Product & Technology
Product & Technology
Supply chains are the circulatory system of the global economy. They get raw materials, commodities and components to markets that have a demand for them; enabling trade, production and generation of value. The global market for supply chain management solutions alone amounted to $25.74 Billion in 2022 - with a projected CAGR of 10.9% taking it to USD 72.1 billion by 2032.
However, even a cursory look through the complexities that modern supply chains entail can make their vulnerabilities apparent. Much of global - and even sub-national - trade is run on trust. From ordering parties to banks releasing foreign exchange into holding accounts, virtually every aspect of our supply chains depends on the correct execution of the next stage after it, in the process.
Of course, as soon as the word 'trust' makes an appearance, we can turn to Blockchain technology, for an upgraded and improved version. In addition, Blockchain-based supply chain solutions can lead to improved efficiency, greater reliability, and lower transaction costs.
Supply chains are the logistics mechanism connecting almost every segment of the economy - from suppliers and distributors, to manufacturers, retailers and consumers. Naturally, such a vast and all-encompassing ecosystem is inherently extremely complex. Although many functions an features in supply chain management are now administered by software instead of humans, there is still a lot of room for reinvention - as opposed to piecemeal change.
The typical supply chain involves a lot of collaboration between entities that rely on each other, and often don't even interact directly. The sheer scale and scope of integration means that none of the players involved are able to easily identify issues or optimize the entire chain. Every involved entity essentially 'lives with' the highly opaque nature of the supply chain, only because it has worked in the past.
Data-led optimization of supply chains has so far been rather limited - especially compared to other critical industrial sectors. This is not for want of trying, but simply because there are too many players involved for data to be available across all variables easily.
Essentially, Blockchain technology can help generate reliable data - from the micro to the macro level - across the various nodes and networks that make up supply chains. Once this information is gathered, each leg of the supply chain can be optimized with a focus on overall efficiency.
Some aspects of supply optimization made possible by Blockchain include:
End-to-End Visibility: with the origin and processing of consignments identifiable immediately, transactions can proceed with greater confidence and be better aligned with the plans of all involved entities.
Traceability of Issues: Identifying issues at every miniscule stage of a supply chain was never really possible in the past. Blockchain technology makes it possible to identify issues in specific transactions and interactions.
Ease of Cross-Border Payments: Blockchain-based tokens are increasingly playing an important role in transactions, either as actually payments or an exchange of value that can be easily redeemed. The lack of intermediaries means that these payments involve little to no cost above the invoiced amount.
Enhanced Trust: With each participant across a supply chain being able to trace and track every aspect of a supply chain, they are open to interactions with entities that they have never previously transacted with. The result is dramatically increased options for all involved.
Qila.io is an Infrastructure on Demand service for enterprises to build, run and manage their own dedicated Blockchain networks. Qila.io’s subscription service takes the hassle out of an enterprise running and managing their own Blockchain network setup. Using Qila.io’s out of the box technology, enterprises can tokenize real world assets, build and execute custom Smart Contracts, and write custom token protocols; without paying any gas fees or having complex coding knowledge.
Our ARK and ARK+ platforms offer easy and hassle-free Blockchain onboarding. Our PrivaSea wallet is an unimpeachable source of authenticated data that can help customers save all their critical information in a certifiable and trustworthy NFT format, in a single wallet.
Visit www.qila.io/ for a peek into a brave new world of endless possibilities, and let Qila help your business unlock the next level of growth, using Blockchain.
