Supply Chain Revolution: How Blockchain is Changing the Game

Blockchain Revolutionizing the Supply Chain Industry

Blockchain technology, mainly known for its applications in cryptocurrencies, is having an increasingly significant impact on the supply chain industry. It eliminates the so-called “bullwhip effect,” which is a common problem in supply chains today.

Value Locked in the Capital of the Supply Chain

According to estimates, the value locked in the capital operating in current supply chains exceeds 3.5 trillion euros (4.1 trillion dollars). The bullwhip effect is a phenomenon associated with spreading forecasts, leading to inefficiencies in the supply chain and an increase in inventory turnover in response to changes in customer demand.

Blockchain Solving Supply Chain Industry Issues

Blockchain technology can change the way business is conducted in the supply chain industry by addressing three main issues. Harry Goodnight from Sweetbridge, with over 30 years of experience in the supply chain, explains how blockchain can revolutionize data processing in the industry.

Benefits of Implementing Blockchain Technology

Blockchain can provide a single, unified source of data, eliminating currently existing isolated data silos. Furthermore, this technology can contribute to the unification of logistics companies under one register, removing previous disruptions.

Through blockchain, financial liquidity can be increased by capitalizing on illiquid assets, which in turn can impact the increase of working capital for companies. Importantly, each stage in the supply chain can benefit from the implementation of blockchain technology, eliminating the need for a single dominant company and enabling better collaboration between producers, suppliers, and carriers.

Blockchain is not only a technological innovation but also an opportunity for a revolution in the supply chain industry, which can bring many benefits and enhance efficiency and collaboration among entities involved in the delivery process.