Modern Supply Chains Need Modern Solutions
In our last blog post, we introduced the market shift towards XaaS (everything-as-a-service) and the importance of data ownership. To further qualify the topic, we also introduced data privacy, security, integrity as requirements for a successful shit.
Now we want to introduce the importance of these issues to further explore the solution of a Blockchain-powered tamper-proof traceability solution for the modern supply chain.
Secure data sharing across extended supply chains
The importance of sharing information and sharing of data increased immensely in today’s economies and its success depends on the ability to trust data. This has to be secured across entire supply chains.
The number of transactions that flow through the supply chain now is growing exponentially as it starts to incorporate more moves through the supply chain. When taking a look at some of the macrotrends seen with order sizes, changes, skewed proliferation, product, as mentioned before, from China through to Vietnam then through to the States maybe through another intermediary. All of those touchpoints across a supply chain really aren’t secure but open or allow the possibility of either a bad actor to interfere or a misunderstanding, error or wrongful sharing of data to occur.
Decisions that need to be made, as the number of products in the supply chain and of processes, also the number of people touching products again, are growing exponentially. Consumers have come to expect the product to change on a very regular basis, product lines to be refreshed, additional skew levels and things of that nature. This tends to multiply the amount of information shared throughout the supply chain.
Secure IoT communication
Especially looking at M2M communication you see that it is even more important for processes
excluding human involvement. Hence, trustable information as machines process orders, as machines make decisions or assist in making decisions in the supply chain, is key to being able to have a supply chain that works in a robust manner, is tamper-proof or tamper-evident, and able to understand where your product is, who has touched it, what it is if it was sent through the proper channels and if you paid the right amount for it. All these things become increasingly important as you start to expand a global supply chain.
This is an oversimplification of a supply chain or a supply network. Some components become extremely prevalent now in the extended supply chain, one in the cloud, a server type which is accessed through the internet and often has its various computers distributed geographically. More and more companies move their entire infrastructure to the cloud, underlining again its importance in the extended supply chain and its processes. Other factors that push towards this shift are the expectation from partners, customers, and service providers that they’re going to be able to participate in a real-time or near real-time basis with transactions that are happening across the supply chain.
Increasing digital communication and parties
Every time that you open up transactions being processed electronically from multiple, often unrelated; third parties are another point of failure that needs assurance that data has been processed in a secure manner. And then the proliferation of mobile access really starts to multiply the issues. Being that everyone in a large grouping of people have mobile access to their corporate networks, they have mobile access to check on the status of things, to verify or acknowledge transactions. The number of electronic verification and transaction events that are coming through multiple cloud systems and because of this connectivity all the way back to your backend ERP systems and your backend decision systems, all of those now need to be secured. The trust level needs to be established. And certainly, blockchain is a very interesting technology that people are looking at.
Next weeks post will discuss blockchain in-depth and shall answer many questions that you may already have so stay tuned!