New technologies like blockchain never get a warm welcome unless their potential is understood completely. The advancement and recognition of blockchain have led to the emergence of many technologies like Metaverse, NFT, Web3, etc. Among them, Web3, a new internet technology, started taking several industries including logistics & supply chains to new heights. The incorporation of Web 3.0 into this niche is inevitable due to the shortcomings of Web 2.0.
Further down the line, we will see the potential benefits of Web 3.0 and how it revolutionizes the supply chain and logistics industry.
Web 3.0, the advancement of Web 2.0, is built, operated, and owned by its users rather than large institutions or the government. Web3 is a decentralized and open web with increased utility that gives power to the people.
The operations of the supply chain have become extremely complex owing to its expansion post-pandemic. The supply chain operations include various stages that involve multiple geographical locations, distributors, carriers, etc. These stages need to be processed delicately, and with the limitations of Web 2.0, it is a cumbersome task. So, the evolution of Web 2.0 is mandatory for the efficient management of supply chain operations, and Web 3.0 is the currently viable solution to this dilemma!
The supply chain involves the participation of a diverse group of people who communicate with each other by exchanging data. Inefficient processing of supply chain data will make the niche incompetent in digital transformation. So, accurate and accelerated processing of these data is mandatory for an enhanced and streamlined operation.
Here comes Web3, regarded as the savior of the supply chain industry, which provides a decentralized environment facilitating efficient and secure data sharing.
Web3 unlocks advantages like decentralized data management, efficient tracking, monitoring, and organization of supply chain stages. In short, Web3 is a fusion of AI, Smart contracts, and blockchain that automates and streamlines the complex process involved in supply chain management and logistics. This automated process prevents human errors and saves time, cost, and resources.
Web3 enables seamless storage and accessibility of all the relevant information and document, improving trustworthiness and coordination among all the supply chain participants. In addition, it eliminates paperwork and risk while increasing transparency throughout the supply chain management and logistics mandate.
With Web3, tracking assets from origin to destination is simple since it digitizes physical assets and utilizes distributed ledger to record and validate the transaction. Web 3.0 use blockchain technology that increases visibility among consumers and businesses and reduces counterfeit losses & gray market trading.
The distributed ledger technology also facilitates end-to-end tracking and verifies that the participants meet the outsourced contract manufacturing & delivery guideline. Web3 supply chain amalgamation clearly states who handles the goods and merchandise in the supply chain at a specified time.
Some uber-cool features of incorporating web3 in supply chain and logistics are:
Distributed technology records real-time data of supply chain activities like order placement, production workflow, shipment, payment, and dispatch in a transparent manner. It ensures that all the participants involved in the supply chain management can easily access and track the entire operation.
One of the crucial features of Web3 supply chain management is Identity verification which verifies and validates all the key players. These features enable trust and coordination among all the supply chain players and provide immutable details for all the suppliers with the date and timestamped blocks.
Web3 utilizes blockchain technology with an advanced smart contract that automates complex supply chain tasks like tracking and updating goods stats, payment processing, etc., once the pre-defined instructions are met.
The fusion of Web 3.0 and supply chain & logistic systems provides high-end security and data encryption, fraud identification algorithms, multi-level authentication, permission-less or permissioned chain access, etc.
The incorporation of Web 3.0 into supply chain management keeps a record of all the modifications on order reports, QA reports, authentic certificates, bills of lading (a document that specifies transportation agreements), etc., thanks to blockchain technology.
Web 3.0 system allocates validating powers to specific supply chain participants who verify and validate the entire supply chain and logistic operations & transactions. These authorized validators use approval mechanisms to achieve transaction consensus.
Moreover, Web3 makes the supply chain system tamper-free with its time-stamping & cryptographic features. It allows participants to verify and validate their ownership with e-sign and separate & load all the documents & products in line with the supply chain events with registered supply chain & logistic components.
Here are some advantages of Web 3.0 and how it boosts the logistics & supply chain:
Web3 promotes traceability by digitizing physical assets in the supply chain. It also improves transparency with open data access and traceability by asset tokenization.
Web3 enables participants to effortlessly track and monitor all other parties' activities & transactions. Further, smart contract automates complex workflow, making corporates' work easy.
With a secure distributed ledger system, it is almost impossible to cyber attacks, data breaches, and other malicious activities. Unifying Web3, blockchain and Dapps allows businesses to interact directly with consumers, saving intermediary costs.
The immutable nature of distributed ledger amplifies trust & cooperation by allowing participants to access and view the data without altering it. It also enables businesses to keep a record of their supply chain operations and transaction while allowing them to fulfill their responsibilities.
Product retraction impacts millions of people (involves a global supply chain network) due to replacement expenses, legal fees & missed sales opportunities.
Web 3.0 enables effective recalls by allowing manufacturers easily find defective items with improved product traceability.
For instance, many patients rely on prescribed medicines, and under or over-stocking drugs should be avoided at all costs.
Web 3.0 automates and enhances pharmaceutical reporting by delivering real-time information to manufacturers and stakeholders.
Web3 supply chains use permissioned blockchain to limit risk factors and verify transactions by the authorized supply chain participant. Further, Web 3.0 enhances supply chain activities and enables cooperation among conflicting parties.
Data about the supply chain is audited with hash and timestamp to improve data authentication, and end-users can view the mobility of products and transactions recorded on the ledger.
Whenever a block with a new piece of information gets added to the ledger, it will be updated on the ledger copy of the authorized participant. Key players like manufacturers, suppliers, distributors, etc., use appropriate Dapps to transact and trace data.
Smart contracts automate the complex process and maximize productivity & revenue while minimizing delivery time and man-made mistakes. It can be developed based on digital agreement and real-time data on the ledger enabling it to automate business operations on meeting the specified criteria.
Additionally, smart contracts allow supply chain retailers to cut down brokers, attorneys, or intermediary costs. These features ensure that Web 3.0 enable the supply chain niche to evolve & meet the growing demands of the future retail market.
According to Zippia, only 6% of the firms report complete visibility in their supply chain, and 22% have a proactive supply chain network. Inefficient supply chain data exchanges due to distrust will result in prolonged delays, inventory management, etc.
Hence, Web3 is the best solution that establishes trustworthy standards and infrastructure among supply chain participants.
Web 3.0 is an emerging technology that has to display its ultimate capabilities. The increasing need for traceability, accountability, transparency, and security to enhance & automate supply chain operations are the driving factors that encourage the implementation of Web 3.0 into the supply chain industry.
Web3 prevents contracting disputes and increases the efficiency of administration contracts, gains customer trust, identify and fixes issues associated with product manufacturing and service delivery.
If you want to venture into innovations in the Web3 to automate and streamline your supply chain operations, approach us!
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