Top 10 Ways Internet Of Things And Blockchain Strengthen Supply Chains - PowerPoint PPT Presentation

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Top 10 Ways Internet Of Things And Blockchain Strengthen Supply Chains


The majority of enterprises are prioritizing their blockchain pilots that concentrate on supply chains improvements (53%) and the Internet of Things (51%) according to Deloitte’s latest blockchain – PowerPoint PPT presentation

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Title: Top 10 Ways Internet Of Things And Blockchain Strengthen Supply Chains

Top 10 Ways Internet Of Things And Blockchain
Strengthen Supply Chains
  • The majority of enterprises are prioritizing
    their blockchain pilots that concentrate on
    supply chains improvements (53) and the Internet
    of Things (51) according to Deloittes latest
    blockchain survey.
  • By 2023, blockchain will support the global
    movement and tracking of 2T of goods and
    services annually based on a recent Gartner
  • By 2020, Discrete Manufacturing, Transportation
    Logistics and Utilities industries are projected
    to spend 40B each on IoT platforms, systems, and
  • The Supply Chain Management enterprise software
    market is growing from 12.2B in 2017 to 20.4B
    in 2022, achieving a 10.7 Compound Annual Growth
    Rate (CAGR) according to Gartners latest market
  • Of the many blockchain and IoT Proof of Concept
    (POC) pilots running today, track-and-trace shows
    the most significant potential of moving into

Combining blockchains distributed ledger
framework with the Internet of Things (IoT)
proven real-time monitoring and tracking
capability is redefining supply chains.
Blockchain shows potential for increasing the
speed, scale, and visibility of supply chains,
eliminating counterfeit-goods transactions while
also improving batching, routing and inventory
control. Blockchains shared, distributed ledger
architecture is becoming a growth catalyst for
IoTs adoption and commercial use in
Blockchain and IoT are defining the future of
supply chains based on the initial success of
Proof of Concept (POC) pilots focused on the
logistics, storage and track-and-trace areas of
supply chains across manufacturing. Supply-chain
centric pilots are the most popular today, with
enterprises looking at how they can get more
value out of IoT using blockchain. One CIO told
me recently his company deliberately spins up
several POCs at once, adding theyre our proving
grounds, were pushing blockchain and IoTs
limits to see if they can solve our most
challenging supply chain problems and were
learning a tremendous amount. The senior
management team at the manufacturer says the
pilots are worth it if they can find a way to
increase inventory turns just 10 using
blockchain and IoT. Theyre also running Proof of
Concept pilots to optimize batching, routing and
delivery of goods, reduce fraud costs, and
increase track-and-trace accuracy and speed. Of
the many pilots in progress, track-and-trace
shows the greatest potential to move into
production today.
The following are the top 10 ways IoT and
blockchain are defining the future of supply
Combining IoTs real-time monitoring support with
blockchains shared distributed ledger
strengthens track-and-trace accuracy and scale,
leading to improvements across supply chains.
Improving track-and-trace reduces the need for
buffer stock by providing real-time visibility of
inventory levels and shipments. Urgent orders can
also be expedited and rerouted, minimizing
disruptions to production schedules and customer
shipments. The combination of blockchain and IoT
sensors is showing potential to revolutionize
food supply chains, where sensors are used to
track freshness, quality, and safety of
perishable foods. The multiplicative effects of
combining IoT and blockchain to improve
track-and-traceability are shown in the context
of the following table from the Boston Consulting
Group. Please click on the graphic to expand for
easier reading.
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Improving inventory management and reducing bank
fees for letters of credit by combining
blockchain and IoT show potential to deliver cost
A recent study by Boston Consulting Group,
Pairing Blockchain with IoT to Cut Supply Chain
Costs, completed a hypothetical analysis of how
much a 1B electronics equipment company
implementing blockchain-as-a-service, a
decentralized track-and-trace application, and 30
nodes that share among key supply chain
stakeholders could save. The study found that the
electronics equipment company could save up to
6M a year or .6 of annual sales. A summary of
the business case is shown here
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Combining blockchain and IoT is providing the
pharmaceutical and healthcare industry with
stronger serialization techniques, reducing
counterfeit drugs and medical products.
Pharmaceutical serialization is the process of
assigning a unique identity (e.g., a serial
number) to each sealable unit, which is then
linked to critical information about the
products origin, batch number, and expiration
date. According to the World Health Organization
(WHO) approximately 1 million people each year
die from counterfeit drugs, 50 of pharmaceutical
products sold through rogue websites are
considered fake, and up to 30 of pharmaceutical
products sold in emerging markets are counterfeit
according to a recent study by DHL Research. DHL
and Accenture are finalizing a blockchain-based
track-and-trace serialization prototype
comprising a global network of nodes across six
geographies. The system comprehensively documents
each step that a pharmaceutical product takes on
its way to the store shelf and eventually the
consumer. The following graphic illustrates the
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Improving distribution and logistics, tracking
asset maintenance, improving product quality,
preventing counterfeit products and enabling
digital marketplaces are the use cases Capgemini
predicts blockchain will have the greatest impact.
IoTs potential contribution in each of these
five use case areas continues to accelerate as
real-time monitoring dominates manufacturing.
Tracking provenace, contracts management, digital
threads, and trade financing also show potential
for high adoption. The following graphic
illustrates blockchain use cases in the supply
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Combining blockchain and IoT is enabling
manufacturers to pursue and excel at digital twin
initiatives across their value chains.
A digital twin is a dynamic, digital
representation of a physical asset which enables
companies to track its past, current and future
performance throughout the assets lifecycle. The
asset, for example, a vehicle or spare part,
sends performance data and events directly to its
digital twin, even as it moves from the hands of
the manufacturer to the dealer and ultimately the
new owner. Blockchain can be used to securely
document everything related to the asset and IoT
provides the real-time monitoring and updates.
Microsoft and VISEO are partnering to use
blockchain to connect each new vehicles
maintenance events to the vehicles digital twin.
The graphic below illustrates how digital twins
streamline additive manufacturing.
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54 of suppliers and 51 of customers are
expecting the organizations they do business with
to take a leadership position on blockchain and
The majority of suppliers and customers expect
the manufacturers, suppliers, and vendors they do
business with to take a leadership position on
these two emerging technologies and define a
vision with them in it. Deloittes excellent
study, Breaking Blockchain Open, Deloittes 2018
Global Blockchain Survey, provides insights into
how supplier and customer expectations are a
factor in driving blockchain and IoT adoption,
further helping to shape the future of supply
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Consumer products and manufacturing lead adoption
of blockchain today, followed by life sciences
according to the latest Deloitte estimates.
IoT adoption is flourishing in manufacturing,
transportation logistics and utilities. By
2020, each of these industries is projected to
spend 40B each on IoT platforms, systems, and
services. The following graphic compares
blockchain adoption levels by industry. Given how
dependent manufacturers are on supply chains, the
high adoption rates for blockchain and IoT make
sense. Please click on the graphic to expand for
easier reading.
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32 of enterprises are adopting blockchain to
gain greater speed compared to existing systems,
and 28 believe blockchain will open up new
business models and revenue sources.
The majority of manufacturers, transportation
logistics and utilities companies have real-time
monitoring running on their shop floors and
across their production facilities today. Many
are transitioning from Wi-Fi enabled monitoring
to IoT, which creates a real-time data stream
that blockchain ledgers categorize and track to
provide greater track-and-trace speed and
accuracy. A recent Capgemini survey found that
76 of manufacturers also plan to have a
product-as-a-service strategy to drive revenue in
less than two years.
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Blockchain has the potential to deliver between
80B and 110B in value across seven strategic
financial sectors when supported by IoT,
redefining their supply chains in the process.
McKinsey completed an extensive analysis of over
60 viable use case for blockchain in financial
services where IoT would provide greater
visibility across transactions. The combination
of technologies has the potential to deliver over
100B in value.
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Reducing product waste and perishable foods
product margins while increasing traceability is
attainable by combining blockchain and IoT.
IBMs Food Trust uses blockchain technology to
create greater accountability, traceability, and
visibility in supply chains. Its the only
consortium of its kind that connects growers,
processors, distributors, and retailers through a
permissioned, permanent and shared record of food
system data. Partners include Carrefour, Dole,
Driscolls, Golden State Foods, McCormick and
Co., McLane Co., Nestlé, ShopRite parent Wakefern
Food Corp., grocery group purchasing
organization Topco Associates The Kroger Co.,
Tyson Foods, Unilever and Walmart. An example of
the Food Trusts traceability application is
shown below
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