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Blockchain to Boost Global Supply Chains by 2025

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CEO Insights Team

CEO Insights Team

Capgemini Research Institute, the research arm of the global Technology & Digital Transformation solutions leader – Capegemini, conducted a global survey of the adoption of blockchain technology by businesses worldwide. As per the study, blockchain is set to become omnipresent by 2025, and the distributed ledger technology will dominate manufacturing, consumer products and retail sector, leading a new era of transparency and trust.

Commenting on the report, Sudhir Pai, Chief Technology Officer, Financial Services, Capgemini, says, “There are some really exciting use cases in the marketplace that are showing the benefits of blockchain for improving the supply chain, but blockchain is not a silver bullet solution for an organization’s supply chain challenges.

Organizations trust blockchain technology to solve key issues and create new business opportunities, and it lends credibility to the digital ecosystem across the supply chain.

Blockchain’s ROI has not yet been quantified, and business models and processes will need to be redesigned for its adoption. Effective partnerships are needed across the supply chain to build an ecosystem-based blockchain strategy, integrated with broader technology deployments, to ensure that it can realize its potential”.

Entitled ‘Does blockchain hold the key to a new age of supply chain transparency and trust?’, the participants of the survey were 450 organizations where blockchain implementation is underway in their supply chain as a proof of concept, pilot or at-scale. The respondents were taken from across the consumer products, retail and manufacturing industries.

Developed countries like the UK (22 percent), France (17 percent) lead the way with at-scale and pilot implementation of blockchain in Europe whereas U.S (18 percent) leads in funding blockchain initiatives. Over 60 percent believes that blockchain is the next big thing as it transforms the way with its partners. These countries are set to grow their blockchain investment by 30 percent in the next three years. The driving factors such as cost saving (89 percent), enhanced traceability (81 percent) and enhanced transparency (79 percent) are the ones behind the current investments in blockchain.

“Organizations trust blockchain technology to solve key issues and create new business opportunities, and it lends credibility to the digital ecosystem across the supply chain. We believe that blockchain technology will play an integral role in the digital transformation of supply chain channels for a wide range of industries in the near future,” says Prof. Aleks Subic, Deputy Vice Chancellor (R&D), Swinburne University.