Blockchain in Supply Chain
Blockchain in Supply Chain
Blockchain in Supply Chain
another.
► Blockchains play a key role here and
Smart infrastructure Digital identity
can help eliminate duplicative and
error-prone transactions — helping
create a digital identity.
… whose entries are
Structural
… such as the origin and ... including manufacturers, ... meaning customers can ... so all parties have access
authenticity of goods … customers, suppliers ... trust third parties ... to data around a good …
rules
Chain of Things
Raw materials Supplier Manufacturer Distributor Retailer Consumer
Impacts of counterfeiting
► Loss of revenue, especially resale (10% of sales)
► Loss of market share
► Damage to brand
► Lack of trust from consumers
Why blockchain?
Allows brands to show path of a product from raw goods, to manufacturer, to distributor, to retailer, to
consumer and even then to the resale market
Inventory Management: Blockchain ensures that each piece of inventory moves smoothly across the value chain right from
the warehouse to the final destination; recording every transaction, and updating the movement of that item everywhere.
This enables the complete traceability of each product. Moreover, the capability of Blockchain to track transactions at the
ecosystem level helps in forecasting the demand and maintaining an optimal level of inventory at any level across the SCM.
Tracking Purchases: Blockchain gives a collective view of the total volume of purchase made by capturing data from all
the vendors while keeping the privacy of each entity. This enables companies to crack deals based on the total amount.
Enabling Transparency: Blockchain ensures visibility across the network. It is easier to know the source of the item along
with other details. Blockchain allows tracking frauds and nonconformity existing at any point across the value chain. Since
every partner has a digital ledger with them, it is possible to remove fraudsters from the network on a single click.
Real-time Data Inputs: Blockchain derives actual-time ledger of digital transactions, thus giving contextual business
insights helpful in making strategic decisions related to forecasting, planning, and scheduling.
Closing the Payment Gaps: Smart contracts powered by Blockchain are digital contracts that are synchronized across the
network and integrate banks, vendors, partners, and clients seamlessly, thereby avoiding delays in payments. Smart
contracts automatically generate digital invoices on getting a receipt and facilitate payment through banking intermediary.
Carve supply chain
Impact:
into the body of the What could blockchain do?
► Incomprehensible network of
blockchain product trace
► Supply chain mass contamination
Blockchain-protected supply
of products
chain framework
► Counterfeit parts in product inception
► The product ledger will hold the key properties of
components, quality, quantity and custody at a given
point in time. These attributes are stored in a secure
infrastructure and can be represented in consumer-
facing applications. It will be readable and linked from
pre-existing data sets.
A blockchain solution provides:
► Every relevant participant also will be an interested
party in performing a quality assessment, auditing the ► Brand value for products
network and getting verification from the relevant ► Decentralized, the technology-shared
performing party. Participants are producers, architecture
manufacturers, registrars, standards organizations,
► Establishment of mutual trustless
customers, certifiers and auditors.
trust
Connect industrial
Impact:
assets to a protected What could blockchain do?
► Data gathered in IoT network is futile
and secure digital ► Centralized cloud infrastructure
marketplace Blockchain can provide secure IoT ► Manual tracking of production,
digital marketplace distribution and consumption
► Blockchain provides secure, machine-to-machine
communication and distribution of smartly
produced data.
► Its decentralized server adds a layer of security to file
storage and transfer, determines roles and
permissions, provides trustless peer-to-peer
A blockchain solution provides:
messaging, and offers secure and distributed data
sharing and healthy equipment coordination. ► Safedistribution of smartly
► It can facilitate tracking production, distribution and
produced data
consumption, and automatically detect problems to ► Secure transfer of financially
initiate a cost-effective response rapidly. sensitive information
► Automatic installation of service
requests
Record trail and
Impact:
screen every What could blockchain do?
► Lack of confidence in retailer
product-trade ► Possibility for contamination
transaction Blockchain can provide information ► Potential for mislabelling of goods
around the origin of goods
► Blockchain provides an immutable, trusted and
shared record of transaction data.
► With its verifiable and decentralized nature, retailers
and manufacturers can track the origin and location of
a product at any point along the supply chain at any
given time.
A blockchain solution provides:
► Blockchain could eliminate the burden on one trusted
► Reassurance to customers,
centralized party when dealing with multiple parties in
multiple jurisdictions that are exchanging multiple particularly those with requirements,
physical goods and multiple documents and e.g., kosher and halal
settlements by decentralizing the authority. ► Helps avoid public relations disasters
► Helps maintain status as an ethical
retailer
Protected,
Impact:
blockchain-enabled What could blockchain do?
► Scores of documentation review
contract engagement ► File through to find vacant assets
Blockchain can reduce countless ► Trustcentralized in single part for
hours of marketplace research financial settlements
► Blockchain holds the secure coding of all
documentation related to a particular object —
patent, warranty, provenance, registration, insurance
and inspection certification — which helps in gaining
control of that object.
► With this infrastructure in place, an interested user
A blockchain solution provides:
can select a car lease option, sign the documents
and record the signed contract in the blockchain, ► Automatic monitoring of parties
thereby eliminating the need of third parties to sign ► Secure financial transaction
for approval. verification
► The vehicle itself, being one of the intelligent objects
► Reduced time for research
in the blockchain marketplace, has ability to
► Real-time discovery, usability and
diagnose, schedule and pay for its own maintenance
services. payment
Blockchain is a solution to solidify the fragmented supply chain and making it more accurate and visible. It
brings efficiency internally as well as externally among partners. The Blockchain-enabled supply chain
solutions are streamlining the supply chain and logistics industry by eliminating the value leakages and
increasing cost savings.
By adding Blockchain capabilities to your existing supply chain infrastructure, you can stay ahead of the
curve.