Blockchain and IoT Coming Together to Address Supply Chain Pain Points Blockchain and IoT are the two important technologies that are combining to increase efficiency, reliability and speed of global supply chain operations. The two technologies can provide major benefits to manufacturers, suppliers, logistics service providers and other stake holders of a supply chain. IoT devices can be used to monitor and track the status of goods throughout their journey in a supply chain and the information can be shared with a blockchain-based framework so that all the network participants can get access to the relevant data in real time. Blockchain and IoT working together can significantly speed up the movement of goods across borders that typically require voluminous paperwork and bureaucracy. That way, blockchain becomes more secure and efficient, cross border transactions become cheaper and fraud can be prevented as the distributed ledger of a blockchain is literally impossible to manipulate. Smart contracts to speed up payment cycle Blockchain’s smart contracts provide efficiency and speed to supply chain as these selfexecuting computer programs contain terms of agreement between the parties that can be automatically executed based on the occurrence of defined events. For example, a manufacturer may enter into a smart contract with a retailer with the payment terms being conditional on the delivery of goods in good condition at the retailer’s facility. Banks of both - the manufacturer and retailer would have access to the status of the contract, while the IoT devices having access to the actual status of shipment can trigger the execution of payment terms upon delivery of the goods. As the banks have access to the original contract and delivery status, they can validate the transaction and speed up the payment cycle. If a condition is met, then only the payment is released. The concept of smart contracts can be extended beyond monetary transactions to other aspects of the blockchain as well, such as temperature control of location traceability. Ensuring that transmitted information is tamper proof
In the highly regulated industries such as pharmaceuticals and perishable food, the goods need to be transported within specific temperature ranges. It is possible to capture temperature feeds from the onboard sensors but what matters more is that the captured and transmitted data need to be tamperproof. An IoT based supply chain blockchain can ensure that captured information is authentic and only the authentic information is transmitted to the IoT platform. This will ensure that the received goods are regulatory compliant and the losses due to delays in investigations due to suspected frauds can be eliminated. Business specific IoT consulting and solutions Group50 is a leading business consultancy that provides IoT empowered supply chain blockchain solutions to businesses operating in various industries. Group50 has come up with its proprietary Scioebc plug-n-play blockchain which is a supply chain and IoT solution that makes use of next generation technology. Our supply chain blockchain consultants have extensive expertise in providing private and permissioned blockchain to the organizations that can only be accessed by the authorized persons of the organization. To get affordable IoT consulting and solutions for your business needs, contact Group50, and we will make sure that you get the most from our IoT and blockchain capabilities for your improved business outcomes.
Visit: www.group50.com