Blockchain is Transforming How Supply Chain Giants are Operating
“Blockchain. Blockchain. Blockchain. That’s all I hear about when I go to meetings.” This was Ken Brown’s sentiment during the Global Supply Chain Summit conducted on Tuesday. Brown is the senior vice president of SICPA North America, a supply chain security firm.
The popularity of blockchain among supply chain giants is understandable since the technology offers transparency, precise monitoring, data security, and acceleration of transactions. All of these benefits can drastically improve a company’s operation that is involved in the supply chain ecosystem.
Ralph Carter, FedEx’s vice president of trade and international affairs, said that traditional strategies mostly focused on control and collection of revenues. But because of blockchain enabling companies to operate securely and rapidly in the digital world, border management is being integrated into that design.
He added that efficient borders are required in today’s competitive market in order to stay relevant. “People need to be able to move items in and out quickly,” Carter said.
Indeed, commissioner of the U.S. Customs and Border Patrol Kevin McAleenan said that the proliferation of e-commerce has increased the incoming and outgoing numbers of shipping activities. This, in turn, placed a lot of weight on his agency. He has to keep the trade flowing while simultaneously increasing protection of consumers from counterfeit products, as well as being vigilant of illicit activities.
The above-mentioned advantages of blockchain technology greatly alleviate this pressure, creating immutable records of a product or package’s provenance and accurately tracking it as it moves across borders. President of the U.S. Chamber Tom Donohue said that adoption of the technology will accelerate the services of supply chain giants from the “speed of bureaucracy” to the “speed of commerce.”
The changes that blockchain-supported platforms will bring is being compared to the level of transition that the business world saw when bricks-and-mortar businesses transitioned into e-commerce. Right now, the supply chain market is looking for ways on how to activate dormant economic activity in order to give those lagging behind a boost to catch up with the what the current market is doing.