Insolar
In Collaboration with Insolar

Empowering Supply Chain Digital Transformation with Distributed Ledgers

November 2019

Cointelegraph Consulting and Insolar jointly published a report on supply chain inefficiencies and hindrances. It shared statistics and best practices of blockchain adoption to bring greater transparency and reduce costs across global supply chains.

Executive Summary

The Empowering Supply Chain Digital Transformation with Distributed Ledgers research took place in November 2019 in the USA and Switzerland. Based on the insights from Insolar's practice, the report highlights how enterprises require a pragmatic approach that leverages the best of cloud, blockchain, and data technologies under a single platform to improve supply chain efficiency and transparency.

The research is primarily focused on the practical side of blockchain as a tool to reduce costs and improve efficiencies of supply chain management. The research focuses on four themes:
  • Challenges in today's supply chain processes
  • Contribution of Industry 4.0 technologies to eliminating the existing inefficiencies
  • Usability of blockchain in enterprise scenarios
  • Understanding barriers that slow down blockchain adoption in the B2B sector.

In modern business environments, supply chain management runs into challenges that are mostly due to the growing length and complexity of the supply chains. Moreover, digital transformation disrupts established processes and floods the systems with data, making effective information management an essential function of any ERP system.

  • Poor Traceability

    Poor Traceability

    70% supply chain visibility gap between initial suppliers and internal clients’ systems
  • Poor Automation

    Poor Automation

    90% of retailers inaccurately forecast demand
  • Regulatory Compliance Burden

    Regulatory Compliance Burden

    45% of supply chain executives say that they are experiencing increased pressure for regulatory compliance and internal compliance to contracts.
  • Poor Relations Across Multiple Counterparties

    Poor Relations Across Multiple Counterparties

    60% of companies regularly overpay their supply chain vendors.

AI, robotization, IoT and blockchain are here to help, targeting critical areas that serve as a barrier to robust data management in supply chains, including the inability to provide transparent data synchronization, the unclear delegation of rights between stakeholders, and inefficient central data ownership.

The research analyzes five scenarios that blockchain is useful for in supply chain processes and covers the advantages blockchain solutions have over non-blockchain systems. Insolar and Cointelegraph Consulting also offer a five-stage framework for blockchain implementation in commercial applications.

Insolar

At the same time, this research also examined the challenges hindering blockchain adoption as a new standard for data management in supply chains.

  • Regulatory<br/>Issues

    Regulatory
    Issues

  • Costly Implementation and Lack&nbsp;of Interoperability

    Costly Implementation and Lack of Interoperability

  • Potential Security<br/>Threats

    Potential Security
    Threats

  • Lack of In-house<br/>Capabilities

    Lack of In-house
    Capabilities

  • ROI<br/>Uncertainty

    ROI
    Uncertainty

Insights from ‘Empowering Supply Chain Digital Transformation with Distributed Ledgers' research will help readers to assess the potential impact from deploying blockchain solutions, create a plan for supply chain digital transformation and navigate the plan's execution.