- December 29, 2018
- Posted by: Simon Price
- Category: Cryptocurrency News, Featured
With the continuing emergence of blockchain technology disrupting the more conventional forms of practices today, we take a closer look at the vision outlined by Genesis Supply Chain on exactly how they plan to solve some of the most common issues, in one of the biggest industries suffering from a lack of autonomous management. We are, of course, referring to the supply chain industry. Although to most this is an industry flying relatively low under the radar in terms of attention, it certainly is one that could potentially be revolutionised by the utilization of this new and wonderful technology.
The supply chain industry makes up two thirds of global GDP, making it patently obvious that with a positive restructuring of the way this industry operates, we could see some drastically improved statistics. Whether by means of human error or a lack of general technical procedures, the supply chain industry is currently fraught with problems.
Serious investors in blockchain solutions will take note of how well the technology could potentially revitalise any particular industry, and there’s no doubt that the supply chain is one particular sector in need of a serious re-boot. GSC Platform aim to be at the forefront of that particular revolution!
THE STAKES OF SUPPLY CHAIN
WITHIN THE INDUSTRY
Wide and complex supplier’s clusters constantly appear and produce connected objects
(IoT) which are getting more and more innovative, having an impact on traditional
approaches for the supply chain industry. A company might have to deal with thousands of
suppliers and partners through various industries to fulfil its client’s needs.
In Deloitte’s article* regarding risks impacting the supply chain, companies highlight their
difficulty to manage sudden demand changes as well as the mark-up erosion, mainly due to
globalization and worldwide connectivity. Indeed, companies have no other choice
than trusting their stakeholders – internal and external to control the various flows of
their business activity. Even by using outsourcing as a lever, numerous companies fail
when they attempt finding a reliable visibility on their whole supply chain and remain
dependent on their stakeholders.
In any efficient supply chain system, partners share data, financial information or even
intellectual property. Beyond contracts, audits and insurance, trust in integrity and
performance of everyone is a priceless asset. However, in wide and fluid systems,
constructors lack visibility regarding data and activities of each stakeholder, implying trust
must be built another way. In these situations, where a high volume of transaction between
actors which most often do not know each other, quickness, trust and efficiency become
vital. An automated and outsourced blockchain solution based on sharing and data management appears as logical. Please see below some cases of blockchain utilization among various industries:
-Moog is developing a blockchain platform to share in complete safety details of computer assisted design aircraft parts with its suppliers.
-Maersk and IBM are working on cross-border and crossed transactions using blockchain technology to improve process efficiency.
Blockchain is a wide outsourced network of computers, recording every transaction
made by a member of the chain in a shared register (blockchain) which is
continuously and collectively updated live. In addition, a consensual algorithm
working in each of the computers ensure the validity of each transaction and prevents
fraud, malware attacks as well as data forging.
In any industry, whichever sector, holding data regarding the product quality and being
able to locate the supplier of a faulty component is essential for the main actors
of the sector. Moreover, reliable and verifiable characteristics of blockchain technology
shape a quick and efficient answer to fraud detection processes. Blockchain technology will
improve safety, speed, and make those ecosystems more reactive.
Today, supply chain industry represents two third of the global GDP (around 54 thousand
billion dollars worldwide). However, the increasing segmentation of economics, safety
and fluidity brought by blockchain technology to financial operation, will drastically reduce
risks linked to loans.
Thus, those loans will make the SME activity soar, being billion dollars opportunities for the
global supply chain market.
Purchasing services play an essential part in companies’ organization. With a
portfolio representing 40-80 % of the global revenue, the buyer is at the centre as he
is the link between all services (internal clients such as production, commercial, financial),
with clients but also and mainly with suppliers.
Please see below a simplified process of production among the industry:
Purchasing department is at the center of each company, in any industrial sector.
Its efficiency is essential for the good development of the company.
The relationship Buyer – Supplier:
- Suppliers bring you a wider business network.
- A good partner (buyer or supplier) becomes an efficient shield to face competition.
- He strongly develops the company’s growth.
- He increases the ROI.
It is clear that choosing a partner shall not only be made regarding its price offer. In this
case, you might make some quick savings but on the longer term, if your supplier is not
efficient, your ROI will be minimal.
Numerous factors will sway the choice of your supplier. Its prices obviously, but we should
also assess the quality-price ratio, quality of service, its reliability, speed in terms of
execution and other criterion which are all to be borne in mind to make the good
In the current supply chain, purchaser must go through tedious, manual and time
consuming tasks. Moreover, companies work on centralized database, prone to industrial
espionage and not connected with clients and supplier’s systems. In addition, spare
parts market is threatened by counterfeiting and documents forging, which are at the
origin of dead weight loss as well as risky in terms of human lives (plane accident, train
In this context, GSC Platform, thanks to the Blockchain technology, brings:
- An outsourced ecosystem.
- A higher data safety.
- A process automation.
- A digital link between every actor’s databases.
- A mark-up save for companies and a higher safety for consumers among sensitive
Provided with more than 7 years of experience as a purchaser in the aviation area, Maxime Legros has noticed that tools and communication channels available do not fit, leading to a
deadweight loss for their company. After discovering Blockchain technology in 2016, studying technologies such as Bitcoin and Ethereum, Maxime sees, via Blockchain, the ideal solution to improve purchasing processes.
I have thought GSC Platform, ever since its creation, as a way to create a virtuous circle in the relationship between suppliers and buyers, by improving trust, avoiding time consuming tasks for the purchaser. For me, the buyer is the engine of every company, and by using GSC Platform, he spares time in favour of added value missions, such as negotiating or searching for new suppliers.
“GSC ERP 3.0 will adapt to any company, regardless of its activity area or its size and substantially improve purchaser’s efficiency. The company will increase its mark-up without a need for weighty contribution nor modifying its intern processes.
My wish is to make GSC Platform the ultimate solution for every stakeholder of the industry, and to be pioneers in terms of purchase process improvement among cutting edge technologies such as Hyperloop, drones or IA.
The industry we are building together today will be our kid’s tomorrow!”
Learn more at https://gscplatform.io/