Supply Chain Management: The Blockchain Series
We’ve discussed Film, Television and Music. Now it’s time to take a look at some of the more robust industries subject to disruption thanks to the concept of blockchain technology.
One industry that has been consistently mentioned within conversations surrounding blockchain’s revolutionary capabilities is supply chain & logistics management. In the pandemic-related world we have occupied over the last 2 years, it has been quite common knowledge of the massive toll companies’ supply chains have been facing.
Delayed, unfulfilled, and even at times lost shipments have plagued the entire industry, placing a severe bottleneck on not only private supply chains, but government related ones as well.
Now one may question, how can some transparent tech like blockchain combat the pandemic-induced wound global supply chains are currently faced with?
Well, it has a lot to do with its ability to transparently identify and isolate components of a process, this process obviously being fulfillment.
With appropriate systems in place (such as one of crypto’s recent favorites, VeChain), buyers are essentially able to place conditional orders that must consistently be met through every stage.
Let’s say you run a retail store, and your supply chain consists of suppliers in different countries. For argument’s sake, let’s say it's the height of the pandemic and your number one priority is to import covid-free, uncontaminated goods. With conditional order contracts facilitated by blockchain technology, every stage and step of the fulfillment process - from the suppliers front door, through all the hands of intermediaries - will be backed up on blockchain. If the goods were to have traces of the virus, you’d be able to transparently filter through all intermediaries and highlight the weak link.
The same goes for spoiled food.
Let’s say you’re running a grocery store, and have non-local dairy suppliers. The combination of smart contracts and blockchain mean you’re able to program conditional delivery, whereby for instance: ‘Price is agreed upon X conditions being met, X conditions being consistent temperature of 8 degrees celsius inside the refrigerated container for the entire duration of fulfillment.’ If the electronic sensors report a dip in temperature, it is instantly recorded and backed up on the blockchain. These practices enable not only the buyer to challenge the price paid for the value of the order, but the logistics provider to highlight and identify where things went wrong.
The concept of blockchain for the logistics and supply chain industry could’ve helped tremendously during the pandemic.
It would’ve been able to highlight which ports/ships were providing the highest probability of the virus being spread. It would’ve enabled the industry to transparently look into the areas/regions that needed temporary suspension, whilst simultaneously identifying areas to optimize.
Curious to know how blockchain could/can disrupt your industry?