Benefits of Blockchain for Supply Chain
Enhanced Efficiency
-Supply chains contain complex networks of suppliers, manufacturers, distributors, retailers, auditors, and consumers.
-A blockchain’s shared IT infrastructure would streamline workflows for all parties, no matter the size of the business network.
-A shared infrastructure would provide auditors with greater visibility into participants’ activities along the value chain.
Cost-Saving
Blockchain can drive cost-saving efficiencies and enhance the consumer experience through traceability, transparency, and tradability.
Traceability
-Improves operational efficiency by mapping and visualizing enterprise supply chains.
-A growing number of consumers demand sourcing information about the products they buy.
-Blockchain helps organizations understand their supply chain and engage consumers with real, verifiable, and immutable data.
Transparency
-Builds trust by capturing key data points, such as certifications and claims, and then provides open access to this data publicly.
-Once registered on the Ethereum blockchain, it’s authenticity can be verified by third-party attestors.
-The information can be updated and validated in real-time.
Tradability
-Using blockchain, one may “tokenize” an asset by splitting an object into shares that digitally represent ownership.
-This fractional ownership allows tokens to represent the value of a shareholder’s stake of a given object.
-These tokens are tradeable, and users can transfer ownership without the physical asset changing hands.
Reducing Counterfeits
-Counterfeit consumer goods account for nearly 188 billion dollars of lost revenue regarding prescription drugs alone.
-Blockchain enables an individual to verify that a product was sourced accurately and ethically.
-Documentation counterfeiting and fraud are also common among diplomas, certifications, and official identification.
-Blockchain records can transparently verify certifications and official legal documents effectively.
-It can also coordinate record-keeping immutably, which prevents counterfeiting or fraud.
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