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Blockchain’s potential for Decentralization continues to spark interest amongst Supply Chain Leaders

CoinDesk published an article last week commenting on the potential power that blockchain technology holds for the future of global supply chains.

The article bears an interesting commentary regarding the competiveness of supply chains, when choosing to adopt and collaborate within decentralized (blockchain) networks.

For those who don’t know, blockchain technology is rapidly becoming one of the most talked about, and researched, business technologies. Blockchain serves as the technological platform for BitCoin and cryptocurrency networks. The basis of its uniqueness lies within its public ledger formatting. Blockchains are decentralized networks that streamline transparency amongst collaborators who share access to the blockchain. This capability holds unimaginable potential for business application, especially amongst global supply chains.

But, as recapped by CoinDesk’s article, “Blockchains are a technology of tomorrow, not today” (Casey 2017).

Meanwhile, IT teams and software vendors, alike, are vying to create supply chain management platforms that can harness the power of blockchain technology.

Competitiveness capabilities within supply chain management development are key drivers behind the race towards implementing blockchain technology.

“Smaller upstream players occupying spots earlier on in the chain are outgunned by the bigger players and generally can’t influence the activities of others enough to warrant employing a supply-chain manager. Yet, ironically, improved chain transparency and visibility from better supply-chain management would help them gain bargaining power vis-à-vis the big guys” (Casey 2017).

Benefits, from implementing blockchain solutions - for a smaller player - would most likely be more impactful than in a larger – more centralized – supply chain management body.

Small to middle-sized firms can experience a lack in trust amongst stakeholders. Blockchain technology and the concept of a mutually shared, internally vetted, ledger could aid these stakeholders to achieve higher levels of trust, and ultimately visibility and efficiency (Casey 2017).

As stated, blockchain technology is far off from being a mainstream technology with supply chain applications, but the wheels have begun to spin. You can bet your bottom dollar, blockchain tech will be a part of the dynamic and agile development of supply chains globally. 

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Topics

  • Finance

Categories

  • business
  • supplier relationship management
  • supply chain
  • supply chain management
  • trends
  • blockchain
  • technology

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Sam Jenks

Press contact Communications Lead Communications and Marketing 0703644132

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