Why businesses are integrating blockchain for supply-chain transparency
Evidence is mounting that companies pursuing sustainable business practices are more likely to thrive in the long term as they are better at identifying, understanding, and managing longer-term challenges, be they economic, social, environmental, or regulatory. But good sustainability practices must demonstrate transparency — nowhere more than with supply chains. Increased adoption of new technology like blockchain is enabling that clarity and empowering consumers to make informed purchase decisions.
Deloitte’s “Using blockchain to drive supply chain innovation” describes numerous benefits of using blockchain. It brings increased traceability of material to ensure corporate standards are met; it lowers losses arising from counterfeit/grey market trading; it improves visibility and compliance on outsourced contract manufacturing, and it results in reduced paperwork and administrative costs.
Examples of blockchain use cases span a variety of sectors, according to Rosa Sangiorgio, head of ESG at Pictet Wealth Management. “We have seen international food grocers use blockchain to develop a tracking system to monitor food provenance, freshness and to improve safety. Brands using blockchain technology to monitor the collection of their waste for recycling. Companies checking the origin of the raw materials used in products to ensure the sustainability of the process, or even to calculate greenhouse gas emissions,” she says.
“Blockchain can facilitate the transition to sustainable practices across all functions — from purchasing to production and logistics, marketing and sales.”
This article has been written in partnership with CNBC.