In a report just released by audit and consulting firm Deloitte finds blockchain technology is set to become a crucial asset to the retail and consumer packaged goods (CPG) industry.
The report analyzed more than 50 potential cases of blockchain use and goes on to suggests the “potential impact” of this emerging technology “is huge.”
The report, entitled "New Tech On The Block", states blockchain is going to become "standard operational technology across the manufacturing, financial, and consumer industries," and goes on to state the next five years will be "a tipping point" as businesses begin to understand the potential of blockchain. The report also emphasizes businesses need to assess if their strategic objectives should lead to blockchain investment and says those that do not at least consider it are "at risk of falling behind".
The report also covers the rationale for blockchain in three key areas. Those areas are the consumer, chains of supply, and contracts and payments - each is scored in terms of the added-value blockchain systems could bring. While the main focus of the report is business adoption, it also states the consumer will be the ultimate beneficiary if blockchain creates greater efficiencies and cost savings throughout the supply chain. These benefits will be passed on to the consumer in the form of lower prices, safer products and higher quality.
According to the report, figures from the Gartner market research firm estimates blockchain's value-add to business will grow to $176 billion by 2025 and surpass $3.1 trillion by 2030.
Focusing on both retail and CPG supply-chains, Deloitte claims the technology can solve the four so-called major "pain points" of the industry - compliance, traceability, flexibility and stakeholder management. The report suggests as an immutable, auditable, and system without intermediaries, with the operability of smart contracts, blockchain can address all of these concerns effectively.
Earlier in May, the chief executive of the FedEx of delivery services multinational stated in a speech blockchain was "the next frontier that’s going to completely change worldwide supply chains".
Also, Oracle, the world’s second-largest software company announced it would be offering blockchain products, including for supply chain management for pharmaceutical companies. In April, Samsung said it intended to use blockchain to manage its global supply chain.