As blockchain is expected to provide applications across different sectors, it seems that the supply chain industry will also go through a series of developments. Market behaviour suggests that certain supply chain entities have already found blockchain-based supply chain benefits, and are expected to incorporate them into their systems.
According to MarketsandMarkets, a market research company, the global blockchain supply chain market size is expected to grow from $253 million in 2020 to $3,272 million in 2026, at a compound annual growth rate (CAGR) of 53.2%. “Digital systems are trying to inculcate blockchain-oriented applications. Due to blockchain’s decentralised nature, it helps with the integration of multiple supply chains without the need for an intermediary. Blockchain infused supply chains carry the potential to enhance efficiency, increase profits through increase in savings, help to streamline operations, among others,” Nikhil Goyal, co-founder, Beyond Imagination Technologies, a blockchain-based solutions platform, told FE Blockchain.
Insights from reports stated that blockchain-oriented supply chain management can remove the dependence on middlemen in international trade, boost competition, lower transaction costs, offer solutions for trade processes, among others. As per TechTarget, a marketing company, blockchain in supply chain can help ensure transparency in transactions, offer quality assurance, and provide cost savings. “Through blockchain-based supply chain, investors and transfer can get a complete picture of products from origin to delivery. The use of blockchain-induced supply chain management would help reduce blockages in the trading ecosystem, and also create new job opportunities,” Prashant Kumar, founder, weTrade, a cryptocurrency platform, stated.
Moreover, it is believed that statistics around blockchain usage have been on the rise, and governments aim to push for blockchain-based supply chains. A survey by Deloitte in 2020 showed that 55% of top executives took blockchain as a priority. According to International Business Machines Corporation (IBM), a technology company, Renault Group, an automobile manufacturer, has moved its supply chain documentation process to blockchain. Similarly, The Home Depot, a home improvement company, has induced blockchain-oriented supply chain solutions to improve buyer-supplier relationships. “Fo supply chain’s future, blockchain is expected to be an important step. Blockchain-oriented possibilities are expanding and include everything from financial services to food and product shipping. Furthermore, blockchain-oriented supply chain has found usage in sectors such as banking, agriculture, and maintenance of property ownership records for countries such as India, Kenya and East Africa,” Poorvi Sachar, head of operations, Tezos India, a blockchain adoption entity, mentioned.