WHAT IS BLOCKCHAIN TECHNOLOGY? WHAT ARE THE OPPORTUNITIES AND CHALLENGES OF IMPLEMENTING BLOCKCHAIN TECHNOLOGY IN THE SUPPLY CHAIN? GIVE AN EXAMPLE OF HOW A COMPANY/INDUSTRY (OTHER THAN MAERSK) HAS USED BLOCKCHAIN IN THEIR SUPPLY CHAIN. YOU NEED TO DO SOME INTERNET SEARCH TO ANSWER THIS QUESTION.
BLOCKCHAIN TECHNOLOGY:
Blockchain technology can be defined in simple words as a distributed database. It is a database which is digital and shared by multiple parties. Every party can enter the record in the database, but data cannot be deleted. To delete or change data, the majority of the parties would be needed. Any party in the blockchain technology adds data from its end to this distributed database, and every party gets in touch with the information in the database.
OPPORTUNITIES AND CHALLENGES OF IMPLEMENTING IT IN THE SUPPLY CHAIN:
Like any technology, blockchain technology has many opportunities to explore, and there are also challenges on the way of exploiting these opportunities. However, in the following opportunities and challenges would be provided for the supply chain of the company.
Opportunities in the Supply Chain:
Opportunities for blockchain technology in the supply chain are huge as it decentralizes the whole process. Supply chain activities involve many parties, and any single party cannot be successful without contributions from another party. Even, the company cannot be successful in the supply chain activities, if no single party in the supply chain is not working accordingly. Therefore, a shared and distributed database in the supply chain enables all parties to share their data and use data on each other. This aspect opens the door of many opportunities for each party and supply chain activities become consistent and certain. Moreover, smart contracts between parties can be signed, and every party remains fully informed and aware. Smart contracts are self-executing contracts which are signed and completed in a transparent manner (Marr).
Challenges in the Supply Chain:
Benefits of blockchain technology are abundant in the supply chain, but there are also some challenges. The first challenge is to enable every party to use shared and distributed databases effectively. Every party should be prepared and willing to cooperate with the technology fully, and it should also know how to implement the technology — moreover, another important challenge which may be there where data and information are involved. The involvement of some parties in the supply chain would produce lots of information and data, and there is a challenge for using that information in a useful manner. These challenges may get severer when parties are not mature, and they have any communication problem or trust deficit.
EXAMPLE OF ITS USE BY ANY COMPANY:
Many companies have adopted blockchain technology in their supply chain, and Wal-Mart is one of them. The company has implemented blockchain technology by working with IBM. The company has implemented the technology for suppliers of food products as these suppliers are of leafy greens. It shows the effectiveness of blockchain technology that it ensures the supply of fresh products inconsistent and efficient manner. It is the strength of the technology that shared and distributed information through blockchain technology would ensure timely and efficient supply of fresh products (Gagliordi).
CONCLUSION:
The paper has concluded that blockchain technology is a shared platform with the help of a pool of information called database accessible to all parties in a system. The paper discusses opportunities and challenges of blockchain technology in the supply chain in which some parties participate, and they can work foolproof if they are aware of each other’s actions and decisions. However, the challenges might emerge if there is a lack of integrity and communication between parties. However, the effectiveness of blockchain technology is attracting many companies, and Wal-Mart is one of these companies which have implemented the technology on its supply chain for leafy greens. It is recommended to use the technology in the supply chain so that supply chain activities can be efficient.
IN THE KL WORLDWIDE ENTERPRISE INC. CASE, WHAT ARE THE KEY PROBLEMS DISCUSSED IN THE CASE, WHAT ARE YOUR RECOMMENDATIONS TO ADDRESS IDENTIFIED PROBLEMS? YOU NEED TO DISCUSS YOUR PROBLEMS/SOLUTIONS IN THE FRAMEWORK OF PEOPLE, TECHNOLOGY, AND PROCESSES. (CASE AND OUR PPT WILL BE UPLOADED LATER)
The case is about a company, i.e. KL Worldwide Enterprises Inc. which is new challenges on two fronts. First, it is the growing competition from low-cost competitors and the second challenge is related to the lack of integration and communication between different production units in different countries. Therefore, these problems and their recommendations are going to be discussed in the following in the framework of People, Technology, and Processes.
KEY PROBLEMS:
KL Worldwide Enterprise is a sports apparel retailer in the United States, and it has been facing competition from brands which are offering low-cost products made from China. Furthermore, the company is facing challenges of inability to have information about the status of its facilities in Brazil, Singapore, and India. These are key problems faced by the company. These problems are going to be discussed using the framework of People, Technology, and Processes.
People:
The problems are associated with people as well because they enable a strategy, and they ensure an application. However, the problem is related to people indirectly.
Technology:
Key problems faced by the company are related to technology. The company is having difficulties in communicating with facilities in different countries. This lack of communication should not be there because it is the era of information technology, but the company is having this problem. It is because of the lack of technological means to get in touch with operations in other countries (Kesner).
Processes:
The company is having a high-cost problem, and this problem is related to processes. The company is unable to compete with low-cost competitors having its production system in any developed country. Facilities in India, Brazil, and Singapore are producing products which are time-consuming, and these processes should be made efficient so that cost can be cut. The case presents disappointments about operations in these countries which mean that the company does not have innovative processes. Thus, the problem with processes is also linked to problems with technology.
RECOMMENDATIONS TO ADDRESS IDENTIFIED PROBLEMS:
Recommendations for identifying problems should be made in light of the framework of People, Technology, and Processes.
People:
It is recommended to get people involved, and they should be trained and taken on board. Change management is needed, and collaboration among people is very necessary. The company should take employees and supply chain partners on board in introducing this change. They should be educated and informed about the use of technology and the running processes.
Technology:
It is recommended to bring technology to the company. For supply chain efficiency, blockchain technology should be adopted, and communication should be faster, transparent, and consistent between different facilities of the company through technology. It is recommended to use technology as a way to integrate every department and facility of the company, including its supply chain partners (Expert Panel).
Processes:
The company does not have efficient processes in different facilities which should be replaced with new and innovative processes. For this purpose, new technology should be introduced, and facilities in Singapore, India, and Brazil should be provided with innovative processes choices. For this purpose, the company should depend on technology very much.
CONCLUSION:
The paper concludes that KL Worldwide Enterprise is having multiple problems with its supply chain, processes, and technology adoption. It is clear that the company has remained stagnant for quite some time which has made it irrelevant in modern day requirements. The paper has identified problems which are linked with lack of technology use in the company, and it is recommended to introduce the technology. A change process is needed, and successful change process should have technology at the center, and the framework of people, technology, and processes should be followed because all of these three are important.
Work Cited
Expert Panel. “11 Ways To Stay Competitive as Technology Evolves.” Forbes. Forbes, 31 October 2018. Web. 17 December 2018. https://www.forbes.com/sites/
forbestechcouncil/2018/10/31/11-ways-to-stay-competitive-as-technology-evolves/#1ecd9e25462f.
Gagliordi, Natalie. “Walmart implements IBM’s blockchain for food traceability.” ZD Net. ZD Net, 24 September 2014. Web. 17 December 2018. <ttps://www.zdnet.com/article/walmart-implements-ibms-blockchain-for-food-traceability/.
Kesner, Richard M. “KL Worldwide Enterprises Inc: Putting Information Technology to Work.” Richard Ivey School of Business (2018): 1-26.
Marr, Bernard. “How Blockchain Will Transform The Supply Chain And Logistics Industry.” Forbes. Forbes, 23 March 2018. Web. 17 December 2018. https://www.forbes.com/sites/bernardmarr/
2018/03/23/how-blockchain-will-transform-the-supply-chain-and-logistics-industry/#67205745fecd.
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