blockchain needs significant volumes of energy to run . In turn , this produces a large amount of greenhouse gas emissions . Even though those working in the blockchain industry are researching energy conservation methods : in its current form , the technology has a substantial carbon footprint .
What ’ s more , there have been examples of blockchain failing to prove its value in the logistics industry . For instance , when Maersk and IBM launched TradeLens – a blockchain solution for the shipping sector – in 2018 , the goal was to digitise container shipping on a safe and secure global tracking system . However , the firms announced late last year that they were ceasing operation of TradeLens , stating that the solution had failed to reach “ the level of commercial viability necessary to continue work and meet the financial expectations ”.
Adding to this , further issues surrounding blockchain ’ s use in supply chains range from data privacy and confidentiality concerns to there currently being a lack of industry standards in place , not to mention problems regarding integrating blockchain with pre-existing legacy systems .
Q . HOW SHOULD PROCUREMENT TEAMS APPROACH BLOCKCHAIN ADOPTION ?
» When it comes to the initial adoption of blockchain technology within supply chains , procurement teams should begin this journey by running a select number of pilots or proof-of-concept projects . This allows organisations to test things out on a small scale and ascertain if the technology is viable for their business , before deciding whether they should make a sizeable investment .
“ WE WORK WITH CLIENTS TO SUPPORT THEM WHEN IT COMES TO TACKLING THEIR MOST CHALLENGING ISSUES , SO THAT THEY CAN DETERMINE THE MOST APPROPRIATE STRATEGIES AND GENERATE THE ANSWERS IN AN EFFICIENT MANNER ”
Once a company has chosen to implement blockchain into its supply chain , there are several prerequisites it needs to meet prior to the tech adoption . Firstly , all parties involved must be willing to share data with each other , and they must all ensure the cost-benefit trade-off is advantageous for the completion of the project . All groups must be in agreement about making investments that allow the blockchain solution to capture and share relevant data . procurementmag . com 25