Content adapted from this bitconnect.co article : Source

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Certain supply chain sectors could benefit from blockchain

The flexibility of blockchain technology allows it to be incorporated into a range of industries. This is because it offers users immutable records that will always be there, which improves auditing processes and decreases fraud and falsification practices. In addition, it can provide secure and cost-effective smart contracts.

Supply chain is one of those industries where blockchain technology could make a vast difference in. Because it can aid in traceability and compliance issues, both of which are notorious in the supply chain world, it can actually improve overall performance to foster positive stakeholder relations.

However, blockchain may not be best for every type of supply chain company. Lory Kehoe, EMEA blockchain lead at Deloitte, discusses more about the possible beneficial relationship between blockchain and supply chain.

“Full understanding of what the technology can and can’t do is vital, not only for the supply chain sector but for all industries and sectors,” explained Kehoe.

“Companies still need to be prudent when using the technology, like any other. Blockchain technology should be evaluated on its unique and value-creating characteristics, and ensure it is driving real business benefits and value before rolling out front-to-back solutions,” he continued.

“Blockchain is not always the answer. We are seeing it may play a role, but not the entire technical solution,” he added.

Even though blockchain technology continues to grow exponentially, some businesses are still unaware of its full possibilities.

“2015 was the year of hype, 2016 was the year of the prototype. We are starting to see some clients, like DNV GL, use blockchain in a production environment in 2017, but expect to see a lot more companies using blockchain in live environments in 2018,” Kehoe explained.

“We feel that it will take a couple more years for blockchain technology to be fully integrated into various supply chains. However, in the short term, we see the technology being used in certain parts of the overall supply chain process, such as part-tracking, finance processes and procurement processes.” He added.

That sounds great for the suppliers, but what about consumers? Will they be able to benefit from all of the behind-the-scenes blockchain action? Kehoe thinks that they will, as they would be able to view detailed purchase information just by scanning a QR code.

“Transparency and provenance is fast becoming an increasingly important part of modern society, and blockchain technology will help show the authenticity of a range of goods, from food to art to handbags,” Kehoe concluded.

Even though it may not be the best idea to integrate blockchain into the supply chain industry as a whole, it may be the ideal answer for many supply chain companies, resulting in a more efficient and transparent business approach for both consumers and suppliers.