Adoption of blockchain technology in supply chain and logistics

Insight and Intel From Industry Experts. Like self-driving cars and fully automated homes, the potential of the blockchain is exciting—but implementation can struggle to meet its seamless, utopian pitch. Fortunately, technological generations are extremely short in pursuit of new breakthroughs, and blockchain is no exception. One of the key strengths of blockchain technology is scalability and native integration—SMBs on through to corporations can make it a part of their approach to logistics, whether intrinsically or through partnering with a blockchain-savvy 3PL provider. Business is conducted by default without blockchain—consider that with technologies as convenient as RFID chips and scanners, some warehouses still operate with paper at integral points. Others view it as a fad, just waiting it out while others cash out on the hype.

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Content:

• 4 Barriers to Adopting Blockchain in Supply Chains
• Blockchain for Supply Chain: Track and Trace
• Using blockchain to drive supply chain transparency
• Blockchain in the supply chain: a logistics director’s guide
• Adoption of Blockchain Technologyin Supply Chain and Logistics
• Blockchain in Supply Chain Management
• Resolving the Blockchain Paradox in Transportation and Logistics
• Blockchain: Benefits for the supply chain
• Blockchain Technology: Good in a Supply Chain Crisis
• 10 Benefits of Blockchain in Logistics; Why the Industry Needs Standards: Part 2

WATCH RELATED VIDEO: ADOPTION OF BLOCKCHAIN TECHNOLOGY TO THE SRI LANKAN PHARMACEUTICAL SUPPLY CHAIN: ANALYSIS OF FACTORS

4 Barriers to Adopting Blockchain in Supply Chains

As modern supply chains continue to expand, they also are becoming more complex and disparate. Typically, traditional supply chains use paper based and disjointed data systems that lead to information silos and make tracking products a time consuming task. Lack of traceability and transparency is an industry-wide challenge that leads to delays, errors, and increased costs.

Modern supply chain participants need a unified view of data, while still being able to independently and privately verify transactions such as production and transport updates. In the supply chain industry, track and trace refers to the ability to identify the past and present locations of all product inventory, as well as a history of product custody. Track and trace requires following products through a complex journey from raw material, through multiple geographic regions for processing and manufacturing, through regulatory control, and finally, to retailers and consumers.

Tracking provenance throughout this journey is crucial to ensuring product authenticity. The lack of data compatibility exposes supply chains to problems like visibility gaps, inaccurate supply and demand predictions, manual errors, counterfeiting, and compliance violations. Blockchain technology can be used to build applications on which multiple parties can transact directly via a peer-to-peer network, without the need for a central authority to verify transactions.

Each network participant has access to a shared ledger that immutably and cryptographically records all transactions, and there is no single network owner.

With blockchain, supply chain companies can document production updates to a single shared ledger, which provides complete data visibility and a single source of truth. This helps to combat issues like counterfeit goods, compliance violations, delays, and waste. In addition, immediate action can be taken during emergencies e.

Moreover, by combining blockchain with smart technology like Internet of Things, supply chains can automate tracking the conditions of production, transportation, and quality control. Companies can also choose to share track and trace data with their customers as a way to verify product authenticity and ethical supply chain practices. Amazon Managed Blockchain will enable our customers to track their products on the blockchain from the farm all the way through to consumption.

Track products throughout the supply chain to respond quickly in the event of food safety emergencies. Differentiate your brand from the rest of the market and empower customers by providing detailed food supply chain insights.

Compensate small farmers quickly and equitably. Food Safety Improved traceability is a large opportunity in the food and agriculture industry. This system obstructs visibility of the entire food product life cycle. For this reason, it can take companies several days, or even weeks to trace foodborne illness outbreaks to their original source. This time sensitive process is slowed further by paper based records and visibility gaps. With Amazon Managed Blockchain, food companies can have end-to-end visibility of the supply chain and can audit the immutable ledger to trace unsafe products almost instantly.

With a shared ledger, brands can quickly identify the source of contamination to limit the number of affected customers. Companies can also reduce financial loss by only discarding the affected products, while retaining positive brand reputation.

Yet, small producers in global supply chains continue to be undercompensated. Transparency on a blockchain network empowers farmers with the ability to track their produce throughout the supply chain, while document automation can quicken the payment process. Brands can also use blockchain applications to connect customers directly with the source of their food products, which is a valuable opportunity for market differentiation and to promote small farming communities.

Reduce counterfeit medicines. Minimize patient risk by reacting quickly to medication recalls, and reduce overall pharmaceutical costs. Counterfeit Medicine Counterfeit medicines are a pervasive issue that cost the pharma industry hundreds of billions of dollars each year, while putting millions of people at risk. With blockchain, pharmaceutical companies can closely track medications throughout the entire supply chain by individual serial numbers.

The network ledger records production updates by serial number, and serves as a tamper-proof source of truth that eliminates opportunity for nefarious actors.

Top-to-bottom visibility on a blockchain network also allows pharmaceutical companies to identify the weak points that present opportunity for counterfeit medicines to enter the supply chain.

Medication Recalls Pharma supply chains operate under particularly high stakes due to the risk of patient endangerment, strict FDA regulations, and the high cost of drug development. Medication recalls can occur when medications are mislabeled, contaminated, have compromised efficacy, or suffer from manufacturing defects. Pharmaceutical recalls must be carried out quickly, as any of these causes can lead to patient endangerment and loss of life.

Recalls can also mean financial loss; particularly if the company is unable to pinpoint the compromised drug batches and unnecessarily discards safe products. With an Amazon Managed Blockchain solution, pharma companies can respond more efficiently to recalls to minimize patient risk, reduce financial loss by precisely identifying unsafe medications, and discover the point of contamination during manufacturing. Blockchain can also help reduce recalls associated with quality through automation.

For example, a pharmaceutical company can integrate blockchain with temperature sensors to ensure the medications are properly refrigerated throughout the entire supply chain process. Inform consumers about the provenance of their clothes and shoes to demonstrate authenticity and ethical practices. Track spare auto parts and streamline auto safety recall processes to save money and reduce the number of affected customers.

Retail Transparency Apparel and shoe companies have intricate multinational supply chains that transform raw materials into wearable finished products. Clothing items and shoes have short product life cycles that quickly pass through several manufacturing sites and processors before arriving to retailers.

The complex and fast-paced nature of the textile and shoe industry makes it hard for companies to verify product provenance. Inbound supply chains need a more efficient way to track and trace incoming shipments, while consumers want to ensure their apparel and shoe purchases align with their ethics. With Amazon Managed Blockchain, retailers can document and share the sustainable and ethical provenance of their apparel and shoes.

This openness preserves brand reputation, promotes customer loyalty, and ensures compliance. Automotive Manufacturing Auto manufacturers lose billions annually due to damaged, lost, stolen, and counterfeit car parts.

With complete visibility on a blockchain network, auto companies can trace spare parts to their original manufacturer and query exactly where they were lost or damaged. Blockchain solutions can address the infiltration of poorly made counterfeit spare parts that put consumers at risk while costing auto companies money and customer satisfaction. Current efforts against the threat of counterfeit parts include QR codes and holographic labels, but there is still a chance experienced counterfeiters may outsmart these efforts.

With blockchain technology, parts are tracked by their individual QR codes on a tamper proof ledger, which fundamentally ensures part authenticity. More broadly, Amazon Managed Blockchain solutions can address the dispersed and complex nature of auto manufacturing by providing complete oversight of production. Safety Recalls Safety recalls are a common burden in the automotive industry that are costly to automobile manufacturers and inconvenient for customers.

Auto companies frequently issue recalls to thousands of cars because they are unable to confidently narrow down the unsafe vehicles. With Amazon Managed Blockchain, companies can know exactly which vehicles had defective parts installed, and issue recalls with precise and accurate scope. The network ledger can also be audited to track which phase of production produced the error.

Ensure ethical sourcing and authenticity of raw materials. Accurately track environmental impacts of production, revealing new opportunities for sustainability. Ethical Sourcing Minerals like cobalt and tantalum have become essential to the future of technology, causing their value to increase.

Companies have a responsibility to ethically source the materials that make up millions of smart phones, computers, and cars. Yet, achieving high traceability of raw materials is difficult when mining regions often have outdated paper-based systems that are susceptible to corruption. Amazon Managed Blockchain empowers companies to closely track provenance of raw materials from cultivation to consumer, and limit the opportunity for unethically sourced minerals to enter the supply chain.

Ensure Authenticity The diamond industry suffers from supply chain inefficiency that makes it difficult to ensure stones are conflict free and authentic. Laboratory grown diamonds are sold as natural ones, and diamond qualities can be fabricated or exaggerated.

Diamond companies have adopted blockchain to track diamond provenance and ensure they are compliant in only selling authentic and conflict free diamonds. Sustainability Mining is one of the largest contributors of carbon emissions. Blockchain can be used as a tool to track waste, emissions, and environmental impact at each stage of the supply chain. Improved supply chain visibility can reveal new opportunities for waste and energy reduction.

Companies can record environmental data to the ledger to demonstrate compliance with sustainability and environmental regulations. Amazon Managed Blockchain applications can also help to highlight and reward artisanal miners with certified sustainable and ethical mining practices. Amazon Managed Blockchain is a fully managed service that allows you to set up and manage a scalable blockchain network with just a few clicks.

Amazon Managed Blockchain eliminates the overhead required to create the network, and automatically scales to meet the demands of thousands of applications running millions of transactions. Once your network is up and running, Managed Blockchain makes it easy to manage and maintain your blockchain network.

It manages your certificates and lets you easily invite new members to join the network. What is Track and Trace? Track and Trace with Blockchain Blockchain technology can be used to build applications on which multiple parties can transact directly via a peer-to-peer network, without the need for a central authority to verify transactions.

Traditional Supply Chains. Supply Chains with Blockchain. Industry Use Cases. Food and Agriculture Track products throughout the supply chain to respond quickly in the event of food safety emergencies. Learn more. Pharmaceuticals Reduce counterfeit medicines. Manufacturing Inform consumers about the provenance of their clothes and shoes to demonstrate authenticity and ethical practices.

Mining Ensure ethical sourcing and authenticity of raw materials. Track and Trace on AWS with Amazon Managed Blockchain Amazon Managed Blockchain is a fully managed service that allows you to set up and manage a scalable blockchain network with just a few clicks.

Learn more about our Starter and Standard pricing editions. Sign up quickly for an AWS account today. Ending Support for Internet Explorer Got it. Supported browsers are Chrome, Firefox, Edge, and Safari. Learn more ».

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Blockchain for Supply Chain: Track and Trace

Blockchain technology can be applied in business organizations to functions related to operations and supply chains. Supply chains are becoming increasingly complex in structure and activities, with a diversity of participants, which means that many organizations lack of an integrated wiew of the entire supply chain. Large organizations have developed their own systems to exercise global control of their operations and establish their rules for suppliers and distributors. Other companies, however, are at the expense of what is determined by regulatory bodies or the intermediaries themselves. In any case, both options are characterized by poor transparency of their processes which causes problems and difficulties in the operation of the supply chain in everything related to security, traceability, authentication and verification of products. Some may think, and rightly so, that the blockchain, due to its distributed, infalsifiable and immutable nature, is very suitable for addressing supply chain problems and to provide it with greater visibility and security. One of the first possible functionalities is to track all the actions carried out in the supply chain, such as who performs them, at what time and where each action takes place.

Using blockchain to drive supply chain transparency

As the industry continue to grow at pace, it is becoming more and more demanding, therefore creating greater challenges for all companies operating in the supply chain. Stakeholders need to be agile and adapt to the re-shaped marketplace proactively. One of the main challenges that key players in the sector face are increased flows of information within the supply chain, lack of speed and efficiency of the deliveries, poor inventory tracking and the discrepancies regarding the payment and invoicing. With the expansion of the industry, the supply chain grows with it, and accordingly more and more parties become involved in it. Therefore, trust and collaboration are among the key enablers for more efficient and effective operations. However, sharing data between the different stakeholders presents an issue for all parts in the supply chain and here is where Blockchain has a significant role to play. When saying Blockchain the first thoughts that normally come to mind are Bitcoin, crypto, hi-tech and so on…. Blockchain is a mechanism that gives access to numerous parties, involved in the logistics process, to a shared database where they can exchange information, send documentation such as SMART contracts, consignment notes, ECMRs , share delivery status updates, perform payments and transactions etc. Overall, Blockchain creates a trusted environment between the key players and thus, reduces the percentage of inefficiencies and disruptions in the supply chain.

Blockchain in the supply chain: a logistics director’s guide

Cryptocurrencies are the most commonly cited examples of blockchain's potential, but it's the technology itself that's attracting attention from those outside finance. From increased security and visibility to tracking complex variables related to sustainability and ethical sourcing, blockchain is set to help procurement organizations in all industries lower their costs and improve performance while driving greater value for their companies. The core technology of the blockchain is the decentralized ledger, which records and protects transaction data shared among multiple parties. Cryptocurrencies like Bitcoin, Ethereum and Dogecoin leverage the blockchain to theoretically allow infinite and anonymous parties to conduct transactions without the need for an intermediary. In supply chain management, however, the focus is on allowing a set number of known parties to conduct transactions with one another directly while improving security, ensuring contract compliance and reducing costs.

Adoption of Blockchain Technologyin Supply Chain and Logistics

Blockchain technology's global emphasis on transforming supply chain management includes improving efficiency, accountability, traceability, and cost reduction. Blockchain technology attributes include reliability, traceability, data immutability and smart contracting. Blockchain technology solves problems of data collection, including the correction of data and paperless methods. However, not every business recognizes blockchain in the current supply chain due to the lack of understanding of the benefits in the potential of blockchain technology acceptance. The aim of this research is therefore to demonstrate the conceptual framework for the adoption of blockchain technology in supply chain, with reference to the technology acceptance model, which is divided into two parts, namely perceived usefulness and perceived ease of use. In addition, variables were applied to the organizational factors, uncertain environments, and supply chain strategies to explore the factors that could influence the adoption of Blockchain and the cost benefit in the future.

Blockchain in Supply Chain Management

Distributed under Creative Commons Attribution 4. Abstract The main aim of this study is to explore the role of blockchain technology in the sustainability and effectiveness of the pharmaceutical supply chain in the Kingdom of Saudi Arabia KSA. The objectives of this study are: to explore the opportunities for the blockchain technology to address the existing problems in the pharmaceutical supply chain; to uncover the barriers and challenges of blockchain adoption and implementation; to develop guidelines for a successful implementation of blockchain in the context of Saudi Arabia; and to investigate the perceptions of professionals about the impact of blockchain adoption in the pharmaceutical supply chain sector. The researchers have identified issues surrounding the lack of integration of IT systems in the healthcare systems in KSA. Further problems have been identified: such as medication shortage, lack of coordination among healthcare stakeholders, product wastage and lack of medication demand information.

Resolving the Blockchain Paradox in Transportation and Logistics

Tags: Logistics , Technology , Supply Chain. Blockchain, the technology that underpins digital currencies such as bitcoin, offers substantive benefits to supply chains disrupted by natural disasters such as hurricanes and floods. Blockchain is a digital ledger that creates a chronological and unchangeable record of transactions. It uses an autonomous network of computers to constantly verify the legitimacy of updates to the ledger.

Blockchain: Benefits for the supply chain

JavaScript is disabled for your browser. Some features of this site may not work without it. Toggle navigation. Blockchain technology in supply chain and logistics Author s Agarwal, Shweta, S.

Blockchain Technology: Good in a Supply Chain Crisis

This is part II of our series on how blockchain technology will impact the supply chain and logistics industry. In Part I , we talked about how blockchain technology can solve logistics inefficiencies and shed light on how it works. Monitoring the performance history of carriers and other suppliers through a blockchain framework allows parties to see evidence of past performance, including on-time deliveries, on-time pickups and more. Having a trustless and accurate record of asset history is imperative to ensure it complies with safety standards from factory floor to delivery. Every authorized member involved in a transaction can access critical data to validate its milestones.

10 Benefits of Blockchain in Logistics; Why the Industry Needs Standards: Part 2

In this research, the evolution of blockchain applied to supply chains has been mapped from the inception of the technology until June , utilizing primarily public data sources. We have analyzed blockchain projects on parameters such as their inception dates, types of blockchain, status, sectors applied to and type of organization that founded the project. We see the shift of market interest from private companies startups to public companies and consortia and the change in blockchain adoption from Ethereum to Hyperledger.