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, if not altogether impossible. 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.
Product visibility that supports the
circular economy
A
significant set of blockchain use cases centers around the “circular economy.”
Rather than using raw materials to make products, which are then consumed and
thrown away, circular economic models, strive to reduce waste, reuse products
and recycle materials. Major retailers, including Adidas, Neiman Marcus,
Nordstrom, and IKEA, have launched circular-economy initiatives. This approach
has been driven in part by consumer demand for sustainable and ethically
sourced products that has made supply-chain visibility an imperative for
maintaining brand value.
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.
Leveling the product tracing playing
field with decentralized data
Certainly,
implementing blockchain faces some obstacles, largely around the issue of
interoperability. If I've got a blockchain system and you've got a blockchain
system, we need to find a way to communicate. Any solution would raise issues
of data governance since such an exchange could potentially break the chain.
Large companies like Walmart have the leverage to make suppliers use their
blockchain, but smaller companies don’t have that power. What’s needed is
standardization, so that everyone’s on the same page. That’s the advantage of a
platform like the Oracle Blockchain Cloud Service. It’s an industry- and
application-agnostic foundation that makes building and implementing blockchain
applications much easier. Moreover, thanks to the inherent standardization of a
platform, these applications can be more flexible and future-proof.
Codezeros has worked with both medium and
large-sized enterprises. The company was founded in 2007 and focused on quality
app development services. Their dedication to delivering the best for every
project makes them stand out in the crowd among hundreds of other blockchain
technology providers. With more than 10 years in the blockchain industry, they
have played an instrumental role in developing more than 100 companies to grow
on a large scale. They specialized in developing blockchain applications, like
Ethereum, Corda, along with command over some popular languages, like node.js,
solidity, etc.
Email at:- sales@blockchaindevelopment.io
Connect with the expert team: - https://bit.ly/2B32Az7
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