Blockchain Technology is all set to transform the Supply Chain Industry
There are two terms discussed a lot in proximity to the supply chain recently: coronavirus and blockchain. One is placing a lot of pressure on the supply chain, while the other is set to transform it.
First, it is becoming apparent that blockchain is converting into something of a “safe deposit box” for retail data, allowing a digital method for storing and sharing data between various stakeholders.
For instance, if a merchandise manager wants to establish inventory levels for a national chain, multiple participants can observe the data – including the supplier, if they are on the permission record for that block. Large-scale networks, in particular, can leverage this characteristic, which leads into two other retail advantages: Blockchain data modernizes itself, and since its permissions are restricted, they can’t be deceived by a third party.
That “single version of the truth” is the blockchain variant of trust.
“Blockchain looks to create trust within a network in a different way,” according to Lexology, a U.K.-based tech site. “Rather than there just being a single master copy of the database, each participant in the network holds their copy of the same database. That is why blockchain is referred to as being distributed or decentralized. As everyone in the blockchain network has an identical copy of the database, each participant knows with confidence that ‘what I see is what you see.'”
The Chain Integration Project (CHIP), a blockchain proof-of-concept initiative backed by leading manufacturers and retailers conducted by Auburn University, pointed out that blockchain and RFID technologies, when connected, expand value for retailers. Utilizing serialized data exchange, blockchain, and RFID can decrease or eliminate the requirement for human oversight in inventory management and other essential aspects of supply chain monitoring.
Industrial spending on blockchain is deemed to surpass $11.7 billion by 2022, and it’s no surprise. From manufacturing to retail to quality assurance, blockchain is being utilized to maximize the value of data and to assign data processing and transmission.
Notwithstanding the burgeoning bandwagon, the hype circling the blockchain rush is based on solid science. The structure of blockchain technologies has additional layers of security that did not exist in earlier digital technologies. Scientists are even considering the application of blockchain as a standardized verification system for scientific discovery.
Blockchain technology empowers retailers and their suppliers to cut through the sonance of external data and automate access to insights, offering real-time supply chain and external data available and easy to verify. Simplification and security are top preferences for small businesses, particularly when it comes to data warehousing and managing transactions.
A recent roundtable and public hearing on the blockchain, which was conducted at the White House, involved industry figures and entrepreneurs, who testified to the benefits of adopting the technology to improve small business efficiency. They also recognized the need for direction on the development of appropriate government regulations.
Small businesses have also been agitating for CRM products and payment solutions that use blockchain technology, not just because of the improved speed, though also because blockchain-powered CRM processes have new, top-to-bottom data that allows a wealth of insights in a frictionless format.
As blockchain technologies surpass in security and data transfer, they are an excellent fit for global companies like Walmart, which have complicated retail and manufacturing relationships as well as millions of transactions and authentication activities to manage.
Lately, IBM, Walmart, and other leading brands associated with an ongoing initiative to make the public blockchain a more reliable space for enterprise-grade ERP and CRM activities.
The project, named Baseline Protocol, will utilize a distributed blockchain-based system created to be context-aware and tailored to the unique scalability and security requirements of each brand.
While still in its infancy, the project may agitate blockchain’s lingering “wild west” reputation, enabling major enterprises – which are hesitant to employ non-proprietary technologies – to adopt the technology as a consistent, data-driven solution eventually.