FIVE MINUTES WITH ...
Q . COULD YOU TELL US ABOUT SOME TRANSFORMATIONAL TECHNOLOGIES IN PROCUREMENT AND SUPPLY CHAINS ?
» In recent years , blockchain has come to the fore as a truly transformational technology with vast implications for procurement and supply chains . Blockchain is a shared digital system that allows users to record transactions and share information securely . Within supply chains , blockchain is used to move goods between parties . Vital information is recorded at each stage and all those involved are provided with a copy for record-keeping and authentication purposes .
This structure produces an audit trail from beginning to end and the data is tamper-resistant . It is therefore expected to significantly improve transparency and traceability of products within a supply chain .
The technology is perceived as being ground-breaking , having the potential to completely transform the way in which organisations conduct their business , particularly when it comes to supply chain management and procurement . For example , given the aforementioned characteristics of blockchain , the solution could also be utilised in the supply chain process for risk and quality assurance , contract compliance , and carbon footprint reporting . . Q . WHAT IMPACT HAS THIS TECHNOLOGY HAD ON INDUSTRIES SO FAR ?
» Since the inception of blockchain , the logistics industry has been one of the technology ’ s biggest supporters . Founded by some of the biggest firms in the global logistics and supply chain sector in August 2017 , the Blockchain in Transport
Alliance ( BiTA ) is the largest alliance of its kind globally , with the coalition currently being made up of around 500 members in an estimated 25 countries . The aim of this association is to boost blockchain ’ s adoption in the logistics industry by establishing industry standards , educating individuals within the industry about blockchain technology , and encouraging the use of new solutions .
What ’ s more , companies have also started to utilise blockchain technology as part of their supply chains . Examples of this can be seen with multinational corporations , such as FedEx and Nestle , trialling blockchain solutions in an attempt to drive transformation within their sustainability and product safety initiatives .
Adding to this , MHI recently conducted a survey amongst supply chain professionals into blockchain , with 68 % saying their businesses intend to adopt the technology within the next five years .
Q . WHAT ARE SOME OF THE DIFFICULTIES ASSOCIATED WITH ADOPTING BLOCKCHAIN ?
» In spite of there being plenty of optimism surrounding blockchain , its adoption and application in most companies has , to date , been relatively limited . In fact , more than 80 % of blockchain projects are currently in their proof-of-concept stage , with a small subsection of this number evolving towards full-scale deployment . This is due to blockchain ’ s adoption and scalability being fraught with numerous challenges .
Blockchain is also seen as being controversial due to environmental concerns regarding the technology . This pertains to issues concerning its energy emissions and usage . At the moment ,
24 April 2023