SUMMARY
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Problems
Issues in trade: compromised transparency and reliability
Trade, while being an important source of economic prosperity, is plagued by various issues that undermine trust between stakeholders and raise concerns about the transparency and safety of the supply chain. Consumers often lack awareness of the working conditions of employees involved in the production of the goods they purchase, as well as the raw materials used. Furthermore, price dumping by some producers can impact the quality of the products offered, further compromising the transparency and reliability of producers.
Product counterfeiting: negative consequences for consumer health and producer image
Product counterfeiting is an increasingly widespread problem that undermines consumer trust in brands and producers, especially in the high-tech and luxury industries. Counterfeiting can have negative consequences for consumer health and safety, and damage the image of legitimate producers.
Lack of trust in the supply chain hinders collaboration and innovation
Additionally, the lack of trust between parties involved in the supply chain hinders cooperation and innovation, making it difficult to develop long-term relationships and collaborate to improve product quality and supply chain sustainability.
Solutions
Blockchain Technology to Enhance Transparency and Security in the Supply Chain
Blockchain technology represents a promising solution for improving transparency, security, and trust in the supply chain. Thanks to the decentralized nature of the blockchain, it is possible to create a distributed ledger of transactions accessible to all supply chain participants. This way, each involved party can monitor the entire production process, from raw material selection to distribution of final products, ensuring greater transparency and accountability.
Verification of Product Authenticity through Blockchain Labels
Blockchain also allows for the verification of product authenticity through the use of RFID or QR code labels registered on the blockchain. This means that consumers can have confidence that the products they purchase are authentic and that the supply chain is secure.
Increased Trust in the Supply Chain through the Use of Blockchain
The use of blockchain can create greater trust among the parties involved in the supply chain. Through the real-time sharing of information and the creation of a more transparent and collaborative supply chain, it is possible to improve product traceability and security, increase trust among the involved parties, and ensure greater social responsibility.
Case Studies
IBM FOOD TRUST
IBM Food Trust utilizes blockchain technology to track the food supply chain from source to table. The aim is to ensure food safety and prevent any instances of food fraud. IBM Food Trust has created a platform that allows food suppliers to upload supply chain information onto the blockchain. This way, consumers can know exactly where their food comes from and verify its authenticity.
EVERLEDGER
Everledger uses blockchain technology to track diamonds, gemstones, and other precious stones along the supply chain. The goal is to prevent counterfeiting and ensure that the precious stones are authentic. Everledger has created a digital registry that allows the origin information of the precious stones to be recorded on the blockchain. This way, consumers can verify the authenticity of the precious stones they purchase, and businesses can avoid any legal issues related to selling counterfeit stones.
WALMART
Walmart is using blockchain technology to track food products along the supply chain. The goal is to improve transparency and security of the food supply chain. Walmart has created a blockchain platform that allows food suppliers to upload supply chain information onto the blockchain. This way, consumers can know exactly where their food comes from and verify its authenticity.Advantages
Blockchain technology is revolutionizing supply chain management
Blockchain technology is revolutionizing the supply chain management sector. According to a study by Deloitte, 53% of companies using blockchain technology do so for supply chain management, improving product traceability and security.
Blockchain can reduce supply chain management costs by up to 50%
A study by DHL and Accenture demonstrated that blockchain can reduce supply chain management costs by up to 50%, thanks to the increased efficiency and transparency it provides. These data show that more and more companies are adopting blockchain technology to improve supply chain management.
The global blockchain market in supply chain management will grow by 77.5% until 2025.
According to a report by ResearchAndMarkets, the global blockchain market in supply chain management will grow at a compounded annual rate of 77.5% until 2025, reaching a value of $3.3 billion. This demonstrates that blockchain technology is becoming increasingly important in the supply chain management sector.
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Since 2018 we have been guiding companies in responsible innovation, through the choice and best application of decentralized technologies. With offices in Venice and Milan, partners in Europe and the Middle East, we are the reference Blockchain Integrator for medium and large companies. We are part of a continuously growing Group that offers an integrated platform of services for innovation and research in the technological field.
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The adoption of blockchain technology in supply chain management can lead to numerous benefits, including:
- Greater transparency and traceability of products along the supply chain
- Reducing supply chain management costs by up to 50%
- Increased trust between parties involved in the supply chain
- Prevention of fraud and product counterfeiting
- Greater social responsibility on the part of producers and suppliers
- Improved collaboration and innovation between parties involved in the supply chain
- Possibility of offering consumers detailed and verifiable information on the origin and quality of the products
- Differentiation from the market through the adoption of innovative technology and the implementation of more transparent and sustainable practices.