TECH & AI
“IN COMBINATION WITH IOT , BLOCKCHAIN TECHNOLOGY CAN INCREASE THE TRACEABILITY OF PRODUCTS AND MATERIALS ACROSS THE ENTIRE SUPPLY CHAIN ”
SIMON THOMPSON VP OF SALES NORTHERN EUROPE , JAGGAER
“ This provides quicker settlement , saving both parties time and promoting liquidity for suppliers .”
This impact stretches beyond financial transactions , with businesses able to register new clients automatically once a payment is sent , streamlining processes while maintaining transparency and accountability .
Moreover , blockchain ’ s applicability in identity management , contract management and document verification can significantly reduce the potential for fraud and money laundering in international transactions .
Paul highlights potential for process improvements based on EY ’ s client work , which has demonstrated a staggering
99 % cut in processing cycle time and 40 % cut in administrative costs using smart contracts .
“ The ability to integrate payments and business rules also promises to simplify international trade and the process of moving credit throughout the business network ,” he adds .
These efficiency gains could transform the landscape of international trade , making it faster , cheaper and more accessible to businesses of all sizes .
Enhancing sustainability and ethical sourcing As consumers and regulators increasingly demand transparency in supply chains , particularly regarding sustainability and ethical sourcing , blockchain offers powerful tools to meet these challenges .
Simon outlines the complexity of the issue : “ Ethical and sustainable procurement faces a number of complex issues , such as the regular verification that certifications are up to date , as well as the need to integrate new reliable sources of sustainability , diversity and inclusion data into their processes .”
Blockchain ’ s immutable record-keeping and traceability features make it an ideal technology for addressing these concerns , especially when one of the major challenges in longer supply chains is losing sight of the point of origin of materials .
This makes it harder for companies to verify that sustainable materials really were created in a sustainable manner .
“ Blockchain-based traceability makes it much simpler to keep track of raw materials , assuming all the supply chain
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