The use of blockchain for supply chain processes sees exciting applications that can improve package tracking, consumer awareness and brand protection from counterfeit production.
Supply chains are getting more complex as the number of players involved is increasing. Tracking, communications, contracts, and payments are becoming difficult to be managed. Moreover, businesses have to also focus on their consumers while handling their operations. The use of blockchain for the supply chain can help streamline the processes involved, including product packaging.
USING BLOCKCHAIN FOR SUPPLY CHAIN PROCESSES TO BENEFIT PRODUCT PACKAGING
Using blockchain for supply chain, including product packaging, enhances the processes and reduces the shortcomings. Here are three ways blockchain is benefitting product packaging operations.
Enhanced Tracking and Tracing
With blockchain, customers and businesses can track products right from their origin. Blockchain also enables a quick and easy way for accessing the information with something as simple as having a QR code on the packaging. It forgoes the need to have long information displayed on the packaging boxes.
Since the data on a blockchain is immutable, customers can be assured of the authenticity of the information. Moreover, businesses can trace issues easily in the supply chain, such as recalls.
Thus, both businesses and customers get enhanced tracking and tracing with blockchain for supply chain. Many companies have already adopted blockchain for the same. For example, Bumble Bee Foods lets users trace information about their yellowfin tuna fish, from when it is caught to the availability on store shelves, using blockchain technology.
Reduced Instances of Counterfeiting
As blockchain enhances tracking, tracing and transparency, the instances of counterfeiting are reduced automatically. It ensures businesses and customers that they are getting the right product. For example, a jewelry business can utilize blockchain to eliminate conflict minerals.
The diamond leader DeBeers is already using blockchain for the same purpose and also eliminating child labor practices from its supply chain. Similarly, customers too can verify the authenticity of their ordered products using blockchain technology. Ardnamurchan distillery has incorporated a QR code on their single-malt scotch bottle that lets buyers verify its authenticity.
Improved Contracts and Payments
Blockchain enables smart contracts that enhance contract execution, completion and the payment process. The terms and conditions set in a smart contract cannot be changed once set. Moreover, the contract is executed automatically only after meeting the specified conditions. This helps reduce inefficiencies and automates the process.
Similarly, the payment is also made automatically once the contract has been completed. Looking forward, we can see cryptocurrencies being the default payment method for smart contracts executed on blockchains.
The use of blockchain for supply chain operations, including product packaging, enhances its security and accountability. This is just the beginning of the implementation of blockchain in product packaging. There are still yet-imagined use cases of blockchain in this area, and we can see new applications emerging every day as we move closer towards the ‘Internet of Packaging.’
