For most companies, supply chains consist of numerous partners that manufacture products in siloed environments. When you fail to provide these parties with the necessary visibility, however, it becomes more difficult to adjust to customer demands and maintain integrity.
Because of the number of supply chain variables at play, many companies struggle to streamline this disorganization — particularly smaller businesses with limited resources. There was no “silver bullet” solution for these issues until recently, which left companies with two options: cobble together several inefficient tactics to manage everything, or simply hope for the best and expect the worst. Common sense indicates that neither of those is an ideal approach.
Thankfully, businesses now have a viable alternative: blockchain governance. While blockchain is primarily known as the tech behind bitcoin and various other cryptocurrencies, the potential applications of blockchain technology far exceed the world of finance.
Because its networks are decentralized and contain severely low fault tolerance, blockchain can track, record, and share data between several parties in real time. The result is a solution perfectly suited to follow a product at every stage of production and enable companies to make smarter decisions surrounding it.
Responsible sourcing, sustainability, and transparent business practices are becoming prominent elements of consumer buying decisions, but these values often clash with the realities of a convoluted supply chain. Blockchain governance, however, offers a new way to satisfy customer demands and create more sustainable business practices simultaneously.
Blockchain Is Better for Business Wellness
Blockchain governance is distinctive in its ability to inject transparency and visibility into every step of a product’s life cycle. From production to consumer velocity, blockchain can monitor everything. This increased clarity makes it easier for producers, farmers, and manufacturers to know exactly what’s required of them every step of the way.
Industries whose quality might regress through several phases of development have welcomed this enhanced accountability with open arms. Take, for instance, textile and apparel brands. Providers often suffer breakdowns in quality and values because of the responsibility that accompanies handling the various parts of a supply chain. Because there’s no established way to govern or monitor every phase of a supply chain, it’s easy for integrity to fall by the wayside.
Quality concerns aren’t the only potential miscues that stem from poor supply chain management, though. Look no further than the notorious case of Foxconn, best known for its role in assembling Apple products. Back in 2010, undercover reporters exposed the company’s poor working conditions — not only were employees underpaid and overworked, but 14 workers in its Shenzhen, China-based factory took their own lives.
While Apple pledged to improve the oversight of its manufacturing partners, Foxconn’s reputation as an unhealthy working environment persists. Another employee committed suicide on factory grounds this past year; rather than fix the root problems, the company has launched a three-phase strategy to automate all operations at its factories.
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