According to Cointelegraph reported on December 4, the implementation of blockchain technology in the supply chain can save 450 billion US dollars in logistics-related costs for Western European companies.
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A recent study by Cointelegraph Consulting and Swiss enterprise blockchain company Insolar shows that blockchain technology can reduce companies' supply chain related costs by 0.4% to 0.8%.
Although this number may seem small, the sheer size of the logistics industry means that this ratio can translate into hundreds of billions of dollars in cost reductions. In addition, the report believes that blockchain technology can create benefits for the business itself:
"94% of supply chain leaders said that digital transformation will fundamentally change supply chain management. In the process of transitioning to Industry 4.0, the total return on investment of industrial enterprises is expected to grow by 25% by 2035.
In this joint research report, Cointelegraph Consulting and Insolar surveyed the problems encountered by companies in managing their supply chains and pointed out that 60% of enterprises' supply chain supplier management fees are too high. 70% of companies have a "visibility" gap between their initial supplier and internal customer systems, which makes tracking supply chain resources difficult or impossible.
Existing technologies cannot solve supply chain problems
The study states that current technical solutions such as enterprise resource planning and traditional databases cannot solve current supply chain problems. One reason is that nearly 80% of enterprise data is isolated and lacks completeness. The study wrote:
"The database approach fails to provide inherent data sharing related to the supply chain, which is essential for mutually distrusting counterparties to obtain information about a product profile, price, delivery conditions, etc. Some parties' information is not always timely Updated, and some are hidden. "
Peter Fedchenkov, the founder of Insolar, pointed out that the adoption of blockchain does not necessarily obsolete current IT systems, and that blockchain can be applied with existing infrastructure. He told Cointelegraph:
"When people talk about blockchain, people always have misunderstandings and think that this is a new paradigm that can completely change the business model. We think this is wrong. By using our blockchain platform, we provide a supplement Organizations' existing IT infrastructure approach. "
Cointelegraph Consulting, launched on December 3, aims to help SMEs adopt blockchain by matching them with enterprise blockchain solutions for SME operations.
Blockchain: The Gospel of Supply Chain
Blockchain technology has been widely used in the supply chain of various commodities such as diamonds, rare metals, fashion supplies and food. According to Walmart, a large US retail company, distributed ledger technologies such as blockchain make it easier for companies to recall problematic drugs or food when needed.
Last week, KPMG, one of the Big Four accounting firms, launched a blockchain-based traceability and tracking platform in Australia, China and Japan.
Recently, retail giants Carrefour and Swiss food and beverage group Nestle joined IBM's Food Trust platform to use blockchain technology to track the supply chain of infant formula.
In August this year, Cointelegraph reported that Maharashtra, India ’s second largest state, is preparing to develop a regulatory sandbox to test blockchain in supply chain, agricultural marketing, vehicle registration and document management. Adoption in this application.