From demand to supply; how blockchain can be decisive in the development of the supply chain
As blockchain is expected to provide applications across various sectors, it seems that the supply chain industry will also undergo a number of developments. Market behavior suggests that certain supply chain entities have already found blockchain-based supply chain benefits, and are expected to incorporate them into their systems.
According to MarketsandMarkets, a market research company, the global blockchain supply chain market size is expected to grow from $253 million in 2020 to $3,272 million in 2026, at a compound annual growth rate (CAGR) of 53.2%. “Digital systems are trying to inculcate blockchain-oriented applications. Due to blockchain’s decentralized nature, it helps in the integration of multiple supply chains without the need for an intermediary. Blockchain-infused supply chains have the potential to increase efficiency, increase profits through increased savings, help to streamlining operations, among others,” Nikhil Goyal, co-founder, Beyond Imagination Technologies, a blockchain-based solutions platform, told FE Blockchain.
Insights from reports stated that blockchain-oriented supply chain management can remove the dependence on middlemen in international trade, increase competition, reduce transaction costs, offer solutions for trade processes, among others. According to TechTarget, a marketing company, blockchain in the supply chain can help ensure transparency in transactions, offer quality assurance and provide cost savings. “Through blockchain-based supply chain, investors and transfer can get a complete picture of the products from origin to delivery. The use of blockchain-induced supply chain management will help reduce blockages in the trading ecosystem, and also create new job opportunities,” said Prashant Kumar, founder of weTrade, a cryptocurrency platform.
In addition, it is believed that the statistics surrounding the use of blockchain have been on the rise, and authorities aim to push for blockchain-based supply chains. A survey by Deloitte in 2020 showed that 55% of senior executives made blockchain a priority. According to International Business Machines Corporation (IBM), a technology company, Renault Group, an automobile manufacturer, has moved its supply chain documentation process to blockchain. Similarly, The Home Depot, a home improvement company, has induced blockchain-oriented supply chain solutions to improve buyer-supplier relationships. “For the future of the supply chain, blockchain is expected to be an important step. Blockchain-oriented opportunities are expanding to include everything from financial services to food and product shipping. Furthermore, blockchain-oriented supply chain has found use in sectors such as banking, agriculture and maintaining property records for countries that India, Kenya and East Africa,” Poorvi Sachar, chief operating officer, Tezos India, a blockchain adoption unit, mentioned.
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