Blockchain technology or, better, Distributed Ledger Technology, is going to change all aspects of digital business in general.
According to Vipul Goyal, an associate professor in the Computer Science Department at Carnegie Mellon University (CMU),”A lot of companies are interested in blockchain for creating more efficient workflows, but supply chain management is one of the “big, killer apps.”
This holds true for supply chain companies, whic are interested in using blockchains to keep track of how goods are moving and where they are. Blockchain shows potential for increasing the speed, scale, and visibility of supply chains, eliminating counterfeit-goods transactions while also improving batching, routing and inventory control.
Having said, combining blockchain with IoT’s proven real-time monitoring and tracking capability is about to redefine supply chains.
The majority of enterprises are prioritizing their blockchain pilots that concentrate on supply chains improvements (53%) and the Internet of Things (51%) according to Deloitte’s latest blockchain survey.
By 2023, blockchain will support the global movement and tracking of $2T of goods and services annually based on a recent Gartner
By 2020, Discrete Manufacturing, Transportation & Logistics and Utilities industries are projected to spend $40B each on IoT platforms, systems, and services.
The following are the top 8 ways blockchain and IoT are defining the future of supply chains:
1. Combining blockchain and IoT is providing the pharmaceutical and healthcare industry with stronger serialization techniques, reducing counterfeit drugs and medical products.
2. Improving distribution and logistics, tracking asset maintenance, improving product quality, preventing counterfeit products and enabling digital marketplaces are the use cases Capgemini predicts blockchain will have the greatest impact.
3. Combining blockchain and IoT is enabling manufacturers to pursue and excel at digital twin initiatives across their value chains.
4. 54% of suppliers and 51% of customers are expecting the organizations they do business with to take a leadership position on blockchain and IoT.
5. Consumer products and manufacturing lead adoption of blockchain today, followed by life sciences according to the latest Deloitte estimates.
6. 32% of enterprises are adopting blockchain to gain greater speed compared to existing systems, and 28% believe blockchain will open up new business models and revenue sources.
7. Blockchain has the potential to deliver between $80B and $110B in value across seven strategic financial sectors when supported by IoT, redefining their supply chains in the process.
8. Reducing product waste and perishable foods’ product margins while increasing traceability is attainable by combining blockchain and IoT.