“ If we need to bring in specialist knowledge , then we have the entire Global organisation of KPMG , and at short notice , a multitude of subject matter experts are available to assist us in our projects ”
KPMG
Six key points outline how blockchain helps to optimise supply chains :
“ If we need to bring in specialist knowledge , then we have the entire Global organisation of KPMG , and at short notice , a multitude of subject matter experts are available to assist us in our projects ”
DIRK DISTELRATH DIRECTOR , CONSULTING DIGITAL COMPLIANCE SERVICES , KPMG
The advantages offered by blockchain or distributed ledger technology ( DLT ) are nowhere better demonstrated than in complex supply chains . It enables a solution that can scale rapidly and securely because only authorised partners can have access . Shared ledgers are updated till the transaction is validated by all participants . Once the record of an event , a “ block ” is approved , it is automatically created across the ledgers for all participants in that channel , creating a shared trusted reality . Once approved , nobody can remove a block , so every transaction is permanently recorded , ensuring a high level of trust among all participants .
1 . Continuous transparency for the entire supply chain .
2 . Trust through technology and distributed control through consensus algorithms .
3 . Authenticated delivery information in real-time .
4 . Acceleration and efficiency through automation .
5 . Decentralized network reduces systematic risk .
6 . Security and immutability through cryptography .
A highly topical example is found in the way that over the course of 2021 , it became necessary to set up end-toend supply chains to deliver vaccines . For obvious reasons , these had to be secure , highly efficient , and above all , quick – traditional negotiation and contracting routes would not suffice . The complexity of the problem is adequately demonstrated in the graphic below .
Blockchain provides an important new approach to further improve trust in the biopharmaceutical supply chain . This sector is ideal for technology . An audit trail can track drugs within the supply chain , track exactly what data has been shared and who has accessed it , without revealing the data itself , says Distelrath . “ The data chain has no limits . A key feature of blockchain technology is a “ smart contract ”, which is a self-executing protocol that enforces a previously agreed arrangement . But the blockchain can only develop its potential if its perceived advantage also meets company-specific requirements or challenges ”, he warns . On its own , the
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