While Blockchain was originally developed for cryptocurrency use, its applications can be observed in numerous fields, and supply chain management is one of them. Blockchain has emerged as a valuable tool for organizations, especially those focusing on achieving sustainability in their supply chain system. Investing in Blockchain for sustainable supply chain is a strategic approach as it helps companies to align with environmental and social values and build a positive brand image that ensures the long-term resilience of their operations. Blockchain supply chain solutions help companies overcome the barriers to sustainability to a great extent.
In this blog, we will focus on why Blockchain is considered an essential tool in the quest to build sustainable supply chains.
A sustainable supply chain, also known as a green supply chain, refers to performing environmentally and socially responsible practices in every aspect of the supply chain, from sourcing raw materials to the final product. It involves taking necessary actions that can minimize the negative impacts of supply chain operations on the environment and society and help companies achieve long-term economic success.
Real-life Example of Sustainable Supply Chain
For instance, Nestle, the world’s largest, most diversified food and beverages company, has implemented a sustainable sourcing program, the Nestlé Cocoa Plan, for its cocoa supply chain. The company partnered with local communities in West Africa to improve the livelihoods of farmers, encourage sustainable agricultural practices, and fight against child labor risks. This initiative by Nestle not only helped them improve the quality of cocoa but also set a perfect example of implementing sustainable practices.
The following points highlight the importance of sustainable supply chain-
Organizations often encounter four major barriers while achieving sustainability throughout their supply chain-
Using Blockchain for sustainable supply chain would be a strategic move as it helps overcome all the barriers listed above.
Leveraging the power of Blockchain for sustainable supply chain enables companies to achieve transparency, traceability, and accountability in the system. Blockchain can help companies achieve sustainability goals in the following ways-
Blockchain offers end-to-end visibility into the supply chain that enables companies to track the product from its provenance to its final destination. The use of Blockchain for sustainable supply chain is a vital step as it helps identify the inadequacies in the system and ensure that products produced follow all the ESG standards.
Leveraging Blockchain for sustainability helps companies to reduce waste. Blockchain provides real-time visibility into inventory levels and ensures they only produce what is required. With Blockchain for sustainable supply chain management, issues such as overproduction can be prevented easily. It will not only reduce the inventory costs but also lower the environmental impact of the supply chain.
Blockchain also promotes social responsibility throughout the supply chain system. The increased transparency within the Blockchain-based supply chain system enables the participants in the network to track labor conditions and ensure that workers are being paid fairly on time. Using Blockchain for sustainability is an effective way to promote ethical labor practices and ensure that companies are not supporting any exploitation in the supply chain.
Companies can use Blockchain for sustainable supply chain as this technology allows them to track the carbon footprint of the product produced throughout the supply chain. Blockchain-based supply chain systems help companies identify the areas that have a scope of reducing carbon emissions, such as optimizing transportation routes for lower fuel consumption or using eco-friendly packaging material for reduced waste.
Blockchain offers real-time visibility into the inventory level and transactions. This visibility helps companies to reduce costs, improve lead times, and ensure the timely delivery of the product to the end consumers. Prefer using Blockchain for sustainable supply chain management in order to achieve a high level of efficiency.
Prioritizing using Blockchain for sustainable supply chain has become a necessity in order to stay competitive in today’s business landscape. Antier can be an ideal partner that harnesses the power of Blockchain to bring transparency, accountability, and eco-consciousness into the supply chain. Antier helps you embrace Blockchain for sustainable supply chain management and secure a competitive advantage, build a trusted brand, and future-proof your business in an increasingly responsible world. Take the step towards a more resilient and eco-friendly future by optimizing your supply chain with a Blockchain strategy. Schedule a consultation call with our experts to get started with us.