Evolution of technology is happening in leaps and bounds and Blockchain as a technology is expanding its horizon across all industry. It has been creating history with healthcare domain helping them track myriads of health cases, acting as an aid to government bodies by creating a secured voting systems, in legal industry for storing and retrieving confidential documents.
With the rise in global trading, end-to-end traceability from source to end user consumption becomes a necessity for industries like Supply chain. Because in Supply chain, beyond the need of information, trust and transparency seem to barricade supply chain network due to discord between multi-parties and discrepancies between multiple disconnected locations.
Blockchain in supply chain enables better visibility across all transactions from multiple stakeholders creating secure and robust Supply chain network. With a continuous need to track assets in transit, and if required imply instant actions to third-party vendors to avoid common barriers of seamless supply chain transactions.
Some of the common barriers of supply chain industry are:
- Non-transparency in the provenance of consumer goods— from the source point to end user consumption
- Striving with inventory tracking
- Tampering with financial agreements, services, products, and software
- Unable to pace up with speed-to-market
- Unable to cope up with faster product delivery cycles
Unfortunately, mismanagement of processes is a common challenge in supply chain management risking everything from trust, transparency, speed and traceability. Blockchain has helped businesses modernize their traditional approach with the ability to cope up with millions of transactions using their distributed ledger which is a key enabler of trust, transparency and immutability.
Let’s bust these myths of supply chain complexities with the help of Coca-Cola’s use case.
Unchaining the Supply chain structure of Coca-Cola
The big shot beverage manufacturer Coca-Cola (North America)has successfully harnessed the power of Blockchain solution in one of its supply chain networks. It oversees more than 1,60,000 orders per day across all its franchises in North America. Slacking processes, no traceability and non-transparency between cross company functions and multi parties led this giant company to adopt Blockchain. Their widespread global networks had enormous set of data but no centralized ledger to give real-time insights of the product.
- Inability to trace and validate information across production units
- Dominated mostly by paper-based transactions at every supply chain touchpoint
- Low-tech utilization
- Non segregated supply chain networks, mixing batches and re-batching
- Lack of standardized approach to data and its maintenance
Blockchain Technology acts like a catalyst for profitability in supply chain business with its proven skills of authenticity, integrity and credibility. This distributed decentralized ledger fills all the potential gaps and aids business to trace microtransactions with speed and agility. Blockchain’s integration with Coca-Cola’s supply chain developed a consensus data dependent platform where all the franchise owners can view list of data and its attributes and act upon the data wisely.
Leveraging the power of Blockchain, Coca-Cola expeditated the overall supply chain process with its transparency and tamper-evident nature. No third party or intermediaries can share or access data without permission. Blockchain exponentially helped drive this international giant’s business to generate revenue of over $21 billion per year and improved order-reconciliation from weeks to days.
Blockchain – An Active lubricant for Supply chain industry
The market for blockchain technology is rapidly growing. IDC(International Data Corporation) predicts the spending in blockchain technology in specifically Asia/Pacific* to grow rapidly with a compound annual growth rate (CAGR) of 59.8% that will amount to a total of USD 3 billion over the period 2018-2023.
With this in mind, it is fair to say that Blockchain technology is paramount for supply chain businesses to meticulously track transactions and product details from initial source to final consumer touchpoint.
Blockchain technology ushers the potential to fix supply chain challenges and adds value by creating scalable and transparent business process. This technology has eliminated middlemen and midpoint failures by providing a real-time tracking on inventories and delays, improved security by making it hack-resistant.
Introduction of smart contracts in Supply chain business enables transparency between the two parties as a part of digital agreements when predetermined conditions are matched. This decentralized and immutable record ensures trust and dependency on data across all stakeholders of the network.
As a Technology First company, Blockchain Thought Leaders at Cygnet Infotech are adept and backed up with deep domain expertise promising end-to-end and tailor-made Blockchain-powered solutions. If you are a business wanting to create a long-term supply chain transformation road map, consult our Blockchain experts at Cygnet Infotech today at +1-609-245-0971 or email@example.com.