Blockchain is probably not children word yet, but within the next decade its affect businesses will rival the transformative capabilities with the Internet. The opportunity applying blockchain are endless, and for retailers blockchain is going to be revolutionary, write Cognizant’s Steven Skinner and Lata Varghese.
Blockchain results in a digital peer-to-peer network so that direct transactions among users. Its distributed and immutable nature eliminates costly redundancy and enables trust, eliminating the necessity for and expense of your intermediary. Public blockchains, for example Bitcoin, are anonymous and offered to anyone, while permissioned blockchains, for example may be found across a logistics, comprise categories of connected stakeholders that have a vested interest in conducting business together. Permissioned blockchains offer privacy, security and scalability and they are perfect towards the demands of your enterprise environment.
Highly secure by design, blockchains provide enhanced transparency by using a distributed ledger and public key encryption techniques that protect sensitive information while allowing verification and authentication of information by all its users. In place, this creates one set of books for the complex, Kogan Page Logistics Books, enabling retailers to detail your entire transaction history of a product or service from source to sale without each retailer offering power over its data and assets.
Blockchain allows retailers to validate a product’s provenance and guarantee authenticity, helping combat counterfeit goods and reinforce value of premium products. This is particularly imperative that you upper and lower line growth as an estimated $461 billion in imported counterfeit goods hit the globe market every year, in line with the OECD as well as the Western european Intellectual Property Office. While there are numerous applications for blockchain within the retail world, its business value towards the logistics is most readily apparent and just understood.
Blockchain technologies are truly transformational towards the logistics
Blockchains can leverage so-called smart contracts within the logistics to complete actions based on a specified set of triggers, creating both controls and efficiencies. For instance, every time a retailer confirms receipt of a shipment for the blockchain, a good contract might automatically initiate payment towards the appropriate parties. Or, a good contract could automatically trigger performance of your insurance policies every time a sensor detects anomalies inside a storage warehouse. Smart contracts might also be accustomed to make procurement decisions based on a defined set of attributes, streamlining the procurement process. Developing a transformational blockchain network can drive efficiencies through the entire logistics, lower costs and counter-party risks through disintermediation, and improve customer relationships by offering indisputable proof authenticity.
Because blockchain adoption within the retail market is a maturing technology, many executives wonder if to act now or wait-and-see before jumping on board. A great starting point would be to define use cases for blockchain that address particular pain points or improve optimisation. From there, developing proof concepts and executing pilots will help decide how, when or whether to unleash the strength of blockchain across your organisation’s logistics.
Understanding blockchain’s implications towards the industry now can drive future decisions about technology and permit executives to guide how blockchains evolve. Those on the forefront will shape blockchain’s evolution to be perfect for the requirements of their organisations thereby driving competitive advantage. Blockchain technologies are truly transformational towards the logistics, and definately will require change with a cultural, technological, and business process level much like that relating to the web. Those who are not able to embark on that evolution now may pay the price for late adoption.
Related: ‘Blockchain Technology: The way it operates, main advantages and challenges’ and ‘Consortium launches blockchain technology initiative for logistics’.
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