The business environment is perpetually in flux, and the shifting environment and volatility have tested supply chain planning teams over the past two years, according to McKinsey.
Consequently, businesses have made significant advancements in supply chain digitization, such as implementing digital dashboards for comprehensive supply chain visibility.
Transforming your traditional model into a blockchain-based supply chain offers a compelling strategy.
But this can be a challenging undertaking.
This article provides a road map for incorporating blockchain technology into your supply chain, guiding you through three critical phases:
WHY: Why Do You Need Blockchain?
Begin by understanding the transformed landscape of modern supply chains and the persistence of three fundamental principles: trust, visibility, and verifiability.
WHAT: What Blockchain Solution Suits You?
Then, examine the specifics of blockchain and what to look for in a solution.
HOW: How to Implement a Blockchain Solution?
Finally, use #dltledgers’ step-by-step guide to implementing a blockchain-based supply chain solution.
Phase 1: WHY
Why Enable a Blockchain-based Supply Chain?
Today’s “phygital” value chain presents an unprecedented level of complexity. Successfully navigating this complexity is imperative before any blockchain solution implementation.
Action point: Start by examining the recent transformations.
- How has the digital-physical blend affected your supply chain operations?
- Has the pace of demand or intricacies of real-time tracking added strain?
- Which new challenges have emerged due to these changes?
Action point: Next, evaluate how these challenges have impacted the core principles of trust, visibility, and verifiability in your supply chain.
- Trust
What vulnerabilities could threaten trust in your operations? - Visibility
What are the blind spots obscuring your supply chain view? - Verifiability
Can you assure the authenticity of your products and transactions?
By assessing these challenges and their impact, you can prioritize needs and explore the benefits of a blockchain-based solution.
Phase 2: WHAT
What Blockchain Solution Suits You?
Understanding blockchain technology is key to choosing the ideal blockchain solution.
Action point: Start by answering three questions:
- How does blockchain work?
- How does it help address new and fundamental supply chain challenges?
- How can blockchain technology transform your supply chain and drive it toward success in the future?
Action point: Next, focus on specific features of blockchain solutions. This involves questioning the solution’s capacity for:
- Swift supply chain digitization
- Unified source of reliable data
- Effortless and smooth collaboration
- Regulatory adherence
- Decentralized trust anchored in compliance
- Minimized change management and total cost of ownership (TCO)
Action point: It’s equally important to anticipate potential implementation challenges. Ask yourself:
- What technical roadblocks might I encounter during the implementation process?
- How will the integration with existing systems impact business processes?
- How could this change affect internal and external stakeholders?
- What are the potential risks, and how can we mitigate them?
- Will there be significant changes in cost, and how will they affect the business in the short and long term?
Overcoming the complexities of blockchain implementation can seem daunting, but a reliable partner can help alleviate potential challenges.
Action point: Partner with #dltledgers to leverage their Proteus platform for a customized blockchain-based supply chain solution, or their App Hub for ready-to-deploy, industry-specific solutions.
#dltledgers integrates blockchain seamlessly into organizations, offering quick benefits.
#dltledgers’ Proteus platform, a low-code, blockchain-based solution for Multi-Enterprise Collaboration Networks, enables seamless and secure trade transactions, providing trust and visibility.
#dltledgers can tailor-make blockchain solutions via Proteus, simplifying usage for stakeholders and reducing transparency, security, and compliance challenges.
Most importantly, #dltledgers already has an App Hub, which offers ready-to-use, industry-specific blockchain apps for a variety of use cases.
Phase 3: HOW
How to Implement #dltledgers’ Blockchain-based Supply Chain Solutions
Building a blockchain-based supply chain requires a systematic, step-by-step approach to fully integrate and optimize the benefits of #dltledgers’ blockchain solution into your supply chain.
Throughout this transformation journey, you can rely on #dltledgers’ expertise and support.
Action point: Take the following steps
- Identify a Business Case: Determine the specific problem you want to solve in your supply chain using blockchain technology. Based on our supply chain domain expertise and extensive experience as a technology provider for multiple global customers, #dltledgers can help you answer some of these key questions while identifying the business case:
- What is the outcome and potential value/benefits with blockchain technology solutions in the supply chain?
- How does it impact the existing solutions and IT landscape?
- What investment is needed and how long does it take to implement?
For organizations that are not really sure where and how to start, #dltledgers can conduct a two-hour workshop with key stakeholders to assist them in identifying the business case.
> Project Scoping: Define the scope of the project, which will include resources, timelines, and expected deliverables.
> Define the Network Participants: Identify the relevant participants in your supply chain network, such as suppliers, manufacturers, distributors, retailers, customers and banks. Determine the permissions and access levels each participant should have.
> Design the Solution: Create a high-level design for your blockchain network, including the number of nodes, consensus mechanism, and data structure. Define the rules and logic governing your supply chain processes.
> Configure the Solution: Set up and configure the blockchain network infrastructure. This involves deploying nodes, establishing consensus mechanisms, and configuring network parameters.
> Integrate with Existing Systems: Integrate the blockchain solution with your existing supply chain systems, such as ERP (Enterprise Resource Planning) systems. This integration allows data to flow seamlessly between the blockchain and other systems.
> Onboard Network Participants: Invite the relevant participants to join the network. They will need to set up their nodes, establish secure identities, and obtain the necessary access permissions.
> Data Capture and Validation: Ensure that data entered into the blockchain is accurate and validated. You may need to define standards and protocols for data capture, verification, and encryption to maintain data integrity.
> Monitor and Maintain the Network: Regularly monitor the blockchain network for performance, security, and scalability. Conduct audits and security assessments to identify and resolve any vulnerabilities.
> Continuous Improvement: Continuously evaluate and refine your blockchain-based supply chain solution. Gather feedback from participants, identify pain points, and make iterative improvements to enhance efficiency, traceability, and transparency.
With the expertise and guidance from #dltledgers throughout this journey, each step towards blockchain implementation becomes clearer and more attainable.
Get started
Adopting a blockchain solution for your supply chain may seem complex, but with a clear roadmap, you will be able to understand why you need a blockchain-based supply chain, what to look for in a solution, and how to implement it.
With #dltledgers, you’re not alone in this process. To learn more about what #dltledgers can do for your supply chain, reach out to our experts.
