Blockchain is a big topic of conversation, particularly among bitcoin aficionados. Distributed ledger technology, as blockchain is also called, boasts good security and a lot of promise. Supply chain professionals are bullish on the potential of the technology to give organizations who use it a competitive edge.
A recent APQC survey found that about one-third of supply chain professionals blockchain has the potential to create a competitive advantage for their organizations over the next decades. One out of ten respondents pointed to blockchain as a potential disruptor for their industry.
Blockchain offers a huge market opportunity. Last month, Research and Markets released a market report that put the global blockchain market at $411.5 million in 2017, with anticipate growth to $7.7 billion by 2022, which is Compound Annual Growth Rate (CAGR) of 79.6%.
"Increasing adoption of Blockchain-as-a-Service, rising cryptocurrency market cap and ICO, simplifying business processes, and creating transparency and immutability are expected to propel the growth of the blockchain market," the report explained.
At the same time, in the supply chain world, blockchain remains a somewhat unknown concept to some. Today, few organizations can point to current usage of blockchain in the supply chain. In addition, a recent study conducted by the Digital Supply Chain Institute (DSCI) at the Center for Global Enterprise with APQC found that over one-third of supply chain professionals report that they are either extremely or moderately unfamiliar with blockchain.
At the same time, one third of organizations are exploring how to use blockchain, particularly in the areas of logistics, procurement, and finance. The promise for reduced cost and better supply chain visibility make the use case (at least hypothetically) very compelling. Further, blockchain has the potential to offer better security and process control.
The infographic below from the APQC outlines more of the survey’s findings. How is your organization thinking about blockchain? Where do you see the promise? Let us know in the comments section below.
— Hailey Lynne McKeefry, Editor in Chief, EBN