Supply Chain News

Transforming Your Supply Chain Business Networks with Blockchain Technology

Imagine fundamentally changing how business deals are executed - emerging blockchain technology could vaporize roadblocks in all supply chain networks, here's how.

My family is currently experiencing the joy of purchasing a new home.

One of the painful parts of acquiring a new home, however, is the trail of paper and documents that need to be exchanged, signed and validated.

Between mortgage lenders, insurance companies, inspections and government checks, it can be a lengthy process to legally and safely buy our new home.

Each day, people like me, as well as enterprises and governments, buy and trade assets through complex business transactions: from simple deals like purchasing a new car to more complex cross-border trades.

The friction - or inefficiency - of various brokers exists across even simple business networks that take time, incur costs, and increase risk.

Imagine fundamentally changing how business deals are executed by reducing time, cost and risk with blockchains.

Veena Pureswaran

“Imagine fundamentally changing how business deals are executed”Veena Pureswaran,
Global Research Leader, Blockchain at the IBM Institute for Business Value

A New Reality for Blockchains
At the ‘Blockchain in the Open’ event at the Churchill Club in San Francisco, IBM Institute for Business Value (IBV) announced a new study ‘Fast Forward: Rethinking enterprises, ecosystems and economies with blockchains’ which outlines how this vision will soon become a reality.

The study is the first in a new series examining how blockchains can vaporize frictions to bring new speed, efficiency and transparency to all levels of the business network from enterprises to ecosystems and economies.

In contrast to most business automation today, distributed ledger technologies like blockchains are built on shared ledgers where participants write transactions in near real-time to an unbreakable chain that becomes a permanent record of an asset or transaction.

This is viewable by all parties in the transaction.

In the study, we observe that despite many technology and business innovations, three types of frictions still predominate - lack of access to information, interaction such as transaction costs and innovation including restrictive regulations - and are holding back business growth.

We identified five key attributes of the emerging blockchain technology including how its distributed across the network, yet secure, transparent, consensus-based and flexible - and how these attributes have the potential to vaporize existing frictions and profoundly impact current business models.

Consider how assets from cars to warranties, art to corporate bonds – even identity-based assets, like health or tax records – can be shared, exchanged or transferred on a blockchain platform with far greater efficiency and pose less risk to privacy.

As transaction costs plummet and the way organizations are governed matters more and more, blockchains will create a new distributed form of business governed and managed transparently with digital contracts that include by-laws agreed on by consensus.

Blockchains will also eliminate the need for costly third party institutions or intermediaries to broker trust because smart contracts, certifications and digital compliance will optimize transactional relationships.

Decreasing Friction; Increasing Trust
As blockchains accelerate the flow of capital and the creation of wealth, our economies and interactions will be less subject to the fits and starts of friction, and instead head toward something more like perpetual motion: a state of fast forward.

New services delivered on blockchain networks may accelerate access and liberate those that were once locked out of efficient value creation to fully participate in an “all-in” economy.

These monumental changes may reset the clock on the science of organizational management, the tightening of trust and the economics of wealth creation.

As a result, blockchains will enable profound economic progress enjoyed and driven by a greater number of individuals and organizations.

While blockchains can powerfully improve businesses’ efficiency, trust and value, C-Suite executives must carefully evaluate where blockchains can give them the greatest gains for their business and where they do not.

We recommend in our study that businesses answer these three questions:

  1. How fast should I move?
  2. Can we achieve network-wide accepted standards?
  3. How can I scale with new revenue models?

This cross-industry report is the first in a series by IBM’s IBV over the coming months.

We plan to interview over a thousand executives on their experiences, intentions and expectations about the technology’s impact on their businesses.

About the Author
Veena Pureswaran is Global Research Leader, Blockchain at the IBM Institute for Business Value

Source: Reprinted with permission of Longitudes, the UPS blog devoted to the trends shaping the global economy.

Related Article: Why Blockchain is a Game Changer for Supply Chain Management Transparency


Article Topics
Trends   Supply Chain   Global Trade   Bitcoin   Blockchain   All topics


Comments
Be the first to post a comment.
You must be logged in to post a comment. Login.

 
Latest Supply Chain News
Responding to Disruptive Delivery Models and Rising e-Commerce in Asia-Pacific
With global giants like Amazon and Alibaba using their supply chains as a way to gain a competitive advantage, smaller retailers risk being left behind.

Global Supply Chain Management Platform for Cannabis
DMG Blockchain Solutions has planned capabilities of a new global supply chain management application that will include supply chain technology and integration across the legal cannabis supply chain.

6 Ways Artificial Intelligence Technology Is Impacting Logistics and Supply Chain Management
Artificial Intelligence is already enhancing our lives as consumers, now it is picking up momentum in supply chain management and logistics, and managers should pay close attention as more AI-enhanced…

8 Fundamentals for Achieving Artificial Intelligence Success in the Supply Chain
In the race to use AI, many companies have made attempts to implement it, but the results have been disappointing, and despite its benefits when looked at through the lens of a supply chain executive,…


 

24|7 Pro Team

The 24|7 Team is your direct pipeline to solutions for your business challenges. It's your opportunity to have supply chain and logistics experts look at your specific challenges and needs, and give you free, no-obligation advice, solutions, and information.

The 24|7 Team will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

1
  Choose a topic for your RFP

Transportation RFP/RFI

The Transportation RFP is your direct pipeline to solutions for your transportation challenges. It's your opportunity to have logistics experts look at your specific transportation challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect software or system can be an indomitable challenge. Using this transportation/TMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

Warehouse/DC Management RFP/RFI

The Warehouse Management Systems (WMS) RFP is your direct pipeline to solutions for your WMS challenges. It's your opportunity to have logistics experts look at your specific WMS challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect WMS solution can be an indomitable challenge. Using this WMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your WMS Request for Proposal list.

Supply Chain RFP/RFI

The Supply Chain RFP is your opportunity to have logistics experts look at your specific challenges and needs, and receive free, no-obligation advice, solutions, and information. It simplifies finding a pool of likely partners, building your knowledge base, and preparing your Request for Proposal list. The companies in the Logistics Planner have agreed to respond to your request for in-depth information and follow-up, and your request is totally confidential.

Software/Technology RFP/RFI

The Software/Technology is your direct pipeline to solutions for your logistics information technology challenges. It's your opportunity to have logistics experts look at your specific technology challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request. Whether it's WMS, TMS, Mobile or Cloud, our pros can help.

The companies listed below have agreed to respond to your request for in-depth information and follow-up. Your request is totally confidential.

Executive Education RFI

The Logistics and Supply Chain Education RFI can help you identify the schools, coursework, continuing education, distance learning and certification opportunities available from leading logistics educational institutions.

Upgrade and improve your logistics and supply chain skillsets. Whatever route you choose—advanced degree, executive education, certification or distance learning—the time and money you invest in your education today can pay off in continued career success tomorrow. Contact leading universities and professional institutions for the information you need to prepare for the future.

Third Party Logistics RFP/RFI

This 3PL Request for Proposal (RFP)/Request for Information (RFI) can help you find the 3PL and 4PL providers that can meet your specific 3PL service challenges and needs. The 3PL companies below will provide free, no-obligation third-party logistics advice, solutions, and information.

Ask your 3PL questions, you'll get answers. Simply complete the information, and detail your 3PL challenges. Then, check off the third-party logistics companies that you want to review your request.

1. Choose an RFI topic.
2. Enter your contact information and challenge.
3. Select companies and optional categories.
4. Submit.


2

Your Information



Your Challenge, Problem or Request *

3

Select Transportation Companies

  • Select All

  • 3Gtms
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • One Network
  • Pitt Ohio
  • Purolator
  • Quintiq
  • SEKO Logistics
  • SMC3


Select Relevent Categories

  • Air Freight
  • Intermodal
  • Motor Freight
  • Ocean Freight
  • Rail Freight
  • TMS

Select Warehouse/DC Management Companies

  • Select All

  • 3PL Central
  • Apex Supply Chain Tech.
  • Honeywell Intelligrated
  • Kuebix
  • Legacy Supply Chain Svs.
  • Swisslog
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Auto ID & Data Capture
  • Automation
  • Conveyors & Sortation
  • Lift Trucks
  • Packaging & Labeling
  • Pallets & Containers
  • Shelving & Racking
  • WMS

Select Supply Chain Companies

  • Select All

  • 3Gtms
  • 3PL Central
  • Amber Road
  • Apex Supply Chain Tech.
  • APICS
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Frontier Business
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • Logility
  • One Network
  • Purolator
  • Quintiq
  • SMC3
  • Synchrono
  • TAKE Supply Chain
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Global Trade
  • Inventory Management
  • Risk Management
  • Sustainability

Select Software/Technology Companies

  • Select All

  • 3GTMS
  • 3PL Central
  • Apex Supply Chain Tech.
  • BluJay Solutions
  • Honeywell Intelligrated
  • Frontier Business
  • Kuebix
  • Logility
  • One Network
  • Quintiq
  • SMC3
  • Swisslog Logistics
  • Synchrono
  • TAKE Supply Chain
  • Zebra Technologies


Select Relevent Categories

  • ERP
  • Sales & Operations
  • Sourcing/Procurement
  • Optimization
  • Transportation Mgmt
  • Warehouse Mgmt

Select Executive Education Choices

  • Select All

  • Graduate Courses
  • Online/Distance
  • Executive Education
  • Certifications
  • Undergraduate
  • Seminars
  • Associations
  • Conferences
  • Tradeshows


Select Third Party Logistics Companies

  • Select All

  • 3PL Central
  • Landstar
  • Legacy Supply Chain Svs.
  • Purolator
  • SEKO Logistics
  • Westfalia Technologies


4
 

24|7 Company Profiles