Supply chains around the world face issues with significant complications such as cost, speed, and quality. The Funding Partners believes that the most critical challenge – despite years of analysis, execution, and investment- is lack of transparency due to inconsistent and unavailable data, a huge amount of manual labour in terms of paperwork, lack of interoperability, and limited data on the product’s history and process flow. Blockchain technology has the ability to solve these aforementioned problems and add new value.
Blockchain began its commercial use roughly five years ago in the fintech industry to enable international payments and financial settlements to become more secure and efficient. Separate industries such as retail and consumer goods are also adopting blockchain technology. By utilizing its decentralized database functionality, global players such as Walmart and Carrefour intend to increase transparency and boost value at each component of the supply chain.
In the example of The Funding Partners’ durian supply chain, the significant potential of blockchain within the supply chain is obvious; in response to increased consumer demand for local products with an undisputed and clear origin, retailers could provide this information through an app. With a simple QR-code scan on their smartphone, consumers are able to know every step that their durian has gone through within the supply chain and match this information with their expectations.
Any kind of historical data as well as real-time data on durians, be it origin (such as harvest), timing (such as expiry date and transport duration), location (farm), or additional information (such as durian type and grade) is continuously available from the blockchain database in a single, consistent version that cannot be tampered and modified. Through value-added services like in-depth statistical data, The Funding Partners are able to make adjustments and improvements to their business strategies.
The Funding Partners adopts a three-step approach to integrating blockchain into the supply chain. The firm begins by setting up a simplified blockchain infrastructure to teach the organization how it works. Secondly, maximize the blockchain infrastructure to its full potential to foster data exchange, while ensuring that operations run smoothly. Finally, to integrate all components of the entire supply chain, including consumers and farmers, to the blockchain.
Once this is complete, blockchain elevates an already advantageous integrated supply chain to another level, improving customer experience, driving end-to-end value, and eliminating inefficiencies, thereby lowering costs and increasing profits for the firm.
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Original Source: The Funding Partners Explain: Blockchain-Supply Chain
