Traceability
is one of the most important foundations of logistics; but to achieve
the highest levels of transparency we would need a shared ledger that
is updated and validated in real time with each network participant.
This is exactly what Blockchain technology provides; It enables equal
visibility of activities and reveals where an asset is at any point
in time, who owns it and what condition it’s in.
For
those of you that are not familiar yet with Blockchain technology,
don't miss out the video below that explains in a few minutes how
this technology works and why it can revolutionize the Supply Chain
of the future.
Very
summarized, some of the benefits of Blockchain technology in Supply
Chain are:
- Reduce
or eliminate fraud and errors
- Improve
inventory management
- Minimize
courier costs
- Reduce
delays from paperwork
- Identify
issues faster
- Increase
consumer and partner trust
But
how is Blockchain revolutionizing Supply Chain?
Let´s
look at some of the biggest retailers in the world for example; Wall
Mart and Carrefour.
Carrefour
plans to use a Blockchain ledger to improve traceability of food in
order to address damaged food issues and the brand
damage impact
this could have, but also the shift in consumer preferences towards
added value on the transparency and sustainability of the food
products sold.
Walmart
has also made strides in incorporating Blockchain
technology in its business. Walmart partnered with IBM to create a
unique ledger among its network of suppliers as well. The retail
giant plans to address the food quality and the cases of fictitious
pickups to strengthen its logistics. IBM and Walmart ran tests on the
pilot program on tracking mango shipments which cut tracking time
from several days to two seconds.
