Blockchain Technology – The New Foundation of Effective & Transparent Supply Chain Management

Consumers know surprisingly little about most of the products in everyday use. A highly connected and extensive network of retailers, distributors, transporters, storage facilities, and suppliers stand between individuals and products they consume. An average consumer only gets to enjoy the end result of design, production, delivery, and sales process of products, without ever knowing the chain of events and parties making it possible.

Let’s look at the flower business as an example of the scale and level of inefficiency of modern processes. The value of the global flower trade industry is nearly $105 billion. Around 700,000 metric tons of cut flowers are shipped each year. Shipping information passes through many hands, increasing the potential for delays in transport. One shipment can require sign-off from 30 unique organizations and up to 200 communications. A single lost form or late approval could leave the container stuck at port.

The entire process can take more than one month, but with digitization and blockchain-based process management, the container’s path can be traced with exceptional transparency and security, not mentioning the elimination of delays, resulting in significant cost savings for all parties. Any interested party with the goal to explore a particular step in the process to perform the quality assessment will be able to audit the network in which every step is verified by the relevant performing party.

The above-described inefficiencies do not cover all existing issues. Sweetbridge Foundation details more pressing problems facing global supply chains today, which include:

  1. Lack of liquidity: At any given moment, there are ...

To continue reading, sign up for MEDICI Inner Circle and get free access for 7 days.
100,000+ FinTech professionals trust MEDICI Inner Circle to stay up to date on the latest in financial services.