A blockchain is a digitized, decentralized, public ledger used to record transactions or keep track of distributed data. One review describes blockchain as a type of database of information, not limited to transactions, but also focuses on information that brings business value. Since the data or ledger is secured, not owned by any individual, each individual in the chain has the privilege to keep track of data and follow the transactions. By using Blockchain in Chemical Industries, companies may improve their ability to innovate and produce interesting solutions for their customers.
Loopholes in Traditional Shipping processes
It observed that the chemical industry has been engrossed in fighting low margins, increased stiff competition, and commoditization of product and price pressure across the globe. Driven by innovative technology advancements, many chemical companies have begun to rethink on their growth strategies, trying to move away from a cost-cutting model and move towards an agile, competent and aggressive business model.
Role of Blockchain in Chemical Industry
A blockchain-based system would allow the e-commerce sites to significantly cut down on inventory, as transactions are simultaneously processed and verified. E-commerce companies could function more as a facilitator than an intermediate. This also eliminates another potential issue of fraud and counterfeit products.
Below are listed some ways by which blockchain apps can optimize shipping processes:
- Inundate business threats
Multiple chemical segments are constantly threatened by counterfeiting. Due to the increasing complexity in chemical supply chains, tracking products and shipments becomes more and more important. Companies invest in contemporary logistics solutions to deal with transportation, location services, regulations, hazards, packing requirements, security, customer engagement and more. Even with extensive planning, companies could not avoid losing millions of dollars due to mismanaged transportation, fraud and managing multiple systems throughout the supply chain. Few companies have completed its first round of testing on blockchains logistics capabilities. Perhaps “smart contract” would be the biggest dollar saver, where details such as regulations, hazard control, and any other requirements can be programmed directly into the system. This significantly cuts down on order processing and if carried out correctly, should ensure better government compliance.
2. Facilitate mergers and acquisition.
As chemical companies are spun off in a stream of merger and acquisitions, many still carry the brand recognition. These new organizations will compete as part of an ecosystem rather than a single business with broad coverage. So how does blockchain fit in? Blockchain technology provides a nimble commerce platform in which these next-generation chemical companies can compete. These trades will also be done without the need for a third party and will be pure B2B transactions, thereby reducing costs and potentially changing the game for many players in the industry.
3. Establish ownership
Blockchain can be used to prove ownership when procuring or disposing of an asset. It can also help to track the history of an asset and related maintenance activities. Blockchain can also be used to track chemical container movements and ensure asset safety. Blockchain thus becomes the source of base information for each organization. This way, no matter what happened to an asset as it moved through the supply chain, all stakeholders and systems would know its status.
Blockchain in Chemical Industries can radicalize shipping protocols and make the industry processes foolproof and streamlined. A chemical company’s investment in a blockchain app will be a game-changer that has the potential to propel you way ahead of peers and competition, and put you in the running for the top spot!
In case, you are looking to understand Blockchain’s implications in your business sector in more detail, drop us an email on [email protected] or schedule a free consultation with our team of blockchain experts who can guide you through the blockchain implementation in a specific use case.