Challenges of supply chains in consumer goods in the time of recession
Against the backdrop of economic uncertainty in the US and growing concerns about the impact of coronavirus on the world economy, executives in the consumer products sector in 2020 are facing the pressure of having to invest in new technologies to match the growing competition and thrive in a potential downturn. During these challenging times of recession, there is a pressing need to rethink business strategies for better operational efficiency. Step one to leveraging intelligent supply chains is to start collecting quality operational data to get access to actionable insights to drive predictive supply chain management across the enterprise. But the reality is that all solutions for data integrity available on the market now are barely adequate, they are typically unjustifiably expensive and very slow to generate visible returns. That’s why most forays into digital transformation keep failing with only fragmented results and failures to stay within the budgets.
Luckily, with the promise of distributed ledger technology, we finally have a way to upgrade without breaking the bank. Before we go ahead and examine it, let’s take a closer look at the existing challenges in the consumer goods industry that call for optimization of overall operational efficiency.
- Increased automation is driving the speed of supply chains. And along with automation comes constant flows of newly generated data — from machines’ feedback on warehouse production capacities to constant updates on delivery statuses.
2. The risk of counterfeiting is high as ever. With the growing number of parties and intermediaries, supply chains in the consumer products industry now span over multiple stages of production and geographical locations. At the same time, on the consumer side, there are no reliable means to verify the actual value and origin of the goods.
3. Growing customer expectations. Recent online trends have led to growing service expectations combined with much more detailed and customized orders. The online-enabled transparency and easy access to a multitude of options regarding where to shop and what to buy also drives the competition of supply chains.
All of the above calls for novel tools for data integrity enterprise-wide that can handle the growing complexities of global markets. Hence, the need to have a robust and agile system for streamlining the data accumulated along the way becomes very evident.
Step One: get credible operations data
No wonder that developing digital analytics capabilities in the supply chain has recently become a top priority for three-fourths of executives. And collecting data that all the stakeholders can be 100% confident about is just the first step on a path to surfacing the insights to tap the potential of advanced forecasting approaches, such as predictive analytics of external (e.g., market trends, weather, school vacation, construction indices) and internal (e.g. demand) data.
But how do we make sure that the data we’re collecting can be trusted? With DLT’s capability to deliver a tamper-proof record of transactions validated by all the participants of the supply chain, there’s a robust way to verify the integrity and immutability of operational data collected both from the human and machine inputs. And while DLT cannot guarantee against the veracity of data inputs, it is exceptionally good at holding all sorts of entities — whether it be people or machines — responsible for data commitments. As a result, we get a resilient tool for tracking stakeholders’ responsibilities all along the supply chain.
Here’s a broader outlook of the benefits that blockchain holds for the consumer goods industry:
- Supply chain integrity: With a blockchain solution in place, location-specific information regarding the state of the product or commodities moving down the supply chain is registered on the Blockchain ledger. The smart contract functionality of the Blockchain Solution defines, as well as automatically enforces the contract terms and conditions in a secure and real-time environment thereby ensuring greater supply chain integrity.
- Increased transparency: Blockchain enables the tracking of the products moving within the supply chain ecosystem from the point of manufacturing to the end-consumers. This ensures the prevention of theft and counterfeiting. Eventually, blockchain-enabled supply chains will allow to resolve disputes faster and do smart contract validation to eliminate the discrepancies.
- Digital identities for goods ownership: With a blockchain-based solution in place, manufacturers can leverage the digital identity tools for ownership and packaging. This ensures the protection of physical property and packaging, in order to boost highly valuable parts along the logistics supply chain.
Trust the data you collect with Taraxa
However, considering financial and operational overheads for deploying a completely new technology stack across the enterprise, this kind of optimization usually doesn’t come cheap. Taraxa’s immutable trust verifying platform will finally deliver the much-needed relief that is both efficient and affordable to bring your supply chain management one step closer to visibility and agility by connecting fragmented data. Here’s how you can build trust and traceability with Taraxa:
- Ensure that stakeholders only store data that has already been validated by all participants in their supply chain.
- Remove the need for data to be re-checked, streamlining the business’ data management process.
- Bypass duplication and waste of paper-based data management systems with efficient, cost-effective processes that deliver greater certainty in the integrity of data.
To learn more about how Taraxa can help you meet data quality challenges across your supply chain, reach out to firstname.lastname@example.org
International Monetary Fund, World Economic Outlook, October 2019: Global Manufacturing Downturn, Rising Trade Barriers, October 2019.