In today’s digital era, blockchain has been gaining a lot of publicity through large industries and startups. People have started discovering the use of blockchain technology outside the industry of financial services. Many business ventures, such as Provenance aim for supply chain transparency through blockchain.
Introduction of Supply Chain to a Business Model
A supply chain is created by global networks that include suppliers, manufacturers, logistics, regulators, wholesalers, and consumers to deliver a product. As a business begins expanding, a modern supply chain also expands, resulting in a complex and contrasting network.
A traditional supply chain uses a paper-based method that results in disjointed data and locating products becomes time-consuming. The issues of a traditional supply chain can be observed since the beginning of a supply chain. Let’s look at the procedure of delivering products through the traditional supply chain.
The supplier will contain uncertain ethical sources; the manufacturer will have a fragmented data system, resulting in maximized data loss. The regulators won’t be able to report a quality control check and as the logistics are manual and time-taking, a real-time report would be impossible.
The wholesalers and retailers might be involved in overstocking of products or the illegal distribution causing uncertainness of authenticity due to imprecise supply and demand shifts. Eventually, the product delivered to a consumer will lack insight into the supply chain leading to the loss of consumers.
What are Track and Trace?
In a supply chain, the term ‘track & trace’ refers to the ability to identify the exact location of a product and the history of the product’s custody. Tracking the proof of origin throughout the journey is essential to ensure the authenticity (genuineness) of a product.
The lack of traceability in a supply chain, thereby causing transparency is a challenge faced by the industry in various fields that lead to delay, errors, frauds, increased costs, etc. The application of a modern supply chain is the need of the hour and solutions to end counterfeit activities and hoarding is demanded as well.
Introducing End-to-End Track and Trace by Blokchi
The IIT-K incubated company, medGrids has launched a product and an all-in-one solution called Blokchi. It is a blockchain-based, NFT-enabled packaging solution that works with the help of smart tags affixed on every product in the form of a QR code.
This unique QR code helps support modern supply chain participants with a unified view of data while being able to independently and securely verify transactions that include production and transportation updates. This helps in the improved efficiency of the supply chain.
Blokchi helps users utilize blockchain technology in a supply chain where multiple participants can hold transactions directly. The procedure does not require a central authority to verify transactions. Additionally, all members can access the shared ledger that immutably and cryptographically records all transactions.
Through the end-to-end track and trace by Blokchi, a supply chain will feature data visibility and a single source of truth as the document production updates to a single shared ledger. As transactions are time-stamped and up-to-date, companies will be updated on the product’s status and location in real-time.
This will help fight against concerns of counterfeit goods, legal issues, delays, and waste. In the case of a product recall, actions can be taken promptly. A business organization can also share their traceable data of the product with the consumer to verify the authenticity of the product and continue ethical supply chain practices.
The procedure of End-to-End Track and Trace Powered by NFT
We have understood how blockchain-based technology serves its purpose in Blokchi; now let’s understand the role of NFT QR codes. In a Blokchi supply chain, every product is attached with a uniquely generated QR code that contains unique serialization.
When a member of the supply chain receives the product, they must scan the QR code to update the product’s status. Track and trace assist a product through its journey as a raw material passed on to processing and manufacturing, regulatory control, retailers, and finally, consumers.
The benefits of implementing Blokchi in the supply chain are the prospectus of delivering tremendous business value by increasing transparency, reducing risk or doubts of a secured environment, and improving efficiency and overall supply management.
Other Blokchi’s Packaging Solution
Blokchi also serves numerous other packaging solutions to keep the procedure of the supply chain easy, effortless, swift, transparent, and secured. The following are the solutions offered by Blokchi:
- Anti-Counterfeit: Due to the implementation of end-to-end track and trace by Blokchi, counterfeiting can be tackled by identification of provenance (proof of origin) of a product. The benefits of an NFT QR coding system attached to a product will help identify the place of manufacture and locate the current status of the product.
- Anti-Hoarding: A participant of the supply chain cannot stock the product in their inventory. Each participant of the supply chain is asked to scan the unique QR code to alert the manufacturer of the package’s location. The scanning mechanism activated the NFT key for the product’s authorization and is then burnt. This helps prevent fraud and illegal hoarding.
- Serialization: By affixing a unique serial number to a package, companies can boost supply and demand management, reduce product loss, prevent counterfeit, and enhance brand integrity. Serialization helps track products at each step of the supply chain.
- Product Recall: Through the help of Blokchi, managed by blockchain function, the manufacturer will know about the product having defective parts, and can issue recalls. This minimizes financial loss by identifying expired or damaged goods.
- Inventory Management: Blokchi helps build a network across warehouses, manufacturers, suppliers, retailers, distributors, shipping executives that connect through a permanent immutable record of every transaction that occurred.
- Customer Loyalty Program: Blokchi uses a popular marketing strategy to retain consumers and maintain customer loyalty. It does so by incentivizing each purchase the consumer makes. A company, with the assistance of Blokchi, can proffer rewards like VIP passes, discounts, scratch cards, etc.
- Consumer Behavioral Insights: Blokchi helps brands take a look in the minds of consumers to predict their behavior of purchasing a particular product. This process occurs under end-to-end track and trace that records every purchase the consumer makes and predicts their next purchase. Blokchi also provides methods to grow the business by keeping consumers satisfied.
- Brand Integrity: A brand’s reputation stands on the grounds of the relationship a brand has with its target audience. If a brand is involved in suspicious activities, it automatically will lose consumers which will result in damaging brand reputation.
Blokchi is an all-in-one packaging solution allowing participants of a supply to set up and manage a network with few clicks. With the boon of real-time updates and a secured, transparent system, Blokchi makes it easy to manage a supply chain and expand a business.