Blockchain technology makes the supply chain and procurement more transparent, safe and efficient, while reducing the risk of unknown ESG violations
(1) Improve security
Blockchain technology prevents important regulations from being bypassed through its role of blocking loopholes. Examples of this include preventing data from being tampered with and the creation of "ghost employees". Blockchain can create a transparent action audit trail, which cannot be manipulated.
(2) Sustainability
By closing down illegal and unethical practices, blockchain helps industries and governments take more sustainable actions. This technology brings unparalleled traceability and can help reduce environmental violations, such as illegally exported timber or palm oil trade that does not meet environmental requirements.
(3) Objectivity
Blockchain technology makes decisions based on objective data. This eliminates human input based on ulterior motives such as profit maximization. For example, the decision to cut or not cut a tree will be based on validated data, rather than by distorting important -- and more expensive -- practices, such as environmentally sound logging.
(4) Transparency
With blockchain, the sustainability and security of products can be checked from end to end to provide assurance - from raw materials to finished products.
(5) Cross border compliance
The zoning structure enables people in the value chain to respond to and comply with the regulations of a particular country.
(6) Easy to adopt
The pressure to move towards net zero emissions is enormous, and blockchain is a way to accelerate the process of becoming more sustainable. This includes the speed with which companies enact change, as it simplifies the path to broader sustainability.
(7) Consumer confidence
Blockchain enables enterprises to identify the source of raw materials and whether the supply of products violates ESG standards - thus protecting enterprises from reputation damage.
(8) Political compliance
The European Commission (EC) is just one of many regional political institutions seeking to design and develop blockchain capabilities throughout the country. Compliance with these capabilities will determine how and by whom the business is conducted.
(9) Increased efficiency
The supply chain may be fragmented, resulting in inefficiency. Blockchain allows data to be used in such a way that visibility between levels of the supply chain is higher.
(10) Financial security
Payments made through the blockchain can be monitored by both parties, which means that suppliers are no longer at a disadvantage in the process of waiting for processing. Blockchain accelerates this process, gives both parties more control and makes the supply chain more sound.
However, Rael said that to widely adopt UAV technology, it needs to be improved. Although automation and robotics are promoting economies of scale and efficiency, UAV delivery mode needs more work. UAV delivery is built around the innovation of supply chain performance, but it needs a crawl walk run strategy to implement this safely, with correct regulations and policies. As UAVs become more advanced, accepted by the society and, most importantly, safer, we can expect this delivery model to expand its scale and allow the company to invest in this field.
