McKinsey: blockchain's value in supply chain
Blockchain was initially created t...
Supply Chain Digital examines McKinsey’s report “Blockchain technology for supply chains - A must or a maybe?”
Blockchain was initially created to support transactions in bitcoin - a digital cryptocurrency that exists independently from a central bank. Essentially blockchain technology provides a platform for creating and distributing the ledger, or record, of every bitcoin transaction to thousands, if not millions, of computers linked to networks worldwide.
Due to the transactions and ledgers being encrypted, blockchain technology provides more security than the banking model, as well as its instantaneous transmission via the internet gets rid of the banks’ two-to-three-day clearing process and supporting costs for moving money from one account to the other.
What is blockchain’s value in the supply chain?
Many supply chains worldwide operate without the necessity of blockchain. However, new technology such as blockchain, AI and automation has shaken up the supply chain industry and become a regular fixture on the lips of supply chain executives. McKinsey’s report found that:
Walmart trialled an application that traces pork in China and produce in the United States, in order to authenticate transactions and the accuracy and efficiency of record keeping.
BHP is implementing a blockchain solution that replaces spreadsheets with tracking samples internally and externally from a range of providers.
UK startup, Provenance, has raised US$800,000 to adapt blockchain technology to trace food. In the past, it piloted tracing tuna in the Southeast Asian supply chain.
In a bid to assess blockchain technology’s value in the supply chain space, McKinsey revealed three key areas where it could add value:
Replacing slow, manual processes - Despite supply chains handling large, complex data sets, many processes are slow and rely primarily on paper.
Strengthen traceability - Increasing regulatory and consumer demand for provenance information is already driving change. Improving traceability adds value by mitigating the high costs of quality products, like recalls, reputational damage or the loss of revenue from black or grey market products.
Reducing supply chain IT transaction costs - At this stage, the benefit is more theoretical than actual. Bitcoin pays people to validate each block or transaction, while requiring people who propose a new block to include a fee in their proposal. Such a cost would likely be prohibitive in supply chains because their scale could be staggering.
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Supply Chain Leader TransImpact Refreshes Identity
Supply chain and logistics leader Transportation Impact today unveils a new corporate identity to reflect its expansion beyond shipping and evolution into an end-to-end supply chain technology solutions provider.
The organisation will be known as TransImpact, today unveiling the new name, a refreshed logo and branding, and an updated website at www.transimpact.com. The new tagline ‘Driving Value. Creating Next’ highlights its new motivation and strategy to evolve its business and ‘create a foundation for new opportunities’.
The Evolution of TransImpact
Branding research revealed to TransImpact that the company has built a strong, industry-wide reputation for agility and innovation over the past 12-plus years, during which it has primarily been known as a pioneer in the parcel negotiation industry. Investment into its new visual and corporate identity reflects that shift, says Berkley Stafford, CEO, TransImpact.
“The name TransImpact is a natural evolution from our original name, Transportation Impact,” Stafford said. “As we evolved to support clients beyond shipping, this new name better reflects our new future as a technology company delivering solutions across the entire supply chain continuum.”
Today’s rebrand is the latest step in TransImpact’s evolution. The company acquired supply chain business intelligence platform Vizion360 in January 2021, and now provides a suites of Software as a Service (Saa) technologies, consultancy, and managed services across its Parcel Solutions, Business Performance Solutions, and Managed Logistics Solutions divisions.
Who Are TransImpact?
- Founded: 2008
- Employees: 150
- Customers: 1000+
- Headquarters: Emerald Isle, North Carolina
- CEO: Berkley Stafford
TransImpact is an industry leader in the development and application of end-to-end technology-based solutions that optimise supply chain operations. It serves more than 1,000 customers, including global organisations such as jeweller Pandora, fashion and footwear brand Toms, and sports equipment company Ping. TransImpact manages over $1bn in logistics spend, and clients that leverage its parcel solutions save an average of 19.7%.
TransImpact is led by chief executive Berkley Stafford, a former UPS man and, more recently, Head of Healthcare Sales, the Americas, for Envirotainer. Stafford has been instrumental in TransImpact’s vision to move beyond shipping, and is a strong advocate for IMPACT1, the company’s philanthropic initiative through which more than $1m has been donated to charitable causes. He holds a BSc in Business Administration from The University of North Carolina at Wilmington.