Problem with supply chain: World Economic Forum suggests blockchain as a way out

Blockchain-enthusiastic tones from the ranks of the World Economic Forum: Many of the effects of the corona virus on the global value chain could therefore be mitigated with the help of decentralized technologies, according to a recent article by the NGO.The coronavirus pandemic affects not only life and limb, but also supply chains. Goods currently have greater freedom of movement than people, but that doesn’t help much if a link in the supply chain has to close its operations due to a corona infection.

 

Complexity is an issue

 It doesn’t help that supply chains have become so complex that it is becoming increasingly difficult for individual participants to keep track of their suppliers’ chains. The World Economic Forum (WEF) dealt with the corona-related danger for global supply chains in an article – and calls for blockchain-based solutions.The authors justify this demand with three properties with which blockchain technology can lead the global value chain into the era of the fourth industrial revolution.

 

Corona crisis reveals shortcomings in the slip economy

“Do the paperwork” – what tends to get on the nerves of consumers when filing a tax return is the order of the day for suppliers and producers.The authors see that many companies are still struggling with the digitization of their supply chains due to a lack of suffering. The costs of converting existing systems were therefore considered in many places to be higher than the promised efficiency gain.