Is it worth for business to invest in Blockchain Traceability?

BLOCKCHAIN
Supply Chain
TRACEABILITY
Is it worth for business to invest in Blockchain Traceability?

08/04/2020

Making a decision for investment is never easy for business leaders. The decision-makers have to figure out carefully all possible alternative options, estimate the scenarios that may happen, evaluate the returns on investment, and assign resources for investing. The processes are even more difficult and critical for them when investing in a new aspect that they have never experienced to be the pioneer in their fields. The same thing is for Blockchain — a promising technology that can transform the world as the Internet did. Businesses now are concerning investing in Blockchain, especially for Traceability, which can help them acquire tremendous competitive advantages. Like the dawn of the Internet, business leaders have limited knowledge about Blockchain and its application for their business. Therefore, this article helps them to answer the question “Is it worth to invest in Blockchain Traceability?

Blockchain Traceability could help saving costs

89% surveyed experts believe Blockchain Traceability will save costs for enterprises, according to Capgemini research in 2018. Blockchain Traceability provides on-time and accurate data for tracking and tracing the products, thus, reducing the need for buffer stock, storage costs, operating costs, and exceed transportation costs. Moreover, all the data is transparent and trustworthy is helpful for the supply chain manager to make better decisions and reduce the costs of losing due to information missing. With the decentralization characteristic of Blockchain, businesses don’t need to invest in a centralized system that is more costly and less secure compared to a decentralized system.

 

Improve business operation with Blockchain

All the information updated on Blockchain is immutable and unchangeable, and can be retrieved easily will provide the supply chain controller with a trustful source for observing and improving supply chain operations. The recorded information is a valuable source for analyzing and optimizing the current business processed, making planning and forecasting more accurate, thus, eliminate the wastes and improve supply chain efficiency. Enterprises can make it better and better by integrating Blockchain Traceability with AI or other Business Intelligence technologies to fully utilize the advantages of Blockchain platform.

More transparency, fewer risks

Transparency is the most valuable benefit of Blockchain that enterprises desire to reduce risks. According to Capgemini’s research, Blockchain can help to reduce 50% risks in the supply chain. With Blockchain Traceability system, the supply chain manager can oversee all the operation on time and anticipate the risks may happen to prevent. Once the information is updated on Blockchain, it will be marked with a time-stamped proof; this will help to track back the information easily to identify the root cause of an issue and provide incontrovertible evidence about how the problems happened. Also, the traceability information is nature transparent, which encourages all stakeholders to do their best on maintaining operational efficiency and controlling risks along the supply chain.

Blockchain Traceability to satisfy customers

Another reason for investing in Blockchain traceability is about gaining the customer’s trust and loyalty to the brands. Nowadays, the safety of health and environment is the top concern that consumers usually think before making a purchase. As a research of CFG x Futerra Expert Survey, 55% consumers demand more information on social, health, environment and safety of the products and 70% consumers need the brands to show transparent information to them. Whereas, 94% surveyed consumers are likely to be loyal to the transparent brand, and 73% of them are willing to pay more for transparent products. With Blockchain Traceability, companies can satisfy their customers and earn trust and loyalty from them by supporting customers’ confidence in the products.

It’s worth investing in Blockchain Traceability

 

Blockchain Traceability brings many values to the businesses from saving costs, improving operations, managing and reducing risks to generating revenue by satisfying the customers and thereby, earning business competitiveness to lead the race of success for enterprises. Nevertheless, business leaders must consider carefully when investing in Blockchain traceability, because besides its transcendence, deploying it to business needs lots of resources. It requires companies to invest time and money in researching and developing the system, IT infrastructure, human resources, which are significant barriers for businesses to access Blockchain. Knowing these obstacles, there is a new start-up named WOWTRACE is developing a BaaS (Blockchain as a Service) for all kinds of companies to access Blockchain TraceabilityWOWTRACE will provide a full traceability solution on Blockchain platform as a service package that is flexible and suitable for all enterprises. Therefore, businesses can obtain the transcendent features of Blockchain Traceability without investing massively on money and time.

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