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NFTs 🔗 Supply Chain 🚢
Can NFTs help the traditional logistical supply chain industry evolve into a robust blockchain-based process in the near future?
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Supply Chain x NFTs
You know what they say: a supply chain is only as strong as its weakest link. And let's face it, global supply chains are about as strong as a wet noodle. That's where blockchain technology comes in, and it's not just for cryptocurrency enthusiasts anymore.
With its fancy traceability features, blockchain has already shown promise in trade finance, thanks to smart contracts and infrastructure layers like Ethereum and Solana. But now, it's time for the non-fungible tokens (NFTs) to strut their stuff.
Sure, NFTs weren't necessarily created to revolutionise supply chains, but who cares about intentions when you have results like this? With NFTs acting as "digital twins" of real-world goods, supply chains finally have a way to trace their products from start to finish. It's like playing detective, but without the fedora and trench coat.
What’s in it for us and the big daddy?
Picture this: you're browsing the aisles of your favourite store, trying to find the perfect product to fit your needs. Suddenly, a voice in your head whispers, "You deserve to know where this product came from." That's the power of NFTs in supply chain management.
With NFTs, end-consumers get access to the juicy details of a product's evolution. Raw materials? Check. Companies involved in production? Check. This newfound transparency brings creators and customers closer together, like two peas in a supply chain pod.
But wait, there's more. In sectors like FMCG and pharmaceuticals, where expiry and counterfeiting can cause chaos. Plus, sustainable supply chains mean happy customers, a happy planet, and happy shareholders.
So, if you want to be the cool kid on the ESG block, start weaving sustainable practices into your supply chain. NFTs can help you achieve carbon efficiencies and reduce emissions, making your customers happy and the planet even happier.
It's a no-brainer, really.
Why not sponsor, eh?
What are the use cases?
NFTs can trace products' journey in real-time, improving traceability and inventory management.
NFTs can help eradicate malpractices, improve data sharing, and foster trust between businesses and customers.
NFTs establish a foundation of strategic collaboration by fostering trust between parties.
NFTs assist in establishing a common procurement platform and speeding up the supplier onboarding process.
NFTs create a digital identity for each component, reducing defects and the cost of reverse logistics.
In today's world, supply chain management is a game of efficiency, and NFTs are the MVPs. With their immutable and transparent nature, NFTs offer a level of traceability that would make Sherlock Holmes proud. From raw materials to finished products, NFTs provide a transparent trail that makes everyone in the supply chain feel like they're wearing a detective's hat.
But that's not all.
Phygital NFTs take things to the next level by tagging real-world goods with digital records, adding credibility to the products and giving consumers the power to make informed decisions about what they buy. Plus, the granular data provided by NFT-gated procurement and warehousing gives analysts, business owners, and investors insights that would make even the most experienced supply chain experts blush.
Companies like IBM, Microsoft, and SAP, along with scrappy startups, are incorporating blockchain capabilities into their products. Recording transactions on the blockchain can increase transparency and visibility between retailers, suppliers, and distributors. Real-time logging of shipping errors allows for analysis and operational changes, while RFID tags and scanners help trace food borne illnesses back to the exact pallet. It's time to put away the buzzwords and start seeing the practical benefits of blockchain in the supply chain.
With NFTs and digital twin technology, payments and settlements can be automated, making finance teams' lives easier and freeing up time for more important things, like catching up on their favourite Netflix show. Plus, real-time tracking helps stakeholders borrow working capital with ease and enables supply chain managers to swoop in and save the day when things get messy.
Numbers on the chart, who’s gonna hit the dart?
Let me hit you with some cold, hard facts. Did you know that almost half of all businesses have absolutely no idea what's happening in their supply chain? That's right, a whopping 49% are completely in the dark due to a lack of visibility. It's like they're stumbling around in the dark, hoping they don't trip over anything important.
And speaking of important things, let's talk about counterfeiting. In 2018, global brands lost a mind-boggling $232 Billion due to fake goods. That's more than some countries' entire GDP! And in the pharmaceutical industry, the counterfeit market is estimated to be worth nearly $200 Billion per year.
That's a lot of fake pills, folks.
As supply chain leaders grapple with issues of food waste, quality control, and logistics, one question looms large: how can we make sure that consumers have more transparency and control over the food they eat? With nearly 40% of the US food supply wasted every year, it's clear that something needs to change. But with the help of blockchain technology and other innovations, we may be able to create a more efficient and sustainable food supply chain. Imagine being able to trace the exact origin of your produce, or quickly pinpoint the source of a food borne illness outbreak. The potential benefits are enormous, especially in a market that's set to reach $218.89 Billion by 2026. It's time to start thinking outside the box and exploring new solutions to old problems.
So if you're in the business of making and selling stuff, it's time to wake up and smell the coffee. The supply chain is no joke, and the consequences of ignoring it can be devastating. But fear not, because blockchain and NFTs are here to save the day. With their superpowers of traceability and transparency, they can help you keep an eye on your products every step of the way. Say goodbye to counterfeiters and hello to peace of mind.
Supply chains must become customer-centric, demand-driven and automated.
What are the challenges?
Cybersecurity threats and online fraud - major headaches for NFTs
Non-fungible tokens, but fraudsters can still duplicate them
Con artists have mastered the automotive supply chain ecosystem
Implementing NFTs is a costly and time-consuming process
Not every company in the supply chain is equipped to adopt NFTs
It seems that the trust and resistance to change within the supply chain industry are major roadblocks for the adoption of new technologies such as digital twins and blockchain. While the benefits of these technologies cannot be overstated, it will take a concerted effort from all stakeholders to implement them successfully.
The cost of entry for integrating blockchain technology into supply chain management is relatively low. While some initial development work may be required, companies should not see any prohibitive costs to becoming a reporting member on a network managed by a custodian. Different business models could apply, such as a per-unit fee, which could make using the network quite cheap for members, while the custodian would be profitable over time due to network traffic.
However, some analysts notes that the biggest challenge to adoption may be getting everyone to agree to use it. The transparency and visibility that blockchain offers could make some parties uncomfortable, as all stops in a supply chain would have their data shared with everyone else. This could shine a light on gaps or problems in the supply chain and reveal who is responsible for them, which may not be welcomed by some parties.
In countries where corruption is rampant, introducing new systems could be met with resistance from various stakeholders who benefit from the status quo. However, a top-down approach from governments and regulators mandating better traceability, combined with a bottom-up approach where firms work with stakeholders on the ground, could help overcome these challenges.
The potential benefits of implementing these technologies are enormous, from reducing food waste to increasing transparency and traceability in the supply chain. It is up to the industry to come together and find solutions that work for everyone, ensuring that we can continue to deliver goods and services to consumers efficiently and sustainably.
TTD Week That Was 📆
The week of Ethereum upgrade, crypto charge on the charts and Elon Musk musings.
Saturday: Bitter Twitter 😞 Forever Musk 🤤
Friday: Shapella is a hit?🏌️
Thursday: FTX 2.0? 👀
Wednesday: CryptoGPT. Deal with it 🤯
Tuesday: Crypto on steroids 💉
Monday: The Paxful disaster 🪓
TTD Week In Funding 💰
Sei Labs $30 Million. Blockchain Layer 1 for optimising DeFi and trading apps with a superior user experience, enhanced performance, and scalability.
RSS3 $10 Million. Bridge between blockchain technology and AI, search engines and social media. Web3-centric decentralised feed file protocol.
Lore $4 Million. Social network and a co-ownership platform for Web3 creator communities and game guilds to co-own NFTs.
Opside $4 Million. ZK-rollups for developers to deploy their applications on Opside layer 3 without the need to maintain any infrastructure.
Huddle01 $2.8 Million. Decentralised video conferencing and real-time communication platform for wallets, dApps, DAOs and users for free.
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