Blockchain emerged in 2009 as a revolutionary technology for keeping track of digital transactions. While it was initially used to record cryptocurrencies, the technology has come a long way since its emergence.
Today, we see the use of blockchain technology in multiple industries, including financial services, banking, and healthcare. Moreover, the technology is also gaining popularity in several other industries, such as the FMCG sector. As the competition within the FMCG industry increases, brands are investing in Blockchain to gain a competitive edge.
Let’s learn more about how blockchain technology can help businesses in the FMCG industry gain a competitive advantage.
How Blockchain Can Help Businesses in the FMCG Industry Gain Competitive Advantage
Enhances Inventory Control
Blockchain provides a complete record of transactions to all relevant stakeholders involved in business processes. Since it allows all concerned participants in the organization to keep a record of sales and exchanges, it provides companies with better inventory control and improves business efficiency.
Improves Supply Chain
Supply chain management is critical in the FMCG industry as it helps regulate the sales and supply and the return and exchange of damaged goods.
Blockchain helps businesses in the FMCG industry track the entire production process. Moreover, it also aids in keeping track of the movement of manufactured products from the business’ manufacturing facility to the point of sale.
Since it provides a comprehensive record of a manufactured good’s position throughout the supply chain, it helps improve the supply chain.
Enhances the Data Security of Businesses
The use of Blockchain technology in the FMCG sector can help businesses enhance their data security.
Blockchain relies on the use of secure blocks which contain all relevant information. Since the blocks are secured and can only be accessed by concerned authorities, there’s no chance of data theft.
Enhanced data security helps businesses gain a competitive advantage.
Upgrades Transparency
Blockchain provides a comprehensive status of all the products, inventory, and sales. Moreover, the data supplied by Blockchain is reliable and can be accessed throughout the network.
Since the system allows for improved inventory control and better supply chain visibility, it assists in upgrading the transparency for FMCG, which can help them gain an advantage over their competitors.
Key Takeaways
Blockchain technology allows businesses to improve their transparency, supply chain, and data security. As businesses develop an improved understanding of the benefits of Blockchain technology, we can look forward to FMCG companies adopting Blockchain to gain an advantage over their customers in the near future.
However, while Blockchain technology brings several benefits, there is a need for FMCG companies to thoroughly understand the possible risks associated with its use. With a thorough understanding of the potential risks of Blockchain, FMCG companies can leverage its benefits and gain a competitive advantage in the industry.
