Top 5 Blockchain Projects in Supply Chain Management 2023

For downstream entities like retailers, their supply chain can be kind of like a Black box. They often struggle to keep track of the origins of their goods, as well as how many links their supply chain actually has. These are just some examples of the many problems that the current supply chain operates with.

Blockchain projects may offer unprecedented solutions to the problems of the supply chain and make it more transparent, verifiable, and trustless. In this article, we will inspect how exactly could blockchain help us manage our supply chains, as well as the 5 most advanced solutions that are doing so.

Why Use Blockchain in Supply Chain Management?

As the market gets increasingly more globalized, the supply chains often get very complex and cluttered. Out of this problem, there emerges a clear need for bringing structure and transparency into supply chains. There are several reasons why blockchain systems are very much suitable for this use case, for example, immutability, security, and increased speed.

On top of that blockchain, systems can easily leverage economic incentives to promote honest behavior and actions, which would be much more difficult to implement through traditional finance.

Let's have a look on some specific aspects where the blockchain technology can make supply chains better:

1. Enhanced Traceability and Verifiability - The backbone of any supply chain is traceability. With Blockchain's immutable and decentralized nature, every product can be tracked from its origin to the consumer. This level of transparency is crucial in sectors such as pharmaceuticals and food, where verifying authenticity and ensuring safety is paramount.
2. Increased Efficiency - Blockchain can eliminate the need for paper-based systems, streamlining processes through real-time, secure data sharing. The technology also minimizes errors and reduces time spent on goods transfer, document processing, and authentication.
3. Improved Security - Blockchain’s distributed ledger provides a robust security framework, reducing the risk of fraud, theft, and unauthorized activity. Every transaction is encrypted and linked to the previous one, making tampering virtually impossible.
4. Supplier Payments -   Payments in the supply chain often involve multiple parties, currencies, and financial institutions, leading to delays, errors, and added costs. Blockchain, however, offers an efficient and cost-effective solution. It enables real-time, cross-border transactions that can significantly expedite payment processes and reduce transaction costs. With smart contracts, automated payments can be triggered once certain predefined conditions are met, enhancing trust and reliability in supplier relationships.

Top 5 Available Solutions

VeChain

VeChain is a blockchain service that facilitates a whole suite of products ranging from general supply chain management to physical NFC and RFID tags. By connecting IoT (Internet of Things) to blockchain, VeChain is able to digitalize and streamline major supply processes.

The supply chain management software is highly customizable and can be optimized for over 300+ industries, such as food and beverage, fashion, or agriculture. VeChain uses two tokens $VET and $VTHO. $VET is used as a value storage and transfer medium, whereas $VTHO is used for chain maintenance, such as paying gas fees.

OriginTrail

OriginTrail presents a unique combination of blockchain technology and knowledge graphs. They tap into multiple physical-world industries, including supply chain management. OriginTrail uses the concept of “Knowledge Assets”, which helps supply chain participants share their data in a tamper-proof and decentralized manner. 

The traceable and verifiable data are stored on the OriginTrail blockchain running on Polkadot, where anyone can see them. Using this method various types of data can be stored and secured, ranging from sustainability claims, transparent chain of custody, and shipment risk assessment to verifiable insurance claims.

Amazon Quantum Ledger Database (QLDB)

Amazon Quantum Ledger Database (Amazon QLDB), although abstaining from the “blockchain” naming is a blockchain-like service creating semi-custom solutions for enterprises. It allows companies to create a fully managed ledger database (basically blockchain), which offers a transparent, immutable, and cryptographically verifiable transaction history. 

In the context of supply chain management, Amazon QLDB can provide an invaluable service, tracking the movement of items across the network. Its inherent features of transparency and immutability enhance traceability, ensuring the authenticity and safety of products, thus creating more efficient and trustworthy supply chains.

EverLedger

EverLedger has developed a blockchain application to track the movement of raw materials all the way to sales. Their first effort was the tracking of diamond supply in Australia to provide proof of their legitimacy and origin. 

EverLedger is now expanding and adding more raw materials to the tracking system, such as cobalt. They provide authenticity proofs, timestamps, and origin tracking on a private permissioned blockchain.

Morpheus.network

Morpheus.network is a B2B blockchain solution for supply chain management, which works with the majority of blockchain infrastructures, such as Ethereum or BNB Chain. They offer an automated smart contract workflow for tracking supplies all the way from manufacturing to retail sales. 

Payments are also automated to ensure a smooth transition between the individual supply chain links and can be facilitated both in crypto or fiat. Morpheus.network is compatible with established transformation services like Fedex, which lets it build on top of its identification and tracking systems while securing data on-chain.

Future Prospects

Blockchain technology offers solutions to traditional supply chain issues, notably eliminating paper documents and enabling a transparent, trackable journey for goods from source to delivery. This unalterable, decentralized record of transactions paves the way for greater efficiency and accountability in supply chains.

However, realizing these benefits is not without challenges. The technological expertise required for blockchain implementation, coupled with the need to navigate a diverse and evolving landscape of international regulations, hinders rapid adoption. Hence, while blockchain is likely to gradually replace traditional supply chain processes, this transition is expected to be a measured evolution rather than an overnight revolution.