Technavio Report Predicts Increased Blockchain Use in Supply Chains, Near 80% Boost in Next 4 Years
Technavio Report Predicts Increased Use of Blockchain Tech In the Supply Chain Industry
The supply chain industry has been earmarked by many as one of the sectors that could benefit massively from the implementation of blockchain technology. According to a survey conducted by Technavio, the use of distributed ledger technology in the supply chain industry is expected to grow at a cumulative rate of 78.4% for the period between 2019 and 2023. As a result, the sector would benefit from increased efficiency in operations and reduced cases of fraud.
Apparently, the increased prevalence of cargo theft and mishandling will instigate a mass adoption of blockchain technology in the supply chain industry. These issues are expected to be accentuated in the international markets. Therefore, the sector will be compelled to bolster the security and reliability of the global supply chain by implementing blockchain-based solutions.
In 2016, there were over 200 incidences of armed robbery and piracy across the world. This worrying statistic calls for the deployment of new logistics systems with better security features, the ideal fit for this purpose is blockchain technology, mainly because of its transparency and immutability. As per Technavio, blockchain technology will enable shipping companies to track the entire shipping chain.
Demand For Blockchain-As-A-Service
The increasing demand for blockchain-based solutions for the supply chain industry is likely to spur the development of blockchain-as-a-service (BaaS) platforms. Essentially, BaaS providers design, develop and manage blockchain infrastructure on behalf of their clients. Some of the companies that are likely to offer such services include Microsoft, IBM, SAP, and Oracle and other leading tech firms. So far, Amazon Web Services has a BAAS enterprise-level solution that offers blockchain features at affordable costs.
Blockchain technology has the potential to revolutionize the entire supply chain industry. As mentioned above, it is the only viable solution to the challenges faced by the sector.