THE BLOCKCHAIN EFFECT: DRIVING EFFICIENCES IN HIGH CAPITAL INDUSTRIES
By Juan Miguel Pérez Rosas, CEO, Finboot
Since the industrial Revolution, the business world has long looked to technology to improve efficiencies and operations – and at pace. Today is no different, except perhaps the pace has accelerated.
When it comes to emerging tech, blockchain is gaining profile for its many business uses – with talk of its potential to revolutionise company operations across all sectors, geographies and supply chains. The first decentralised blockchain, conceptulaised by a person (or group of people) using the pseudonym Satoshi Nakamoto in 2008 was designed to serve as a public distributed ledger for bitcoin cryptocurrency transactions. It has since inspired a number of applications and publically readable blockchains with use cases ranging from secure identity verification to tracing the origins and movements of crops across global supply chains.
In fact, Cardiff-based tech firm Finboot, together with the New York-based Digital Supply Chain Institute (DCSI), considers blockchain to be one of the important solutions for supply chain resilience, transparency, sustainability and cost optimisation. Its benefits could be particularly significant in high capital industries like chemical, steel and cement manufacture.
Industrial sectors with complex supply chains such as these are employing new technologies to increase the visibility of pressure points, allowing them to accelerate their efficacy while improving the cost efficiency of their supply chain transformation. DSCI members have reported that they consider blockchain to be the ‘killer app’ when it comes to highlighting pain points across their value chains. The nature of blockchain as an immutable single source of truth means it is tamperproof and can help build trust – particularly when it comes to sourcing and tracking materials throughout supplychains. For this reason, it can drive businesses towards a more circular, greener, approach, which is good for business as consumers and governments alike are demanding businesses become more sustainable and ethical.
In the chemicals sector, for example, blockchain is being used to track processed chemicals and ensure product quality for customers. From raw materials to manufacturing to the arrival of the goods at the customer’s site – all supply chain data can be continuously tracked and yhis information made public.
Blockchain provides unmanipulable proof of the circular economy, enabling full automation of the supply chain while also providing protection against industrial espionage, and preventing money laundering and corruption.
From speaking with its customers, Finboot understands how businesses are struggling with the digital transformation of their supply chains and the substantial changes they need to make in terms of becoming more transparent and sustainable – from both an ESG and cost saving standpoint. Blockchain holds the key to business becoming more sustainable and efficient.
One such customer, chemical giant SABIC, has been using blockchain to increase the circularity of its supply chain, reduce emissions, increase efficiency and save money. So much so, it reports reduiced costs, time and improved data integration for all value chain partners in its third quarter 2022 highlights.
Again, this is just the beginning – over time, we can expect blockchain to be integrated into everyday BAU for firms the world over. Its capacity to collect, store and measure data accurately and reliably means it can escape potential for human error while giving companies the insights they need to progress both their digital and sustainability crednetials.