In today’s rapidly changing world and global economy, blockchain and supply chain are a winning combination that delivers businesses significantly increased transparency, security, cost-savings, and agility. In discussing the benefits of blockchain, it should be understood that this term has become a popular shorthand for a specific kind of distributed ledger (DL) designed to track and document transactions or digital interactions. In other words, all blockchains are DLs, but not all DLs are blockchains.
A distributed ledger is a type of database that spans multiple sites or locations, or that is shared among multiple stakeholders. This is in contrast to the centralized, localized databases that are still used by many companies. The primary difference between centralized databases and DLs is that the former has a single point of failure, making it exponentially more vulnerable to disruption.
At Pivot International, we’re at the forefront of deploying the most advanced supply chain, blockchain, and DL technologies to help companies overcome disruption, increase resilience, and successfully scale in a post-COVID-19 world. With nearly five decades of product development expertise that spans twelve industries and 200,000 square feet of manufacturing capability across three continents, we’re delivering leading-edge solutions for businesses worldwide.
What are the benefits of blockchain and DL technology?
DLs like blockchain are exceptionally valuable for cutting down operational inefficiencies. And because they are decentralized and their ledgers are inalterable, they provide unprecedented levels of data security.
Blockchain technology functions to create virtually tamper-proof documentation of highly sensitive activity or transactions that range from international wire transfers to shareholder’s financial information. Blockchain offers companies a secure digital alternative to expensive, time-consuming, paper-heavy, bureaucratic processes.
Data written to blockchain is etched on the network, generating an accurate and immutable audit trail. Because no single person owns or controls the data of a DL, and no one can alter records that have already been made, the chances of innocent error or outright fraud are all but eliminated.
Why are DL and blockchain technologies a winning combination with the supply chain?
Advantages of DL and blockchain applications include:
- Increased transparency — Enterprise-level organizations have large, complex, and unwieldy supply chains into which they seldom have sufficient transparency. Applying blockchain to supply chain management, record keeping, data tracing, and product tracking via embedded sensors and RFID tags gives companies the strategic insight they need for improving supply chain efficiencies or reconfiguring their relationships with suppliers.
- Enhanced agility — The real-time insight that blockchain and DL technologies bring to the supply chain helps companies become more agile in order to quickly identify and act on emerging opportunities.
- Reduced vulnerability to disruption — It’s impossible to defend against what you can’t see coming and rapidly respond to. The transparency and agility that blockchain and DL technologies promote help companies defend against disruption by pinpointing risks to their supply chain before they become dangerous threats.
- Greater client and consumer trust – Clients and consumers are increasingly demanding transparency into the supply chain. Whether this is a client wanting assurance that their manufacturing partner brings multi-tier sourcing transparency to the relationship, or a consumer concerned about sustainable sourcing, blockchain and DL technologies are becoming critical tools for generating trust.
At Pivot, we’re leading the industry with the technological investments necessary for helping our partners recover from disruption, fortify their businesses for the future, and successfully scale in a rapidly changing world. We are ISO-certified, FDA-approved, and bring an impressive track record of bringing award-winning products to market in both the best and most challenging of times. If you’d like to learn more about how we can support your business, contact us for a no-cost consultation today. We’re here to help.