10 benefits blockchain brings to supply & procurement

Blockchain technology makes supply chains and sourcing more transparent, secure and efficient, and also reduces the risk of unknown ESG transgressions

Supply chain advantage of blockchain: 10. Increases security

Blockchain tech prevents important regulations being bypassed through its rogour in closing loopholes. Examples include protection against data tampering, and the creation of ‘ghost employees’. Blockchain can create a transparent audit trail of actions that cannot be manipulated.

Supply chain advantage of blockchain: 9. Sustainability 

By closing down illegal and unethical practices, Blockchain helps industry and governments act more sustainably. The tech brings unparalleled traceability which can help reduce environment transgressions such as illegally exported timber, or environmentally unsound palm oil trade..

Supply chain advantage of blockchain: 8. Objectivity

Blockchain tech makes decisions based on objective data. This eliminates human input that is based on ulterior motives like maximising profits. For example, the decision to fell or not to fell an individual tree will be based on verified data, rather than by distorting important - and more expensive - practices such as environmentally sound felling.

Supply chain advantage of blockchain: 7. Transparency

With blockchain, the sustainability and security of a product can be examined from end-to-end, providing reassurance - from raw material to finished product. 

Supply chain advantage of blockchain: 6. Cross-border compliance.

Zoned architecture enables those in the value chain to react to, and comply with, country-specific regulation.

Supply chain advantage of blockchain: 5. Ease of adoption. 5. The pressure to move to net zero is immense, and blockchain is a way to speed up the process of becoming more sustainable. This includes the rate at which businesses can enact change, as it streamlines the route to wider sustainability.

Supply chain advantage of blockchain: 4. Consumer confidence

Blockchain enables companies to identify the provenance of raw materials, and whether the supply of a product has violated ESG guidelines - so protecting businesses from reputational damage. 

Supply chain advantage of blockchain: Political compliance. 3. The European Commission (EC) is just one of many regional political bodies looking to design and develop territory-wide blockchain capabilities, compliance with which will determine how business is conducted, and by whom.

Supply chain advantage of blockchain: 2. Increased efficiency.

Supply chains can be fragmented, leading to inefficiencies. Blockchain allows data to be used in such a way that visibility is greater between the various tiers of the supply chain.

Supply chain advantage of blockchain: 1. Financial security

Payments made via blockchain can can be monitored by both parties, meaning suppliers are no longer at a disadvantage in the buying process while they wait for processing. Blockchain speeds up the process, giving the parties more control and making the supply chain more robust.

Share

Featured Articles

Circular economies and behavioural science

The possibility of achieving circular economies rests on approaches to consumption, and human and corporate behaviour

Solvay Supply chain visibility solves crop yield problem

Multinational chemical company Solvay achieves more than 200% yield of 'guar' – also known as the cluster bean – through its Sustainable Guar Initiative

TfS develops sophisticated systems in tracking CO2 emissions

'Together for Sustainability', a group of 37 chemicals companies develops a standardised chemical modelling system to accurately track carbon footprints

UK public procurement found to be linked to tax havens

Procurement Strategy

What your outdated CLM is really costing you

Procurement Strategy

Google's Surpiya Iyer on value chain 'perfect storm'

Procurement Strategy