Blockchain Resolves Uncertainty in the Supply Chain

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Blockchain Resolves Uncertainty in the Supply Chain

Uncertainty in supply chain procurement is a challenge faced by most purchasers. This uncertainty can be caused by disruptions at shops, factories, with raw materials, or at any other point in the supply chain. The types of disruptions vary but often have geopolitical, natural disaster, or human error origins. Blockchain technology can increase supply chain visibility and decentralization which, in turn, can help alleviate the friction caused by uncertainty.

“When managing different vendors across a traditional horizontal supply chain, different infrastructures and databases are being used, clouding transparency in a product’s evolution over time. Blockchain eliminates this challenge and creates a level of collaboration, efficiency and visibility the world has not seen before.” (Grant)

Research by the Hackett Group from 2016 identified four key procurement strategies for improvement which were becoming a better strategic partner to the business, increasing spend influence, improving agility, and tapping supplier innovation. The study also recommended that organizations become more information-driven. (Burnson)

Genesis Supply Chain Platform (GSCP) is a supply chain technology startup dedicated to improving the purchasing experience for procurement in the aviation industry. GSCP is launching GSC Aviation — a platform that allows information to quickly flow from suppliers to purchasers while adding a layer of trust utilizing blockchain technology and two-way supplier reviews. This platform network is unique in the aviation industry which relies on a complex supply system with more parts than most other industries.

In the aviation parts market, a healthy supply chain that properly manages risk is essential to the well being of MROs and other companies that operate in the space. Single supplier scenarios are dangerous and smart purchasers know to avoid such situations. There are also pitfalls with scenarios that include many suppliers when they cannot all be vetted properly and efficiently. Purchasers spend an inordinate amount of time improving their supply chain and attempting to predict when disruptions might happen.

“When procurement prepares for risk and the supply chain avoids disruption, the business can deliver on customer expectations and get the right products to the end user at the promised time. Customers won’t have to go to a competitor because the procurement team couldn’t fulfil the order.” (Wetekamp)

Proper supply chain risk preparation is much easier with a unified platform that prevents purchasers from chasing down new suppliers when a disaster or disruption occurs. GSC provides such a platform that not only aggregates suppliers with purchasers, but also provides historical performance and part traceability through the blockchain. Suppliers rate purchasers on their payment history and purchasers rate suppliers on deliverables. GSC is a unique opportunity for purchasers, suppliers, and regulators in the aviation industry to reap time and monetary savings, especially when uncertainty clouds the supply chain.

The GSC Platform is now open to early investors who are interested in the token and will soon be in public presale. The platform is scheduled to launch early 2019. You can find more information and read the white paper at https://gscplatform.io

Sources:

Burnson, Patrick. http://www.scmr.com/article/as_business_uncertainty_rises_procurement_faces_2016_balancing_act

Grant, Dan. https://www.omniapartners.com/blog/the-blockchain-lowering-uncertainty-in-supply-chain

Wetekamp, Jim. https://www.procurementleaders.com/blog/blog/mitigating-risk-in-a-time-of-uncertainty-682035#.W3LaUdIzouU

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