Blockchain provides an immersive packaging experience.
The use of blockchain for supply chain processes sees exciting applications that can improve package tracking, consumer awareness, and brand protection against counterfeit production.
Supply chains become more complex as the number of actors involved increases. Tracking, communications, contracts and payments become difficult to manage. Moreover, businesses must also focus on their consumers while managing their operations. Using blockchain for supply chain can help streamline the processes involved, including product packaging.
How Blockchain Can Simplify Packaging and the Supply Chain Process
Using blockchain for the supply chain, including product packaging, improves processes and reduces gaps. Here are three ways blockchain benefits product packaging operations.
1. Improved tracking and tracing
With blockchain, customers and businesses can track products from their origin. Blockchain also allows quick and easy access to information with something as simple as having a QR code on the packaging. It dispenses with the need to have lengthy information displayed on packaging boxes.
Since the data on a blockchain is immutable, customers can be assured of the authenticity of the information. Additionally, companies can easily trace issues in the supply chain, such as recalls.
Thus, businesses and customers benefit from improved tracking and tracing with blockchain for the supply chain. Many companies have already adopted blockchain for the same. For example, Bumble Bee Foods allows users to track information about their yellowfin tuna, from when it is caught through to availability on store shelves, using blockchain technology.
2. Reduction of cases of counterfeiting
As blockchain improves tracking, tracing, and transparency, instances of counterfeiting are automatically reduced. It assures businesses and customers that they are getting the right product. For example, a jewelry company can use blockchain to phase out conflict minerals.
Diamond leader DeBeers is already using blockchain for the same purpose and also eliminating child labor practices from its supply chain. Similarly, customers can also verify the authenticity of their ordered products using blockchain technology. The Ardnamurchan distillery has incorporated a QR code on its bottle of single malt Scotch that allows buyers to verify its authenticity.
3. Improved contracts and payments
Blockchain enables smart contracts that improve the execution, completion, and payment process of contracts. The terms and conditions defined in a smart contract cannot be changed once defined. In addition, the contract is executed automatically only after fulfilling the specified conditions. This reduces inefficiencies and automates the process.
Similarly, payment is also made automatically once the contract is completed. Going forward, we may see cryptocurrencies being the default payment method for smart contracts running on blockchains.
Using blockchain for supply chain operations, including product packaging, improves its security and accountability. This is just the beginning of blockchain implementation in product packaging. There are still imaginary use cases for blockchain in this space, and we can see new applications emerging every day as we get closer to the “Internet of Packaging.”