Blockchain and its potential benefits to the Supply Chain

What is Blockchain?

According to Wikipedia a blockchain is a distributed database that maintains a continuously-growing list of records called blocks. Each block contains a timestamp and a link to a previous block. The data in a block cannot be altered retrospectively.

The first blockchain was conceptualized by Satoshi Nakamoto in 2008 and implemented the following year as a core component of the digital currency bitcoin, where it serves as the public ledger for all transactions. Through the use of a peer-to-peer network and a distributed timestamping server, a blockchain database is managed autonomously.

Think of it like this: If the entire blockchain were the history of banking transactions, an individual bank statement would be a single “block” in the chain. Unlike most banking systems, however, there is no single organization that controls these transactions. It can only be updated through consensus of a majority of participants in the system. In short, blockchain is a record-keeping mechanism that makes it easier and safer for businesses to work together over the internet.

Benefits of Blockchain to the Supply Chain

Many commentators agree that blockchain technology has far greater potential than just supporting a digital currency such as bitcoin. The potential for improvements in the Supply Chain are limitless. Imagine a scenario where every time a product changes hands, the transaction could be documented, creating a permanent history of a product, from manufacture to sale. This could dramatically reduce time delays, added costs, and human error that plague transactions today. The benefits for pharmaceutical manufacturers (all stage product lifecycle track and trace) and OEM’s (product recalls), to name just two industries off hand, are enormous.

According to an article by Jon-Amerin Vorabutra the advantages blockchain technology brings to the supply chain community could be listed as follows:

·         Enhanced Transparency. Documenting a product’s journey across the supply chain reveals its true origin and touchpoints, which increases trust and helps eliminate the bias found in today’s opaque supply chains. Manufacturers can also reduce recalls by sharing logs with OEMs and regulators.

·         Greater Scalability. Virtually any number of participants, accessing from any number of touchpoints, is possible.

·         Better Security. A shared, indelible ledger with codified rules could potentially eliminate the audits required by internal systems and processes. 

·         Increased Innovation. Opportunities abound to create new, specialized uses for the technology as a result of the decentralized architecture.

B2BGateway to attend Natural Products Expo East in Baltimore

B2BGateway, the leading global EDI solution provider will be attending the Natural Products Expo East trade fair which takes place in the Baltimore Convention Center from September 22-24, 2016.

Natural Products Expo East is the East Coast’s Largest natural, organic, and healthy products event with over 22,000 attendees and 1,800 exhibitors. Each year Natural Products Expo East draws top retail buyers from independent stores, natural market chains and big box retailers – all with the mission to find the newest and hottest products shaping the future of the healthy living marketplace. Market categories represented at Expo East include natural and specialty food and beverages, supplements, pet, natural living and beauty. New emerging trends include:

·         Foods and beverages with floral ingredients such as hibiscus, elderflower and chamomile.

·         Coffee fruit, the refreshing and flavorful anti-oxidant rich and anti-inflammatory fruit.

·         Snacks using avocado oil, which has always been GMO free and is paleo friendly.

The majority of large scale box store retailers and natural markets chains require all suppliers to become EDI (Electronic Data Interchange) compliant for the exchange of electronic business documents such as Purchase Orders (EDI 850), Purchase Order Acknowledgements (EDI 855), Advance Shipment Notifications (EDI 856) and Invoices (EDI 856). Suppliers can also use the EDI for seamless communication with their 3PL’s for Warehouse Ship Orders (EDI 940) and Warehouse Ship Advice (EDI 945).

By using B2BGateway’s cloud based EDI solutions the supplier can integrate with all relevant parties in their supply chain. Full integration removes the need for the supplier to re-key data when exchanging electronic business documents with trading partners, leading to greater accuracy, increased labor efficiencies and expediting the order-to-payment cash cycle with customers.

If you would like to meet with the B2BGateway team attending this year’s Natural Products Expo East, please email Sales@B2BGateway.Net