Get fascinating insights into the future of supplier risk management through the use of Web3 blockchain technologies in conversation with Michael Kolb.
The importance of blockchain technologies in supplier risk management
Blockchain technology offers promising opportunities for supply chain management. It enables unprecedented transparency in the supply chain, as all transactions are recorded in the blockchain and visible to all parties involved. This allows all parties to track the movement of goods in real time. This increases the traceability and traceability of products along the entire supply chain, from procurement to delivery to the end customer. As Stefan Schrauf, Partner at PwC Germany, puts it:
"The big advantage of blockchain for the supply chain is that even small interest groups have the opportunity to exchange information securely. Every input, every change is and remains visible to all participants. This ensures a high level of transparency and trust. The revolution has begun. Companies are well advised to get involved."
The decentralized nature of blockchain ensures that data is secure and protected from tampering. The use of cryptography makes it virtually impossible to change or falsify the information stored in the blockchain. This creates trust between all parties and reduces the risk of fraud. In addition, blockchain technology can help to optimize supply chain processes and make them more efficient. Seamless integration and direct data exchange between different players can minimize friction and save costs. Companies can save millions by reducing errors and delivery times. However, blockchain technology and its applications in supply chain management are still in an early stage of development. There are technical challenges such as limited scalability, interoperability with existing systems and lack of computing power for large projects. In addition, legal issues such as data protection and ownership have not yet been fully resolved. Companies must have the necessary technical know-how, involve all partners and choose solutions that can grow with their business:
Benefits of using blockchain for supplier self-disclosure.
The use of blockchain technologies for supplier self-disclosures offers a variety of advantages. Firstly, the blockchain enables a secure and trustworthy transfer of the self-disclosures to other customers. This eliminates the effort of repeatedly completing surveys, as the information is already certified and verified.
Furthermore, the self-disclosures are stored in the blockchain and cannot be manipulated. This ensures the integrity of the data and increases transparency in supplier risk management. In addition, the blockchain enables the tracking of changes and revisions, which leads to improved verifiability of the information.
Another advantage is that the use of blockchain technologies increases efficiency in supplier risk management. By automating administrative and recurring activities, such as completing surveys, resources can be saved and processes can be accelerated.
Blockchain revolution in supplier risk management
Michael Kolb from Scopewire on transparency, integrity and efficiency
Michael Kolb, head of development, co-founder and blockchain expert at Scopewire Data GmbH, plans to drive the blockchain revolution in supplier risk management. As an expert in this innovative technology, he explains the importance of blockchain for greater transparency, integrity and efficiency in companies' supply chains. Blockchain technology enables unprecedented transparency through the use of a distributed ledger. All transactions and movements of goods along the supply chain are recorded cryptographically in the blockchain and are visible to all parties at any time. "This allows seamless traceability from procurement to delivery," says Kolb. Studies by Kshetri show that this transparency enormously increases the traceability of products compared to conventional centralized systems. Another key factor is the immutability of the data stored in the blockchain through cryptographic hash functions. "It is practically impossible to manipulate this information," explains the blockchain expert. Self-disclosures from suppliers on sustainability aspects therefore remain intact and trustworthy. Analyses by Saberi et al. (2019) show that this immutability strengthens trust between all parties and reduces fraud risks to a minimum. In addition, Scopewire uses the interoperability of blockchain technology. Standardized interfaces enable supplier data to be exchanged seamlessly between organizations without redundant data entry. "As studies by Helo and Hao (in the 2019 case study) showed, this significantly increases the efficiency of supplier management," says Kolb. At Scopewire, the team is continuously working on innovative blockchain solutions to offer customers the benefits of transparency, integrity and efficiency. "Based on our expertise, we support companies in using the blockchain revolution for optimized supplier risk management," the expert concludes.
Michael Kolb on the potential of decentralized apps for digital administrative processes
As Michael Kolb, I would like to emphasize the importance of decentralized apps (DApps) for greater efficiency and transparency in the administrative area: "DApps are an innovative form of applications that are built on decentralized peer-to-peer networks such as the blockchain." As defined by internet-computer.de, a DApp is "a software application that is built on a decentralized peer-to-peer network." The key difference to conventional apps lies in the backend code. While the frontend code often differs little, the backend code in DApps consists of smart contracts that are stored directly on the decentralized blockchain. These smart contracts map the app logic and rules. DApps offer promising application possibilities, especially in the administrative area. As Axians Infoma explains on their website, administrative DApps can map processes such as approvals, invoicing and payment processing completely digitally and replace paper-based processes. The decentralized nature allows everyone involved to contribute. Some DApps are already showing the enormous potential of decentralization, as the article on t3n.de explains. These include financial apps for managing crypto and fiat currencies, gambling apps and decentralized file storage. The German Digital Economy Association (BVDW) divides DApps into three categories: financial apps for money management, partial financial apps such as bonus programs and non-financial apps for services such as identity verification or surveys. The example of CryptoKitties illustrates how a single DApp can overload the Ethereum blockchain. According to HubSpot, DApps must meet the criteria of decentralization, isolation, determinism and Turing completeness. This also includes open source code and the use of a blockchain for decentralized data storage. The future prospects for DApps are extremely promising. As internet-computer.de predicts, they will become increasingly important in many industries from banking to real estate to elections and voting and will drive the development towards a decentralized Internet. At Scopewire, we are continuously working on innovative DApp solutions for greater efficiency and transparency in our customers' administrative areas. Due to the decentralized nature, administrative processes can be fully digitized and data can be stored in an unalterable manner. Everyone involved benefits from this transparency.
Summary
Blockchain technology offers promising opportunities for supply chain management and supplier risk management. The transparent and immutable recording of all transactions in the blockchain allows products and information to be tracked seamlessly along the entire supply chain. This significantly increases traceability, transparency and trust between all parties involved. The decentralized nature of the blockchain and the use of cryptography make it virtually impossible to manipulate the stored data such as self-disclosures from suppliers. The integrity and trustworthiness of this information is thus guaranteed. Blockchain technologies can be used to optimize processes in supplier management and make them more efficient. Data exchange between organizations becomes seamless and redundant data collection is eliminated. Recurring activities such as surveys can be automated, saving time and resources. Companies such as Scopewire are working on innovative blockchain solutions to make these advantages available to their customers. Decentralized apps (DApps) based on blockchain enable the digital mapping of administrative processes and the secure storage of data. However, blockchain technologies are still in an early stage. There are technical challenges such as scalability and open legal questions to be clarified. Companies need the necessary know-how to use it.