Gartner: blockchain initiatives to pilot until 2022
The research and advisory firm has revealed that one of the biggest reasons for the development is that early blockchain pilots for supply chain pursued technology-orientated models have been successful in other sectors, such as banking and insurance.
“Modern supply chains are very complex and require digital connectivity and agility across participants,” commented Andrew Stevens, senior director analyst with Gartner Supply Chain practice. “Many organisations believed that blockchain could help navigate this complexity and pushed to create robust use cases for the supply chain. However, most of these use cases were inspired by pilots from the banking and insurance sector and didn’t work well in a supply chain environment.”
It is thought that blockchain use cases require an alternative approach for supply chain than other sectors, and shouldn’t discourage supply chain leaders from experimenting with blockchain.
With technology having an increasing influence over how firms operate their supply chains, a technology-first approach that targets blockchain infrastructure was the initial idea for use cases in supply chain, replicating the approach of the banking and insurance industry. However, in comparison with the highly digital-only fintech blockchain use cases, many supply chains will need to capture events and data across physical products, packaging layers and transportation assets. It’s important that supply chain leaders understand how these events can be digitalised for sharing across a potential blockchain-enabled ecosystem of stakeholders.
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5 minutes with: Ivalua’s Sundar Kamak
Who are you?
My name is Sundar Kamak, I’m Head of Manufacturing Solutions at Ivalua. I’ve been with the company for around two years now, and I’m responsible for our industry solutions and our pre-sales team. Before joining Ivalua I spent almost 20 years in the source-to-pay procurement space, working for a number of providers. But I got my career started in manufacturing and supply chain, specifically in automotive and aerospace.
And what is currently taking up the majority of your professional time?
The last year I've been focused in helping organisations put together a digital transformation strategy, especially manufacturing companies, so they can continue to address some of the challenges they face due to the COVID pandemic.
The traditional approach of engineers designing their latest product then procurement going off to source no longer works
What are the biggest challenges facing your corner of supply chain?
We have a lot of clients coming from different backgrounds - aerospace, high-tech, automotive - and they’re feeling the pressure and the crunch. There’s a lack of product, lack of material availability, lack of resources, labour shortages. So, I work with the leadership in these organisations, try to understand what problems they're looking to solve and come back with Ivalua solutions that can help them address some of these challenges.
Where do the biggest opportunities lie?
If we look at manufacturing, it all comes back to procurement and supply chain being involved sooner in the process. The traditional approach of engineers designing their latest product then procurement going off to source no longer works. It’s important to treat suppliers like partners, which means you build trust, so they can participate very early on in the product design and product development process. It’s not done consistently in the manufacturing sector, but it will be key.