Blockchain is among the most versatile and flexible technologies that have been developed in this lifetime. This technology type can be used for a wide variety of applications and solutions in various industries. Although blockchain is hugely popular in the financial industry and fueled the rise of cryptocurrency, it has also made great strides in other industries.
One of the industries greatly affected’ is the supply chain with blockchain industry. Using blockchain in conjunction with a global supply chain management system can tremendously help this sector.
Here is how the blockchain helps packagers enhance and improve the supply chain industry:
1. Development of Advance Distributed Ledger System in Packaging:
Blockchain’s use in the industry can be considered difficult to implement or impractical. But, it can be done, although the initial setup may take some effort, the long-term payoff is well worth it.
If you are thinking about using blockchain effectively to package goods that need to be shipped, you can use a distributed ledger system. Using a distributed ledger system can help everyone in gaining access to real-time information. Every process is transparent and thus contributes to element traceability.
2. Increase transparency with the help of blockchain:
Any block of information added to the distributed ledger system is immediately available for each participating country. This increases traceability transparency using the logistics and supply chain management. The supply chain with blockchain system uses a reference number, barcode, or QR code attached to the packaging.
Data for all subsequent shipments can be accessed in real-time. Shipping companies can also add real-time updates about the status of the goods. Through this, it is easier to track item packaging, and there is transparency with each step for everyone involved.
3. Streamline correspondence after delivery:
The normal supply chain model uses a long paper path that details each phase involved. Managing and verifying this paper path can be very difficult. For example, the correspondence with a shipment from Mombasa to Europe consists of about 200 communications.
With so many documents in one shipment, we might wonder how this can be changed. Using blockchain can help reduce the amount of shipping correspondence that is used to complete a delivery. With blockchain-based packaging labels, all correspondence is stored in a distributed ledger.
How do organizations like Maersk use this technology?
Maersk specializes in cross-border shipping. This experienced company realized the implications of a normal supply chain with blockchain system. To make shipping across borders easier, these companies and four others have started using a distributed book system.
This greatly increases efficiency, and to enable this system, packaging plays a large role in facilitating shipment tracking. Paper tracing becomes easier to follow, and carriers or people and recipients can get real-time information on their shipment status.
In fact, according to Morgan Stanley: “The revenue opportunity for blockchain within the freight and transportation space could end up being as much as $500 billion.”
Walmart blockchain implementation:
Walmart has initiated implementing a blockchain-based solution that ensures them tracking the origins and routes used by suppliers. The company has piloted this system to track the products that are imported from China and packaged in the US.
The strategy implemented has achieved good results, such as transaction authentication and better logging processes. This app includes a packaging label that makes all of this possible. Shipment tracking is much better when QR codes direct you to all correspondence and documents shared between the parties.
How does startup Provenance track food shipments?
The UK has welcomed the development of Provenance, a leading software company committed to ensuring transparency in the provision of blockchain products. It provides a blockchain system used to track the food supply in the country. The company has raised approximately $800K (£650K) to implement this system, which will impact packaging departments in the supply chain industry, according to businesswire. There are many benefits to tracking food delivery, especially avoiding food waste.
The company’s systems are being tested in the supply chain market in Southeast Asia. These trials have proven effective and therefore proceed to the second stage of implementing the system. The company’s goal is to integrate a traceable blockchain-based delivery system for all supply chain markets used by the UK.
Summing up:
Blockchain is a technology that packaging departments can surely implement in the supply chain with blockchain industry for enhancing and improving logistics management. They can get utilize for cross-border shipping and local supply chain markets. Some companies have started blockchain development in the supply chain department. These pilots have generated great outcomes and led to adopting a broader and advanced blockchain system in the packaging department.
Katalyst Software Services Limited is one of the advanced blockchain-based solutions providers offering supply chain management solutions empowering organization’s to transform. If you are looking to integrating a blockchain infrastructure into your business in 2021, our experts can assist you with the full implementation of blockchain functionality by addressing your business needs explicitly.
Contact us today!
