Blockchain is a latest technology being used globally in most sectors of the economy to boost output, WealthPK reported.
After blockchain’s successful use in the banking sector, Pakistan has an excellent opportunity to benefit from this technology in improving the supply chain management as well. Blockchain is a decentralised database which helps in storing digital records or shared ledgers of all events. Participating entities connected with the blockchain can share the records and ledgers.
There are a number of technological features associated with blockchain technology, including high transparency, traceability, and trustworthiness. It can be used to improve the supply chain industry’s efficiency and competitiveness and store logistics information. The technology helps in safeguarding logistics information, preventing it from being distorted, and ensuring its authenticity.
Supply chain companies are incorporating blockchain technology into their operations because it allows them to speed up processes, lower transaction costs, and exchange data in a more secure and reliable manner without involving third parties. Across the globe, companies such as IBM, FedEx, Wall-Mart, Ford and UPS are embracing this technology. A study by Cointelegraph Consulting, a leading publication for blockchain and cryptocurrency news, and Swiss enterprise blockchain firm Insolar, has found that blockchain technology can reduce supply chain-related costs by 0.4% to 0.8%. Use of blockchain technology has helped reduce logistics costs by $450 billion in Western Europe.
As the world becomes more globalised and firms continue to ship increased amounts of raw material and products, they will heavily rely on blockchain technologies to ensure that supply chains are not clogged. The time has also come for Pakistan to embrace this innovative technology to improve the performance of economy.
Pakistan faced petrol, wheat and sugar crises in the recent past due to mismanagement and the inability to have a precise information about demand-supply situation. To avoid such scenarios in future, blockchain technology can help develop a better supply chain system that is transparent and unalterable. It will provide real-time data on demand and supply and help the government maintain stocks and make arrangements to meet the country’s future demands. In this regard, the government should develop trade policies and strategic frameworks aligned with emerging technologies. Blockchain technology would allow Pakistan’s supply chain to operate more smoothly since there would be fewer restrictions, shorter lead times, fewer redundancies, fewer delays, and less red tape.
An efficient supply chain network will enable Pakistani businesses to attract global attention, leading to increased economic activity. Bringing blockchain technology into Pakistan’s supply chain management system will require more research and regulations. However, industries that rely heavily on a strong supply chain network will undoubtedly benefit from this innovation. Enterprises in Pakistan will certainly have to deploy blockchain technology to accelerate the processes and ensure that commercial activities are carried out both domestically and internationally in a timely and effective manner.—INP
