Erol User, notable business personality and co-founder of prominent blockchain platform BlockchainArmy, made some important remarks here on Tuesday on how blockchain holds the key to transform the supply chain and logistics industry.
Presently, the existing supply chains have been grappling with some major issues, such as inadequate transparency and complexity. It has become a mammoth task to manage the present supply chains and the links for creating and distributing the goods.
According to the product, the supply chain may extend beyond various stages that may include several individuals, organizations, the number of invoices, payments, and dozens of global locations, among others.
On being asked how the supply chain is broken, Erol User said the present supply chain had been broken in various ways. In earlier times, supply chains were quite easy as trade or business was local. But, now, the chains have turned complicated. Supply chains underwent major transformations over a period of time. When computers were introduced way back in 1980, it led to major changes in supply chain management. Soon after the globalization of manufacturing, a huge chunk of it carried out in China that caused some complexities in the chains. And, customers are increasingly finding it a herculean task to find out the product’s actual value due to inadequate transparency in the existing system. Similarly, it is also growingly becoming tough to inspect supply chains whenever doubt lingers in the mind of customers about unlawful or invalid practices. The role of customers may take a backseat as vendors and suppliers decide who needs what, when, and how.
Headquartered in Istanbul and Rotterdam City, blockchain consulting company BlockchainArmy has been offering exceptional blockchain consulting services. It has got a distributed team of professionals in more than 20 countries.
Earlier in December 2019, Erol User highlighted the diverse applications of the blockchain technology at the US Geneva meet organized by ONUART Foundation. He said Blockchain had transformed the Finance industry from its root.
Banks and various other financial institutions have already started implementing blockchain technology in their vital operations amid its myriad benefits, added Erol.
Meanwhile, Erol went on to point out how blockchain may prove crucial in assisting the supply chain. Erol mentioned that the major use of blockchain occurred in cryptocurrency, Bitcoin. Bitcoin has diverse applications and it can be conveniently used for making any payment, tracking, exchange, agreement, or contracts. As it is quite transparent, it has emerged highly safe. Since it is not regulated by any central authority, it has become highly effective and accessible. Blockchain can significantly boost the effectiveness and transparency of supply chains. It will go a long way in constructively impacting everything right from the warehouse stage to payment. Chain of command plays a vital role in various things and blockchain is equipped with it in abundance.
Erol emphasized that blockchain will offer integrity and consistency to the supply chain. One can not wipe out the records on a blockchain that will help in boosting transparency in the supply chain.
Blockchain has been used at a large scale in the supply chain as a result of its various advantages. Blockchains make it possible for the transfer of funds all across the world without having to use any bank. Blockchain has emerged highly appropriate for the supply chain amid its rising globalization.
Leading Australian vehicle manufacturer Tomcar has been paying suppliers via Bitcoin. Meanwhile, it is important for the food industry to maintain records for tracking every product to its source. Walmart is also using blockchain to maintain a track of its pork to its source from China. Blockchain proves useful in a recording where every meat’s piece came from, processed, warehoused, and sell-by-date. Other leading brands that may include Tyson, Nestle, Unilever, and Dole have also begun to use blockchain for the same purposes.
It is expected that a large number of companies will begin to use blockchain when they realize the significance and demand for blockchain-powered solutions. Blockchain has the potential to transform the supply chain and logistics industry in the longer run.