It’s no longer a secret: Research has shown that the use of blockchain technology can benefit all: consumers, sellers, and suppliers. According to various reports, blockchain technology as a part of supply chain innovations will revolutionize the way retail and consumer goods trade work in the next 10 years. The results of the surveys predict that everyone in the supply chain will benefit greatly from implementing blockchain.
Reports mainly refer to blockchain use cases across the retail and consumer goods sectors across three areas of business: consumers, in supply chains, and billing and contracts. Blockchain technology can potentially reduce problems in each of these three areas, which includes four industry pain points: the ability to track everything related to product, compliance, shareholder management, and flexibility.
Here are some of the most interesting examples of blockchain deployment from some of these reports.
The studies analyzed the use of blockchain to improve service and protect the consumer. Some of the examples of successful implementation are locating stolen goods by marking each product, and when a customer makes a purchase they can check its authenticity and activate it within the system.
In this way, in the event of a product disappearing or being stolen, any subsequent transaction can be prevented, at the same time the owner is informed of its location and thus the sale or unauthorized possession of someone else’s product is prevented.
Targeted Product Recall
Similarly, blockchain technology can be used for targeted product recall by enabling manufacturers and sellers to identify dangerous products or parts of defective products and thereby easily and inexpensively withdraw them without disrupting customers.
Better Connection of All Parties Within the Supply Chain
When it comes to the supply chain and improving the process efficiency within it, examples have shown that blockchain can be used to better connect all parties within the supply chain, which was definitely the goal of digitization in this area. This is possible in a way that blockchain allows manufacturers to order or sell, as well as track and pay for goods when they arrive at their location.
Documentation would be written, updated, read, and validated by each participant in the supply chain, which would then confirm the maturity of the goods and thus allow the manufacturer to follow the entire delivery process. Charging would be done without difficulty throughout the entire flow of goods.
Billing and Contracts
The goal of using blockchain in the field of billing and contracts is to improve the transaction process, ensure the validity of contracts, and their implementation. Transactions in the blockchain environment allow customers to save time and money when paying for a product by either using cryptocurrencies or eliminating banking costs through cheaper and faster credit card payments.
It’s similar to B2B billing. Blockchain also allows payment for imported or exported goods, guaranteeing the payment of customs duties and taxes, and other costs.
Benefits for Consumers
Consumers can also benefit greatly from the implementation of blockchain in the form of savings, greater confidence, and transparency, as well as a safer and higher quality product. This is because blockchain technology has the ability to track, find and authenticate products, record contracts, guarantee information flow, and record transactions.
The common conclusion of all reports is that blockchain technology will become standard operating technology in the financial, manufacturing, and consumer industries and that the next five years will be a turning point as more and more companies discover the potential value of this technology by adopting supply chain management systems.
However, they warn that, as with the introduction of any new technology, there are potential pitfalls that blockchain development brings, which is why it’s very important to think carefully about the strategy before companies can rely heavily on blockchain technology and invest in it. There is, however, a huge belief that blockchain technology will be widespread in both retail and consumer goods trade.
The essence of this story is that the blockchain age is coming rapidly so the companies that don’t use this technology in the business process run the risk of being trampled down by competition.