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The global menace of counterfeiting has not only hurt profitability but also tarnished the reputations of organizations. According to a report released by the OECD and the EU’s Intellectual Property Office, counterfeit goods represent 3.3% of world trade. Much of the supply chain-related counterfeiting vulnerabilities are linked to the various nodes that make it exceedingly challenging to identify the exact origin of fake goods. However, the emergence of Blockchain technology promises to nip all reverse logistics challenges in the bud.
Seamless Operations Across Complex Ecosystems
Blockchain is a distributed ledger system that tracks, traces, and verifies data across complex ecosystems. It enables organizations to drive transparency securely across the product value chain from raw material to the final product. This convergence of technologies serves as an information platform for all stakeholders, ensuring transparency, reliability, and security. Even distributors while carrying out product identification and location tracking can adopt a similar approach.
Blockchain is a powerful solution to counter online fraud. This technology is based on powerful encryptions and collective verification frameworks and enables manufacturers and logistics companies to record and store data from their RFID tags, sensors, & QR codes, and allows access to specific personnel. More importantly, the encrypted codes embedded in the system cannot be replicated for distributing counterfeits.
Transforming Reverse Logistics Processes
Blockchain promises so much for the reverse logistics space as it ensures a secured trail of information. This technology supports product authentication and warranty management across the value chain as well as in product authentication. According to various studies, reverse logistics costs pose a headache for organizations as 30% of online products ordered are returned. However, Blockchain with enhanced reverse logistics practices such as combining supply chain systems into a single platform can help recover product costs by enabling counterfeit management and sustainable supply chains.
Another key aspect is Blockchain’s interoperability with other technologies that ensure it is easily configured for traceability of parts. This much-hyped technology, not just tracks and traces the final product but also each component in the value chain for authenticity. It can hugely benefit supplier supply chains in executing smart contracts & securing agreements as well as processing invoices and inventories that ensure a seamless data trail for every part.
Securing Consumer Data on Multiple Devices
Blockchain can effectively and securely connect disparate supply chains. This can benefit governments, organizations, and authorized suppliers by reducing regulatory validation, product monitoring & verification, documentation, and tracking costs. All stakeholders’ data generated can help create an accurate and verifiable data trail that tells the product story, including every constituent part.
Blockchain can revolutionize the entire reverse logistic challenges from recycling to disposal – its data-driven information platform tools can even securely protect private consumer data on laptops and smartphones. The need of the hour for organizations is to walk down the Blockchain road in their pursuit of addressing core business challenges, thus paving the way for a sustainable reverse logistics ecosystem.