Nearly two years ago, CLN took a fundamental look into blockchain and how it should and would affect supply chains in the near future – 6 years from the time of original publication.
Today we look at the early events as a window into the previously deemed “future” regarding supply chain transparency, seeing as how the year 2020 has essentially sped up the need for adaptive tech adoption.
Is it time to begin blockchain integration? Let’s take a closer look.
While operational blockchain implementation is imminent, it will not be complete without other notable key factors involved in a logistical management partnership. While speculative, at best, this could take shape as a no-touch proprietary model running nodes on a blockchain network. The best of both worlds? Perhaps.
Let’s dive in.
Increasing Efficiency While Decreasing Disruptions
The most common issues weighing down supply chain and logistics optimization is an inherent lack of visibility, communication, governing regulations, and tracking capabilities.
Most manufactures and distributors have complex supply chains warranting both macro and micro level metrics available – but not necessarily the in-house versions.
This is where co-managed approach to global logistics comes in to play.
These massive supply chains cross a multitude of components through a list of suppliers, inbound and outbound shipments, storage, customers, and locations. One mishap and the entire operation can be de-railed.
Can the blockchain help with this?
The blockchain theory removes the solution involving centralized trust and data. Breaches are inevitable, thus creating more insolvent issues, leaving the decentralized solution as the practical front-runner.
A blockchain platform aims to leave the control in the hands and minds of the individual as they see best fit for their company on an ever-evolving basis.
“Companies would utilize a Kanban system to place orders with one another and manage production. Kanban cards would be assigned to the produced items, and the blockchain would record digital tokens representing the Kanban cards. This would enhance the visibility of inventory flows across companies and make lead times more predictable.” (Business Harvard Review)
Benefits of utilizing blockchain is the synchronization of:
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Data Sets
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Full Tracking Capabilities
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Payment Automation
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Increased Traceability Capabilities
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Increased Trust
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Decentralized Platform
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Limited Data Required
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Decreased Scam and Counterfeit Capabilities
An asset voiced in using blockchain as a means to optimize complex supply chains is the speed and accuracy at which transactional business can be dealt.
Moving forward, innovative sectors will adapt as pure relevancy.
What is your company currently doing to remain a front runner in your industry?
Adaptable Technologies Married to Known Participants
What do we mean here?
Simple. Digital applications integrated with blockchain technology accessible only to business partners that are known to you and/or your company (e.g. “known participants”).
Supply chains require private parties to be involved in order for decentralization to essentially work. When you take into account the increased level of trust, plus the heighted level of capable oversight, plus the ability to “outsource” your entire international business to a trusted third party utilizing their reach and proprietary networks, you get…
Effective supply chains that scale your business on a revolving and continued basis.
Conclusion
Again, the speculative prediction of a supply chain ran on the blockchain in conjunction with innovative SaaS applications are just that – speculative.
There will be copious amounts of adaptations, restructures, updates, and errors made within the next couple years in regards to fully optimizing supply chains during the transition to America 2.0.
The real question is are you ready for the change?
Most companies transporting internationally face reoccurring logistics problems. At CLN Worldwide, our management service coordinates the entire supply chain and solves transportation and regulatory challenges. We allow you to focus on your business.
We are a passionate group of professionals with expertise in areas ranging from transportation, Customs, compliance, to distribution, legal, and finance.
Logistics can be a labyrinth. One question leads to three others. Our team will help you through the maze.
As a cross-functional team of logistics experts, we help clients navigate areas of transportation. Our focus is not on an individual product group or service offering but rather a comprehensive approach to effectively managing and optimizing the supply chain.
However, CLN offers a complete range of end-to-end logistics services.
Our services are customized and tailored to meet the specific requirements of our clients.
Our managed approach to global logistics provides the structure and support to drive industry leading performance and results from each of our service areas. (CLN Terms and Conditions)
An original CLN Worldwide Publication
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