Blockchain technology yielded an impressive entry into the field of cryptocurrencies. Up till now this success story could not be continued in the field of supply chain management (SCM). The major reason for the lack of success is the far more complex linkage between physical and digital processes in supply chain networks. The implementation of Blockchain technology only becomes realistic, if the network reaches a mature level of connectivity and digitization. Once having reached that level, Blockchain offers the potential to securely store and exchange supply chain data within the network as a distributed ledger.
Due to a varying degree of digitization and connectivity across industries, the implementation of Blockchain in SCM on a broader scale remains challenging. In the future however, the difficulties we are facing right now will be reduced and successful Blockchain use cases will be realized. So what can you do right now?
Prior to implementing a sophisticated Blockchain solution, start by assessing the digital maturity of your supply chain. By defining fields of actions within the three layers (physical, IoT and digital layer), supply chains can be improved in a sustainable and effective manner – without Blockchain. From our experience, it is important to focus on the added business value instead of seeking for Blockchain applications. When it comes to the implementation of new technologies like Blockchain, it is important to have a clear vision about the value add of the technology accompanied by a defined roadmap to realize the desired solution. Exploit your current potential by optimizing supply chain processes and explore new technologies like Blockchain to secure future competitive advantages.