Supply Chain and Trade finance are set for mass disruption, via the Blockchain. There is a large amount of inefficiencies in the current supply chain financial transactional environment. Financial transaction costs are high, and common among today’s trade. A centralized, transparent vessel for financial transactions could help automate, and improve tomorrow’s financial trade and supply side landscape.
Currently factoring is a common offering provided by banks and other financial service providers. The bank typically charges 4 to 8 percent for factoring. This is a large hidden cost in the current supply chain environment. Blockchain type solutions could systematize, currently complex financial processes.
Distributed.com recently posted an article (link below), going into more depth on the subject. Here is a quote from that article, "Blockchain immutability, together with the transparent, multiple-party access it provides to the same shared ledger, are seen as key functional attributes to improving efficiency in the supply chain process of tracking the changing ownership of goods."
It could only be a matter of years, until Blockchain is adopted in the supply chain. Large companies like Maersk and Walmart are already testing solutions. The ledger format will give all partners in the trade, a level playing field as far as an audit trail. This could potentially lead to a reduction in brokers, due to the increase in transparency. It will be fun to follow the industry's integration of Blockchain over the coming months, and years.
Colin Phillips
cphillips@gmail.com
https://distributed.com/news/how-blockchain-technology-is-reinventing-global-trade-efficiency/
As far as blockchain for supply chain, it's happening in less time than a few years. The big players have a ton of savings on the line if they can get a solution working. This might not help any one coin or token, though: the big players like the idea of private or side chains, to keep some aspects of their trades secret. Still, rising tide lifts all boats, right?
Traceability for confirming product authenticity is also a potentially huge area that a blockchain in the supply chain could solve. The main reason is that it can simplify and standardise a chain of custody for goods from manufacturer to consumer. This can provide great protection for consumers and manufacturers against conterfeit goods.
Other than traceability, I am not sure how Blockchain will work with regards to Supply Chain. I am learning more about and attending an event with University of Arkansas and CSCMP in a couple of weeks.
Congratulations @colinphillips! You have received a personal award!
Click on the badge to view your Board of Honor.
Do not miss the last post from @steemitboard!
Participate in the SteemitBoard World Cup Contest!
Collect World Cup badges and win free SBD
Support the Gold Sponsors of the contest: @good-karma and @lukestokes
Congratulations @colinphillips! You received a personal award!
You can view your badges on your Steem Board and compare to others on the Steem Ranking
Do not miss the last post from @steemitboard:
Vote for @Steemitboard as a witness to get one more award and increased upvotes!