The World Economic Forum (WEF) is convinced that DLT supply chain solutions can assist in the restarting of the global economy. They said that after launching a blockchain deployment kit. The Forum published a report that focused on how the deployment of various blockchain-based solutions can address the supply chain failures and inefficiencies that have been significantly exposed by the COVID-19 pandemic.
Together with this report, the WEF released a blockchain deployment toolkit that is intended to assist governments and businesses in adapting their supply chains to the prevailing economic climate and to:
“Accelerate an economic rebound post-COVID-19.”
World Economic Forums Endorses DLT to Restart Global Economy
The report was published on April 28; and it alleges that the resilience of private and public supply chains has been greatly tested amid the coronavirus health crisis. It went further to cite the supply chains of medical supplies, pharmaceutical products, and food among the industries that have been hit most severely.
This report also argues that the efficiency of supply chains majorly relies on transparency, and it advocated for the widespread adoption of distributed ledger technology (DLT) to come up with a shared truth among the supply chain stakeholders.
The World Economic Forum is a Switzerland-based non-governmental organization. It was founded in 1971 to engage leaders in academia, business, and politics on major economic issues; that relate to the advancement of the global economy.
WEF Launched Blockchain Toolkit
To help the business and governmental leaders in deploying blockchain-based supply chain solutions, the WEF has also launched its:
“Redesigning Trust: Blockchain Deployment Toolkit; which is intended to enable leaders to maximize the benefits and minimize the risks associated with DLT.”
The toolkit was developed for more than a year and saw contributions from at least 100 public and private entities; operating in 50 countries. They include Maersk, the World Food Program, Deloitte, and the World Bank. The blockchain and digital currency project at WEF USA, Nadia Hewett, commented:
“The blockchain deployment toolkit is essential for designing solutions that work for a multitude of actors; including smaller players who may not have access to the resources required to unlock the value of blockchain technology.”
The DLT toolkit has been piloted in various contexts that include Hitachi, Saudi Aramco, and many other small to medium-sized enterprises.
DLT Supply Chain Solutions Adoption Increases
There is an increasing number of major companies and institutions that have launched ambitious programs aiming to deploy blockchain across their entire supply chains in recent months. The CEO of the Maritime and Port Authority of Singapore, Quah Ley Hoon, explained:
“We see an acceleration of digitalization in Maritime Singapore, which has improved the productivity and efficiency of the sector. Blockchain has tremendous potential applicability in areas such as bills of lading, cargo-tracking, and trade financing.”
The United Arab Emirates is also nearing the deadline for the completion of its Emirates Blockchain Strategy 2021; which is an ambitious program to migrate 50% of governmental transactions onto DLT-based platforms.
Consumer Demand Drives Supply Chain Adoption
IBM Australia and New Zealand’s head of blockchain, Rupert Colchester, said that many businesses are implementing different DLT solutions across their supply chains; while responding to higher consumer demand for transparency. He added:
“Consumers are demanding a new level of transparency. Consumers reward the supply chain when transparency and sustainability are there.”
Earlier this month, reports emerged that ethical egg producer Farmers Hen House had started printing QR codes on their cartons; to enable consumers to trace the origin of their produce. Fast fashion brand H&M also seems to be adopting blockchain traceability for its premium clothing subsidiary Cos.