Supply Chain Managers Fall Out Of Love with Blockchain Technology Awaiting Proven Uses of Value
There is a growing ecstasy concerning the rise in the price of Bitcoin lately. Some companies are beginning to record more Bitcoin Futures, and some investors really see much gains, but despite all these, supply chain managers aren’t convinced on cryptos and decided not to buy blockchain.
Subsequently, the managers talked during a forum on blockchain tagged: Supply Management Forum. The event took place in London, and it had these industry leaders put together. They spoke on how they wait patiently for the use-cases and value of blockchain to be proven. The Supply Management Magazine (SMM) stated during a report that some companies aren’t really buying blockchain technology due to the fact that “it does not have a practical technology.”
Richard Harding – global purchasing transformation director of Jaguar Land Rovers – emphasized during the summit that he hasn’t seen anything fascinating about blockchain for him to invest in it. This is very odd given to the fact that Jaguar Land Rovers collaborated with IOTA to pay drivers in cryptos.
A representative from Jaguar Land Rovers recently told Hard Fork that collaboration between them and IOTA is still a “research project” and that time will tell if they will be a development or not.
Nevertheless, the strategic leader of procurement for Thurrock Council Stefanie Seff stated during the forum that blockchain has few use-cases but are yet to see anybody showcase the real advantage of using the blockchain technology.
However, according to a survey by Garner supply chain technology, by 2023, 90 percent of blockchain-based technologies will suffer “blockchain fatigue” as a result of the lack of strong use-cases. The survey involved respondents in which 19 percent of them ranked blockchain as very necessary to their businesses, and only 9 percent bought blockchain.
The report by Garner supply technology also suggested that the limited percent of individuals who have bought or invested in blockchain for their businesses was due to the fact that supply chain blockchain projects are minimal and do not measure up to the first interest of the blockchain’s application in the supply chain management.
The chief analyst of the research Alex Pradhan stated that,
“Supply chain blockchain projects have mostly focused on verifying authenticity, improving traceability and visibility, and improving transactional trust. However, most have remained pilot projects due to a combination of technology immaturity, lack of standards, overly ambitious scope, and a misunderstanding of how blockchain could, or should, actually help the supply chain. Inevitably, this is causing the market to experience blockchain fatigue.”
It is necessary to know that the term “blockchain fatigue” is the end-result of delving into a technology that doesn’t have standards.
According to a separate research report released last year by GlobalData, the cost of making use of blockchain solutions is superficial. As a result, most projects built on blockchain may be left behind for more other approaches – that is less costly – or they can be manipulated in such a way that the over-dependence on the blockchain technology will be reduced.
In a few years to come, we will get to see if “blockchain fatigue” will have an adverse effect on use-cases.