As consumers, regulators, and other stakeholders demand to know the origin of products on the market, producers, distributors, and retailers struggle to provide it. In today’s global supply chain, goods pass through numerous intermediaries from origin to consumer, leaving data spread across multiple systems in different formats. Piecing together the full product journey to ascertain authenticity and safety can be difficult. Sure, there are digital track-and-trace systems in place, but this information, too, is centrally held by a single stakeholder—and it can be costly to implement and maintain.
Blockchain technology offers a solution to product tracing’s complexities
by storing each leg of the journey on an immutable distributed ledger. With
appropriate permissions in place, real-time visibility becomes systemic,
enabling not only live track-and-trace but also numerous opportunities for
increased efficiency.
Exposing counterfeit goods with blockchain technology
The circular economy has also opened up a bourgeoning secondary market,
particularly for luxury goods, which poses additional challenges for companies.
How, for example, can a luxury brand support a secondary market for its
products without cannibalizing its own sales and destroying value? Previously,
stakeholders had to rely on trusted intermediaries to ascertain authenticity.
But Blockchain’s distributed ledger extends visibility beyond the supply chain,
past the original purchase, and into the secondary market without
intermediaries. With the ability to verify the authenticity of their products
even after they’ve left the store, consumer goods companies can make it easier
for consumers to distinguish real from counterfeit, removing doubt and
increasing the product’s value in their customers’ eyes. In fact, the original
producer or retailer could increase incremental sales by buying back and
re-selling the same product multiple times, not unlike the auto industry’s
certified pre-owned model.
Blockchain coupled with IoT devices and sensors provides unparalleled
visibility and efficiency gains into the logical and physical movement of goods
across their entire value cycle.
We hope you have found this article informative and interesting. For more
information or queries contact us to know more about this technology.
Comments
Post a Comment