For business leaders, making an investment decision is never easy. The decision-makers must carefully consider all alternative possibilities, assess conceivable scenarios, evaluate investment returns, and allocate resources for investment. When investing in a new technology never encountered before, the processes become significantly more challenging and crucial. The same applies to the blockchain, a promising technology that can alter the world the same way the Internet did.
Businesses are wary of investing in emerging technology, particularly for traceability, which may enable them to gain significant competitive advantages. Business leaders have little understanding of Blockchain solutions development and how they can use it in their industry. Therefore, this blog assists them in determining whether it is worthwhile for a company to invest in Blockchain Traceability.
Experts believe that Blockchain Traceability will save businesses significant money while also providing a variety of benefits. Blockchain Traceability delivers real-time and precise data for tracking and tracing items, processes, information, and more, minimizing the need for buffer stock, storage expenditures, and transportation costs. Furthermore, data is open and reliable, allowing supply chain managers to make better decisions and avoid misinformation.
Businesses do not need to invest in a centralized system that is more expensive and less secure than a decentralized system because of the decentralization feature of blockchain technology.
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Manufacturers and suppliers, transportation companies, warehouse facilities, intermediaries such as dealers and OEMs, and end customers or consumers are all part of the supply chain. Blockchain technology creates a shared network that allows all of these parties to communicate with one another. It also makes it possible to track events on the blockchain ledger. In terms of the supply chain, the technology solution creates two types of participants:
Active- Business participants who submit and validate transactions, (like warehouse managers, transporters, OEMs, suppliers, and more )
Passive - External parties with read-only access like public sector entities, banks, and insurers, as well as clients,
Essentially, a blockchain technology-based track and trace system can aid in the resolution of traceability issues. It can enable various participants in a supply chain network to update information onto a single, distributed shared ledger. It can ensure comprehensive end-to-end data visibility and provides a single verifiable source of truth. Subsequently, it can provide the following benefits.
Also, Read | Analyzing the Food Traceability System Developed by Walmart with Hyperledger Fabric
The supply chain controller will have a reliable source for monitoring and enhancing supply chain operations as information changed on the blockchain is irreversible and unchangeable and can be easily retrieved. The collected data is a resource for assessing and refining current company processes, allowing for more accurate planning and forecasting, reducing waste, and increasing supply chain efficiency. Enterprises can also combine Blockchain Traceability with AI or other Business Intelligence technologies to fully use the benefits.
Also, Read | Supply Chain Traceability and Sustainability with Blockchain
Blockchain, according to Capgemini's analysis, may assist in decreasing supply chain risks by 50%. With the Blockchain Traceability solution, the supply chain management can keep track of all operations in real time and predict any hazards. When information gets changed on the blockchain, it will have a time-stamped proof. It will make it easier to trace back data and discover the root cause of an issue. It will also give indisputable evidence of how the problems occurred. Furthermore, because traceability information is inherently accessible, all stakeholders are encouraged to do their best to maintain operational efficiency and manage risks along the supply chain.
Also, Read | Blockchain-based Food Supply Chain Traceability System
Another incentive to engage in Blockchain traceability is to win the confidence and loyalty of customers to companies. Nowadays, customers' primary worry before making a purchase is the safety of their health and the environment. According to studies, 55% of customers want knowledge on how products affect their social lives, health, the environment, and other factors. 70% of customers want brands to provide them with transparent information. In contrast, 94 percent of surveyed consumers agreed they are loyal to a brand that promotes transparency, and 73 percent would pay a higher price for transparent items.
Companies can delight their consumers and win their trust and loyalty by boosting customers' faith in their products via Blockchain Traceability.
Consumers want to know where their food comes from and what techniques came into use to make it. Customers can find their food's specific location of origin thanks to blockchain-based traceability. Furthermore, it provides access to information on the food's manufacturers and its freshness. Workers at each level of the food supply chain are responsible for updating the database with product information. As a result, food traceability in the supply chain might have significant benefits, such as reducing food fraud and fraudulent labeling.
Also, Read | Thwarting Automotive Counterfeits with Blockchain Traceability
Manufacturing firms may use blockchain technology to facilitate data sharing while improving accuracy and security across complex supply networks. Blockchain traceability may provide access to a permanent digital record of materials, components, parts, and other goods. As a result, it may assure rapid development in the production process with end-to-end visibility.
Every year, the weight of counterfeit goods costs the fashion sector a significant amount of money in terms of yearly sales. Fashion brands, on the other hand, are losing their market credibility. As a result, blockchain aids in monitoring the supply chain of goods and builds a stronger foundation of confidence for customers. Customers can see where their clothing comes from thanks to blockchain technology.
Interested in exploring blockchain solutions for traceability in your business? Connect with our blockchain development experts for more information.