{"id":5415,"date":"2024-04-23T08:43:59","date_gmt":"2024-04-23T08:43:59","guid":{"rendered":"https:\/\/nftmetta.com\/?p=5415"},"modified":"2024-04-23T08:44:01","modified_gmt":"2024-04-23T08:44:01","slug":"blockchains-impact-on-supply-chain","status":"publish","type":"post","link":"https:\/\/nftmetta.com\/blockchains-impact-on-supply-chain\/","title":{"rendered":"Blockchain\u2019s impact on supply chain"},"content":{"rendered":"\n

April 23, 2024<\/p>\n\n\n\n

By Anjali Kochhar<\/p>\n\n\n\n

Blockchain technology has been constantly in the news for various reasons whether good or bad. Few erroneously consider blockchain as a synonym for cryptocurrency. However, blockchain technology goes beyond the gambit of cryptocurrency and has its influx in fields like medicine, finance, education, and supply chain management for logistics companies.<\/p>\n\n\n\n

Today multiple platforms including Amazon Web Services are offering \u201cTrack and Trace services on Amazon Managed Blockchain<\/em>\u201d to the companies involved in supply chain.<\/p>\n\n\n\n

Utilising blockchain in supply chain management comes with specific requirements. These include limiting participation to verified, trusted partners; adopting a suitable consensus protocol; and implementing measures to prevent errors and counterfeit goods from entering the supply chain.<\/p>\n\n\n\n

According to Mr. Rajagopal Menon<\/u><\/a>, vice president, at India\u2019s leading crypto exchange WazirX<\/u><\/a>, \u201cBlockchain technology, originally developed for crypto networks, is proving to be a highly promising tool for supply chain management. This digital ledger system offers a complete, transparent, and tamperproof record of transactions, covering information flows, inventory flows, and financial flows. This capability addresses many of the challenges faced by supply chain partners.\u201d<\/p>\n\n\n\n

Use Cases of Blockchain in Supply Chain Management<\/p>\n\n\n\n

Medicines: One of the use cases of the logistics chain supported by the government of Karnataka is the online Supply Chain Management System for medicines (Aushada).<\/p>\n\n\n\n

The Aushada system<\/u><\/a> is integrated with blockchain to record the transactions related to the movement of drugs from the manufacturer to the supplier to the warehouse and then to the hospitals including quality checks. Smart contracts provide checks and balances at each stage in the supply chain and ensure that non-standard drugs are not moved down the supply chain.<\/p>\n\n\n\n

Farm Exports: Apples are being grown as part of a pilot project by the Niti Aayog<\/u><\/a> and the government of Himachal Pradesh. To ensure high-quality apples, they monitor them closely throughout the entire storage and distribution chain.<\/p>\n\n\n\n

Farm to Table: Sahyadri Farms in Maharashtra is pioneering a transformative approach to supply chain transparency by integrating all relevant data into a blockchain system, accessible to consumers through a simple QR code scan.<\/p>\n\n\n\n

This innovative integration ensures that every step\u2014from farm to table\u2014is easily verifiable, fostering transparency and trust. By scanning the QR code, consumers can see detailed information about the journey of their purchased produce.<\/p>\n\n\n\n

Seed Distribution: An article published in NDTV<\/u><\/a> noted that \u201cIn a significant development that would revolutionize agriculture in the country, the Directorate of Agriculture, Jharkhand, and global blockchain technology company, SettleMint, India jointly announced the successful launch of seed distribution to farmers based on blockchain technology\u201d.<\/p>\n\n\n\n

Renault: On official website of Renault<\/u><\/a> quoted Odile Panciatici, Blockchain Vice President, Groupe Renault as saying this of the company\u2019s blockchain vision: “The XCEED project we initiated is a powerful illustration of Groupe Renault\u2019s capacity to innovate. We are convinced that blockchain is a vector for transforming the automotive industry<\/p>\n\n\n\n

He further added, \u201cBlockchain technology comes into its own in a vast ecosystem involving several different companies, providing a link between the partners\u2019 various processes, computer systems, and databases. There are multiple uses for this type of technology in the automotive industry, where we have exchanges with countless actors from outside the company, such as suppliers, clients, and independent distributors.”<\/p>\n\n\n\n

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De Beers and Tracr: <\/strong>De Beers, the leading diamond company, uses blockchain technology to authenticate diamonds and ensure their ethical sourcing. Their platform, Tracr, provides a digital certificate for each diamond, recording key attributes and transactions. This initiative helps in preventing the trade of conflict diamonds and assures consumers of the product’s authenticity and ethical origins\u201d.<\/strong><\/strong><\/p>\n\n\n\n

Challenges Faced in widespread acceptance<\/strong><\/p>\n\n\n\n