As the supply chain grows more complex, unexpected challenges can arise. Even though businesses have run with their suppliers for a long time, their supply chain can still be unpredictable. You can hold transparency and efficiency to tackle surprises with blockchain development solutions.
Target and the luxury bedding supplier worked together for many years. The world’s most expensive Egyptian cotton sheets were supplied to Target by the supplier. In 2016, however, they ceased collaborating. Target discovered that their premium linens were made from inferior cotton blends.
The supplier of linens was also taken aback by this development. Despite the challenge, they attempted to determine what went wrong, which took work. Throughout the years, the company purchased materials from several vendors who claimed to provide authentic Egyptian cotton. It’s unclear if it was a mistake or intentional fraud. As a result, the firm’s reputation and market share were negatively affected.
If the company had implemented blockchain development solutions in its supply chain, the outcome of this story might have been different. So here, our blockchain strategy experts will discuss four use cases showing how blockchain technology helps organisations avoid such issues. Let’s start!
Companies can recall food when a product poses a possibility of causing an outbreak of a contaminated illness. Microorganisms, parasites, and inadequate packaging primarily cause this. To protect their reputations and reduce the risk to public health, food manufacturers must act swiftly to remove hazardous products from store shelves.
However, it is more difficult to find the impacted products. For food firms, this procedure normally takes two months, but with worldwide supply networks, it may take even longer.
In the supply chain, blockchain technology networks enable businesses to respond swiftly to recalls. It documents every step food commodities take to reach store shelves. As a consequence, businesses can identify defective goods quickly. In addition to enhancing public safety, this results in less waste and decreased costs.
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A further disadvantage of food recalls is that they may affect all enterprises in the industry. A scandal is almost always inevitable once a recall has incurred too much damage. Even for brands with impeccable reputations, this becomes an issue. As a result of health concerns, customers develop skepticism for all products in the segment.
The Chinese milk crisis, a food-related occurrence, illustrated this. In 2008, authorities discovered melamine in infant powder, leading to 300,000 children developing kidney disease. A comprehensive investigation linked the chemical to nearby farmers who had used melamine to enhance the protein content of their milk. The government has now improved its monitoring of milk quality, but parents’ trust has not yet fully returned.
What more trustworthy services can they provide in this situation? They can practise blockchain for SCM to prove the safety of ingredients transparently. The technology meticulously records each ingredient and procedure used to manufacture the product. Customers can access this information on their mobile devices to verify the product’s safety.
Although Nestlé was not implicated in the infant milk scandal, they still faced adverse effects on their business. The company opted to implement blockchain technology to strengthen its position in the Chinese market. This solution enables tracking the path infant formula takes from production to store shelves. Users can access information about the ingredients, their source, and the manufacturer by scanning a chip on the formula package with a mobile phone.
Nestlé has possessed antennas in their milk containers that will break if someone tries to open them. This gives shoppers peace of mind that their groceries have not been interfered with during transport to the store.
The Benefits in Brief
Even the slightest temperature variations can negatively affect some products, necessitating unique management. These items include sustenance, chemical reagents, and medical supplies. Typically, they are transported in high-performance insulated packaging to prevent heat or cold exposure injury. Nevertheless, more is needed. The resulting damage can still be severe. For example, disruptions in the cold chain cause damage to one out of every five pharmaceutical products during transport.
Multiple factors play a role in causing the mentioned problem or issue. Power interruptions can disrupt or cause difficulties with refrigerators. If drivers leave refrigerators unattended or open doors, they may not adequately maintain the temperature.
In each of these circumstances, blockchain and IoT can be advantageous. During shipment, IoT sensors monitor location, temperature, and other variables. Blockchain records sensor data throughout the item’s journey through the logistics network. Companies now have complete control over the transportation temperature. Consequently, weak points in the cold chain can be quickly identified and addressed.
Using blockchain technology, SkyCell established IoT-enabled smart refrigerators for the transportation of pharmaceuticals. The sensors monitor the medication’s geolocation and storage environment’s temperature and humidity from anywhere in the world. The system stores these parameters With blockchain technology. Additionally, blockchain maintains a digital ledger containing all logistics records for each shipment. This evidence-worthy information is neither erasable nor falsifiable.
During the pandemic, one of SkyCell’s clients utilised this method to transport medications from Brussels to Mumbai. Due to the frequency of flight cancellations at the transfer point, the client stored the medication at the airport while actively seeking an alternate route. Occasionally, this procedure took days, which raised significant concerns due to the outside temperature ranging from +41 to +111 °F.
However, by using the SkyCell solution, the client managed to maintain the temperature within the containers between +37°F and +55°F. As a result, the drugs were conveyed to India in a safe-to-use condition, and the blockchain confirmed their safety. Implementing this technology allowed the company to avoid financial losses while ensuring the safety of the delivered medication.
The Benefits in Brief
Businesses are now mandated to prioritise environmental protection. A company’s impact on the environment affects its reputation and the choices made by investors. Consumers tend to choose products with sustainability credentials and are often willing to pay more.
Companies must use only 100 percent sustainable products from other suppliers to designate a product as sustainable. This is challenging for businesses at the end of the supply chain. In addition, the lengthier their supply chain, the more difficult it is to ascertain their legitimacy.
The characteristics of a blockchain can facilitate sustainability initiatives by enabling the creation of a transparent and traceable supply chain model for any product. Each blockchain record will include all pertinent information related to the product. In addition, the blockchain will record every event and circumstance related to the product. A vegetable could record information from planting through processing and transportation. Now businesses can quickly determine the actual sustainability of the products they intend to purchase.
By the end of 2023, Unilever wishes to have a deforestation-free supply chain; therefore, it must assess the sustainability of its current supply networks. Due to the inability of existing sustainability certification processes to convey this information, the company chose to implement blockchain.
They launched a pilot programme in Indonesia to track the origin of their purchased palm oil. Their first-mile suppliers generated digital tokens that mirrored palm oil movement along the supply chain. As a result, Unilever acquired information about the product, such as how it was grown and harvested.
Blockchain-based supply chain networks enable businesses to manage their suppliers more efficiently. The technology has made supply chains transparent and traceable, enabling enterprises to improve their market position after significant industry-wide incidents. It enables better managing product recalls, monitoring shipping conditions, preventing cargo hijacking, and verifying their raw materials’ origin.
So if you are thinking of executing blockchain tech in your supply chain movement, we are here. Sky Potential UK can aid you in blockchain development solutions in your supply chain. Our blockchain strategy experts can develop any component of the blockchain infrastructure, including the blockchain’s foundation, nodes, and ecosystem applications.
Our leading blockchain app development company specialises in creating cutting-edge blockchain applications tailored to your needs. Integrating blockchain solutions empowers your business with enhanced credibility, security, and transparency, safeguarding your brand’s reputation.
Moreover, our custom software development company is at the forefront of blockchain innovation, offering cutting-edge solutions for your blockchain development. Reach us now!