Blockchain and a Re-Imagined Global Supply Chain
The use of blockchain, the distributed ledger technology, is rapidly gaining ground across industries. Despite China’s sanction on ICO (Initial Coin Offering) and halted cryptocurrencies trading, the country has become a hub of activities for blockchain technology development and applications. Blockchain is in the blueprint of China’s 13th Five-Year Plan and a potential technology enabler in “Made in China 2025” and the Belt & Road Initiatives.
The application of blockchain is being taken up across many sectors – manufacturing, fintech, health, automobility, just to name a few. One area that Augmentum has found the most applications is in supply chains.
The trade tension between China and the United States is reshaping the intertwined global supply chain. With the myriad web of relationships amongst its participants across national borders, technologies such as blockchain will be critical in ensuring the efficiency and integrity of the increasingly sophisticated supply chains.
China’s supply chains are enormous and complex. Its logistics market is the largest in the world but it is ranked only no. 26 in the World Bank’s logistic performance index. Blockchain has the potential to be a key enabling technology for many applications in supply chain, logistics and quality management. Blockchain brings trust, transparency, traceability and accountability to the data it stores. The potential use cases and improvement opportunities are numerous.
Major industry participants such as Maersk and Walmart are rolling out blockchain enabled real world use cases with the goals of increasing efficiency, transparency and traceability in logistics and provenance governance. Participants in manufacturing and supply chain should embrace the promises of blockchain and its many potential benefits by either respond, lead, or do both. Alternately, a wait-and-see attitude can end up being quite costly.
For more information, Blockchain-and-A-Re-imagined-Global-Supply-Chain.pdf