chain because of its attributes of security and transparency. The supply chain has never been simple and comprised of various components; procurement, production, logistics, sales, and customer services. Consequently, tracking the product’s journey from the beginning to finished products is difficult. Take agriculture as an example; the supply chain includes thousands of growers, farmers, processors, packagers, and result in a product which has changed transferred multiple times before reaching the shelves.

Having traceability system, enterprises can identify the root cause of problems efficiently and accurately, minimize costs lost due to the problems, and analyze the current supply chain operations for improving. Traceability is also a revolutionary tool to fight against counterfeit products. By providing consumers tracking tools from the traceability system, they could distinguish the authentic products with a counterfeit one. The visibility helps organizations control their supply chain entirely and gives consumers convincing reasons for buying their products.

Combining Blockchain and traceability, enterprises will optimize not only their supply chain, but also their operations in terms of sale, marketing, and customer services. Thus, Blockchain earns values to the business supply chain as following beneficial:

  1. Optimize overall processes: Blockchain traceability can replace the traditional ways of handling data based mostly on paper. Enterprises can record, retrieve the information seamlessly, automatically with high accuracy.
  2. Increase visibility: Making the traceability accessible to consumers transparently is the adaption of organizations to consumer demand and regulatory. Businesses can better control their overall activities as there is adequate trustful information for the business leaders. Thereby, mitigating the costs relating to quality problems, loss of revenue due to black- or grey-market products, and improve business efficiency.
  3. Technology advantages: Businesses that have foreign trade activities should think about using Blockchain because it is faster and more cost-efficient compared to the centralized system. Moreover, Blockchain platform has secure, transparent and high scalable characteristics that are worthy for businesses to invest in order to obtain competitive advantages.
 

                                                             Advantages of Blockchain in supply chain

The truth is…

The application of Blockchain in the supply chain seems to be more theoretical than practical as most of the readers may think. However, there are many big names, and new startups are aiming to apply Blockchain into their business to make the myth become the truth. Here are some success stories and news about it:

  • Novartis — A customer of Oliver Wight pharmaceutical has plans to utilize blockchain since 2016 for anti-counterfeiting purposes.
  • Mastercard announced their investment in blockchain to enable customers to trace the product journey.
  • Walmart plans to use blockchain to control the safety of foods. They piloted an application tracing pork in China and produce in the US, to authenticate transactions and the accuracy and efficiency of record keeping.
  • Nestle has already used blockchain to track the origin of food ingredients.
  • Maersk and IBM are developing cross-border, cross-party transactions using blockchain to improve process efficiency.
  • WOWTRACE — a startup specializes in providing blockchain-based traceability solutions in Asia has successfully deployed Blockchain traceability for a wide range of products including mango, organic vegetables, high-end chocolate,…
 

                                    Explanation of WOWTRACE’s Blockchain-based solution for supply chain

With many proven records about the Blockchain application in the supply chain, businesses now are more confident in investing in Blockchain to gain advantages in the market. Visit here for more success stories of Blockchain application.

About WOWTRACE

WOWTRACE is a completed ABCD (AI, Blockchain, Cloud, Data) Traceability Solution that brings sustainable growth and transparency to the supply chain across Asian countries. Thereby, all stakeholders achieve end-to-end visibility and control over their operations on the supply chain.

Learn more about WOWTRACE at: https://www.wowtrace.io/

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