It is currently crucial to find solutions to the problems of the global economy after the pandemic. For this reason, experts from all over the world have pleaded to be “out of the box” to achieve this. Thanks to this, the World Economic Forum has expressed that blockchain technology and digitization can support supply chains in times of crisis.
The World Economic Forum speaks
Ziyang Fan (Head of Digital Commerce at WEF) and Rebecca Liao (Executive Vice President of Skuchain) made some comments on the crisis. The publication said that this pandemic has forced many companies to deal with the unexpected fragility of their supply chains.
In a supply chain, companies usually only know the history of the suppliers in their area. So you have no way of knowing whether the higher ones are affected by crises until they are affected.
With this in mind, Fan and Liao wrote that blockchain technology would create transparency without compromising the company’s privacy. A properly constructed blockchain system would give relevant parties broader access. They could also get supply chain data from their upstream suppliers.
Benefits of using blockchain for transparency in supply chains
Blockchain technology ensured that performance and risk data could be authentically shared with the other parties to a transaction.
This data supports all financial transactions within a supply chain and can be known using blockchain even if there is no direct relationship between the members of this chain.
Record digitization is Fan and Liao’s other partial solution to this crisis. For one, digitized supply chain records are much more accessible than paper copies. The latter is even more necessary these days when there are closed offices and orders to stay at home.
Finally, they came to the conclusion that the first digital companies and the governments that use them deal with supply chain disruptions much better than those without.
At the moment, it is not just the World Economic Forum that has spoken about the opportunities this pandemic opens up for innovations and the use of alternatives such as blockchain technology. Many analysts and economists are considering alternatives in this area.