The potential of blockchain technology in the supply chain management Industry

Bizwoxmag

15 Sept 202203:08

Summary

TLDRThis video explores the transformative potential of blockchain in supply chain management, emphasizing its ability to enhance transparency, traceability, and efficiency. By offering an immutable ledger, blockchain can streamline product delivery, improve partner coordination, and facilitate financing. It also aids in preventing fraud and ensuring timely and accurate product distribution. The script highlights real-world applications, such as tracking ethical tuna sourcing, and underscores the technology's potential to revolutionize the global trade finance industry, valued at 18 trillion dollars.

Takeaways

🔒 Blockchain is a decentralized network that records digital transactions in a secure, immutable ledger.
🌐 The absence of a central authority in blockchain technology prevents any single party from controlling or tampering with the network.
📈 Real-time tracking of data on the blockchain can improve efficiency and reduce the need for reconciliation and error handling in supply chain management.
🚚 Blockchain can enhance supply chain operations by enabling faster, more cost-effective delivery of products.
🔍 Improved traceability of products and materials through blockchain can help prevent fraud and ensure timely and correct delivery conditions.
🤝 Blockchain facilitates better partner coordination within the supply chain, which can lead to more streamlined operations.
💼 The technology can provide access to financing by offering transparency and traceability, which are attractive to financial institutions.
🌱 Manufacturers can use blockchain to verify the origins of raw materials, adding a layer of assurance to the supply chain.
💼 Blockchain solutions are being tested by companies for various purposes, indicating a growing interest and development in the field.
🎣 Case studies, such as Provenance's pilot tracking ethical tuna sourcing, demonstrate the practical application of blockchain in supply chain transparency.
💼 The use of blockchain in supply chain management can lead to increased transparency, reduced administrative costs, and improved compliance.

Q & A

What is the primary function of blockchain technology as described in the video?
-The primary function of blockchain technology is to track and record a collection of digital transactions in a decentralized network as a distributed ledger, ensuring that any data recorded is immutable and providing a thorough audit trail.
Why is the immutability of data on a blockchain important?
-The immutability of data on a blockchain is important because it ensures the integrity and security of the information, preventing any unauthorized changes and making it reliable for auditing and verification purposes.
How does blockchain technology improve supply chain management?
-Blockchain technology improves supply chain management by enabling faster and more cost-effective delivery of products, enhancing product traceability, improving partner coordination, and facilitating access to financing.
What are the potential benefits of using blockchain in the supply chain industry?
-The potential benefits include increased transparency and traceability, reduced administrative expenses, prevention of fraud, ensuring timely and correct delivery of products, and strengthening an organization's position as a pioneer in ethical manufacturing.
How can manufacturers use blockchain to track the origins of raw materials and finished products?
-Manufacturers can use blockchain to precisely record and track the origin, price, certification, location, date, and quality of raw materials and finished products, which can be used to prevent fraud and ensure product delivery standards.
What is the role of blockchain in reducing losses from the gray market and counterfeit products?
-Blockchain can increase the traceability of materials in the supply chain, making it easier to verify the authenticity of products and thus reducing losses from gray market and counterfeit goods.
Can you provide an example of a company testing blockchain solutions in the supply chain?
-Supply chain transparency startup Provenance is an example; they recently completed a six-month pilot using blockchain to track ethical tuna sourcing in Indonesia.
What is the significance of blockchain-based B2B trade and supply chain financing products?
-These products are significant because they increase supply chain transparency, lower risk, boost efficiency, and improve overall supply chain management, which is crucial for competing in the global trade finance industry.
How does the availability of data within blockchain improve visibility and compliance in outsourced contract manufacturing?
-The availability of data within blockchain allows all parties to access and verify information in real-time, improving visibility into the manufacturing process and ensuring compliance with standards and regulations.
What is the potential commercial value of blockchain innovations in the supply chain industry?
-Blockchain innovations in the supply chain industry have the potential to create enormous commercial value by offering solutions that enhance efficiency, reduce costs, and improve trust and transparency in global trade.
Why is it important for viewers to subscribe and hit the notification bell for the channel?
-Subscribing and hitting the notification bell ensures that viewers are kept up-to-date with new educational and entertaining content posted by the channel, including further insights into blockchain technology and its applications.

Outlines

00:00

🚀 Introduction to Blockchain in Supply Chain Management

This video introduces the concept of blockchain technology and its potential impact on the supply chain management industry. It emphasizes that the content is for educational and entertainment purposes only, not financial advice. The video will explore how blockchain, as a decentralized and immutable ledger, can enhance supply chain operations by enabling real-time tracking, improving transparency, and reducing administrative costs. It also mentions that blockchain can assist in recording essential supply chain data such as price, certification, location, date, and quality, which can help in managing the supply chain more efficiently.

🔍 Enhancing Supply Chain Transparency and Traceability

This paragraph delves into the benefits of blockchain in supply chain management, focusing on increased transparency and traceability. It discusses how manufacturers can use blockchain to track the origins of raw materials and finished products, which can help prevent fraud and ensure timely and correct delivery of products. The paragraph also highlights the potential for blockchain to lower administrative expenses, improve partner coordination, and facilitate access to financing. It provides an example of a supply chain transparency startup, Provenance, which used blockchain to track ethical tuna sourcing in Indonesia, illustrating practical applications of the technology in the industry.

💼 Blockchain's Role in Trade Finance and Supply Chain Innovation

The final paragraph discusses the broader implications of blockchain technology for the global trade finance industry, which is valued at 18 trillion dollars and involves multiple stakeholders such as buyers, sellers, logistics providers, banks, customs, and third parties. It mentions that blockchain-based B2B trade and supply chain financing products are being developed to increase transparency, lower risk, boost efficiency, and better manage the entire supply chain. The paragraph concludes by emphasizing the potential of blockchain innovations to create significant commercial value in the industry.

Mindmap

Keywords

💡Blockchain

Blockchain is a decentralized network that records transactions across multiple computers in a secure and immutable way. It is the core technology discussed in the video, as it has the potential to revolutionize supply chain management by providing a transparent and tamper-proof record of all transactions. The script mentions that blockchain can track and record digital transactions, emphasizing its role in enhancing transparency and traceability in supply chains.

💡Supply Chain Management

Supply Chain Management (SCM) is the oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer. The video script highlights the potential of blockchain to improve SCM by enabling faster and more cost-effective delivery, enhancing traceability, and improving coordination among partners.

💡Decentralized Network

A decentralized network is one where operations are distributed across many nodes rather than being centralized to a single location or server. The script explains that blockchain operates as a decentralized network, which means there is no single controlling party, thus enhancing security and preventing tampering with the data.

💡Distributed Ledger

A distributed ledger is a database that is consensually shared and synchronized across multiple sites, institutions, or geographies. In the context of the video, the distributed ledger aspect of blockchain ensures that all parties in the supply chain have access to the same information, fostering trust and transparency.

💡Immutable

Immutable data refers to information that cannot be altered once it has been recorded. The script points out the importance of immutability in blockchain, as it ensures that any data recorded is permanent and cannot be changed, which is crucial for maintaining an accurate and reliable audit trail in supply chain management.

💡Real-time Tracking

Real-time tracking is the ability to monitor the location and status of goods or information as it moves through the supply chain without delay. The video script mentions that blockchain allows for real-time tracking of data, which can help in reducing errors and improving efficiency in supply chain operations.

💡Traceability

Traceability is the ability to follow the movement of a product or information backward from the point of sale to the starting point in the supply chain. The script discusses how blockchain can enhance traceability by providing a clear record of the origins and journey of products, which can help prevent fraud and ensure timely and correct delivery.

💡Partner Coordination

Partner coordination refers to the collaboration and communication between different entities involved in the supply chain. The video script suggests that blockchain can improve partner coordination by providing a shared and transparent view of the supply chain, facilitating better communication and decision-making.

💡Financing

Financing in the context of supply chains involves the financial transactions and arrangements necessary to support the production and distribution of goods. The script mentions that blockchain can facilitate access to financing by providing a transparent and verifiable record of transactions, which can lower risk and increase trust among financial institutions.

💡Transparency

Transparency in supply chain management means that all parties have access to clear and comprehensive information about the processes, practices, and performance of the supply chain. The video script emphasizes the potential of blockchain to increase transparency, which can lead to lower administrative expenses and improved trust among all stakeholders.

💡Ethical Manufacturing

Ethical manufacturing involves producing goods in a way that respects people, communities, and the environment. The script provides an example of how blockchain is being used to track ethical tuna sourcing, showcasing how blockchain can strengthen an organization's position as a pioneer in ethical manufacturing by ensuring the traceability and integrity of the supply chain.

Highlights

Blockchain technology's potential in revolutionizing Supply Chain Management (SCM).

The video is for educational and entertainment purposes, not financial advice.

Blockchain operates as a decentralized network tracking digital transactions.

A distributed ledger ensures no single party controls the blockchain.

Immutable data on the blockchain ensures a secure and unchangeable record.

Real-time tracking of data is possible with blockchain, creating a comprehensive audit trail.

Blockchain eliminates the need for reconciliation and error handling in SCM.

Blockchain can enhance product traceability and improve partner coordination in SCM.

Manufacturers can use blockchain to track the origins of raw materials and finished products.

Blockchain usage can prevent fraud and ensure timely and correct product delivery.

Increased transparency and traceability in the supply chain through blockchain.

Blockchain reduces administrative expenses in supply chain management.

Blockchain assists in recording detailed information for efficient supply chain management.

Data availability in blockchain improves visibility and compliance in outsourced manufacturing.

Increased traceability in the material supply chain can reduce losses from gray market and counterfeit products.

Blockchain can strengthen an organization's position as a leader in ethical manufacturing.

Companies are testing blockchain solutions for various purposes in supply chain transparency.

Provenance's pilot using blockchain for tracking ethical tuna sourcing in Indonesia.

Blockchain's role in the global trade finance industry, involving multiple stakeholders.

Ribbon's development of blockchain-based B2B trade and supply chain financing products.

Blockchain innovations' potential to create significant commercial value in the supply chain industry.