With the onset of globalization, supply chains are becoming more complicated and fragmented. The manufacturing process has become infinitely more complex than a simple assembly line.
Now that manufacturers are outsourcing more work to suppliers across the globe and are managing second and third-tier suppliers, it has become difficult to track, trace and monitor production.
As more parties are involved, companies have less access to information, and therefore less control.
In fact, the supply chain’s lack of transparency is made worse in an outsized manner due to all kinds of self-interested considerations and underground dealings along the way.
Companies are struggling to have a clear overview on their supply chains. This exposes them to risks such as fraud, code of conduct violations, and more.
Linfinity believes that by bringing the supply chain onto blockchain, these issues can be fixed.
Anndy Lian, CEO of Linfinity, says, “Linfinity has a vision of tracking each consumer product at every step along the way, from raw materials to recycling. It makes use of the immutability of data in the blockchain to ensure that data is reliable.”
There are three main longstanding problems with the supply chain that Linfinity aims to address.
Asymmetry of information
Every stakeholder has to trust one another in their willingness to communicate true information, but blockchain potentially eliminates the need for that. Sharing a unique blockchain across the different stakeholders of the supply chain will ensure that wares are authentic and have been properly handled, thus preventing potential fraud and making information accessible.
Lack of traceability
Modern supply chains are multi-tiered and geographically fragmented. For supply chains where the various parties are not known or trusted, blockchain technology can add transparency and traceability. Every stage that the product goes through can be recorded in real time onto the blockchain.
Improving traceability also adds value by mitigating the high costs of problems such as recalls, reputational damage caused by fakes, or the loss of revenue from black-or grey-market products
Difficulty in obtaining complete data
Accurately tracking an entire supply chain from raw material extraction to a product ready to be sold to a retail customer is currently quite a feat. With the addition of blockchain, supply chains can be integrated end-to-end and there can be continuity in the provision of information.
Using cutting edge technology to revolutionize the supply chain
So, the humble supply chain appears to take a back seat when it comes to consumer products. But in this day and age, every beautifully packaged final product ready to leave the shelves probably went through the dirt and grime of the supply chain.
It is the precarious journey among processing plants and assembling factories across continents; the result of businesses’ tireless pursuit for what is cheaper, faster, and better.
Linfinity aims to combine leading technologies such as IoT, Big Data, edge computing, and machine learning to develop more application scenarios for blockchain.
“We have a good combination of technologies, and this helps reduce human error for us,” Lian says.
Under Linfinity’s direction, the supply chain will become more customer-oriented, dynamic, and flexible. Geographical distances and long-term partnerships will see their importance diminished.
More valuable together: data has more value when integrated and analysed
On the basis of data accumulation, Linfinity plans to use AI and real time analysis to magnify the value of data. Hence, it will be able to provide novel value-add services such as smart energy monitoring, smart sales monitoring, and predictive maintenance. This will help Linfinity to close the loop of data collection, integration, analysis, and application.
In the era of Big Data, data protection and data privacy in transaction processes and prevention of malicious data duplication are important issues. Linfinity solves the privacy problem by analyzing the data in a distributed manner and only presenting the outcome. Transactions of data have now turned into transactions of the right to use data.
In addition, by using blockchain’s reward mechanism, businesses in the industry will be encouraged to share resources under a safe and reliable system, increasing the industry’s efficiency.
The path forward
After Linfinity’s supply chain platform is established, it plans to prioritize focusing on alcohol, cigarettes, and farm produces, especially organic farm produce.
It needs to be noted that Linfinity’s blockchain technology is still at an experimental stage. It is currently exploring issues such as safety and cost.
But the trend of moving the supply chain onto blockchain is unstoppable. Businesses need to pay attention as it has the potential to lower purchasing risks and management costs while increasing the engagement of stakeholders.
If you are a consumer who yearns for cheaper consumer goods and not having to worry about fakes, you have all the more reason to pay attention too.