Supply chain advantage of blockchain: 10. Increases security
Blockchain tech prevents important regulations being bypassed through its rogour in closing loopholes. Examples include protection against data tampering, and the creation of ‘ghost employees’. Blockchain can create a transparent audit trail of actions that cannot be manipulated.
Supply chain advantage of blockchain: 9. Sustainability
By closing down illegal and unethical practices, Blockchain helps industry and governments act more sustainably. The tech brings unparalleled traceability which can help reduce environment transgressions such as illegally exported timber, or environmentally unsound palm oil trade..
Supply chain advantage of blockchain: 8. Objectivity
Blockchain tech makes decisions based on objective data. This eliminates human input that is based on ulterior motives like maximising profits. For example, the decision to fell or not to fell an individual tree will be based on verified data, rather than by distorting important – and more expensive – practices such as environmentally sound felling.
Supply chain advantage of blockchain: 7. Transparency
With blockchain, the sustainability and security of a product can be examined from end-to-end, providing reassurance – from raw material to finished product.
Supply chain advantage of blockchain: 6. Cross-border compliance.
Zoned architecture enables those in the value chain to react to, and comply with, country-specific regulation.
Supply chain advantage of blockchain: 5. Ease of adoption. 5. The pressure to move to net zero is immense, and blockchain is a way to speed up the process of becoming more sustainable. This includes the rate at which businesses can enact change, as it streamlines the route to wider sustainability.
Supply chain advantage of blockchain: 4. Consumer confidence
Blockchain enables companies to identify the provenance of raw materials, and whether the supply of a product has violated ESG guidelines – so protecting businesses from reputational damage.
Supply chain advantage of blockchain: Political compliance. 3. The European Commission (EC) is just one of many regional political bodies looking to design and develop territory-wide blockchain capabilities, compliance with which will determine how business is conducted, and by whom.
Supply chain advantage of blockchain: 2. Increased efficiency.
Supply chains can be fragmented, leading to inefficiencies. Blockchain allows data to be used in such a way that visibility is greater between the various tiers of the supply chain.
Supply chain advantage of blockchain: 1. Financial security
Payments made via blockchain can can be monitored by both parties, meaning suppliers are no longer at a disadvantage in the buying process while they wait for processing. Blockchain speeds up the process, giving the parties more control and making the supply chain more robust.