Blockchain technology is increasingly seen as a game-changer for managing supply chains, especially in developing countries. Its decentralized and transparent nature helps solve old problems like inefficiency, fraud, and the inability to trace products.
In these emerging economies, supply chains often face challenges due to inadequate infrastructure and complicated logistics. Blockchain offers a secure and reliable record of transactions, allowing real-time tracking of goods, which ensures their authenticity and lowers the chances of fraud. This transparency is vital for building trust among everyone involved and improving overall efficiency.
A report from the International Finance Corporation in 2019 noted that developing markets might adopt blockchain more quickly because many people lack banking services and face higher financial risks. The report pointed out that blockchain could lead to big productivity improvements across various fields, including finance and global supply chains.
Companies like Maersk are already using blockchain technology with platforms like TradeLens to update their supply chain operations. TradeLens, a controlled blockchain network, has managed over 3.5 billion shipping events, showing how blockchain can improve transparency and efficiency in international trade.
Moreover, blockchain can help beyond just logistics. It can support low-carbon energy solutions and reduce risks for financial institutions, which is especially valuable in developing markets. To fully harness blockchain’s potential in these areas, it’s important to establish suitable governance and regulatory frameworks.
The global market for blockchain in supply chains is expected to grow rapidly, projected to reach around $2.26 billion in 2023, with an annual growth rate of 90.2% from 2024 to 2030.
In conclusion, blockchain technology has the potential to greatly improve supply chain management in developing countries. Its use can lead to better transparency, efficiency, and trust among everyone involved, ultimately driving economic growth and development.
Get the latest supply chain report news insights at The Supply Chain Report. For international trade resources, visit ADAMftd.com.
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