The retail and consumer packaged goods (CPG) industry is well placed to take advantage of Blockchain technology, according to a new Deloitte report.
Steve Larke, Technology Consulting Partner at Deloitte, comments: “Retailers and consumer businesses are constantly being told that blockchain is the next big thing. However, it is crucial for decision makers to understand which areas of the value chain will benefit most from the new technology, and how easy it is to implement. It is technology that has the ability to track, trace, and authenticate products, record contracts and transactions and guarantee the movement of information. Significantly, the benefits can then be passed on to the consumer in the form of savings, increased trust, and safer, higher-quality products.”
A solution which would allow businesses to store information about their suppliers and seamlessly execute payments and contracts at the point of fulfilment, has been identified as the number one opportunity for businesses. Other blockchain cases are harder to implement but could equally carry huge value opportunities, for example, a ‘Connected Supply Chain’ could provide a seamless end-to-end ledger from manufacturing to fulfilment, whilst an ‘Authenticity & Provenance’ solution could verify a product’s genuineness, protecting businesses and consumers from counterfeiting.
Larke comments: “Trialling projects and exploring opportunities will be important in order to determine the complexity of implementation. Projects that offer greater value relative to investment in the short-term will obviously be more attractive to business decision makers. Without question, there are some areas that will see rapid value gains based on relatively simple implementation. Blockchain technology is expected to achieve widespread, mainstream adoption sooner rather than later. Retail and CPG businesses need to act now and plan for future blockchain adoption, or risk being left in the dust.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.