The implementation of blockchain technology in supply chains could relieve businesses in Western Europe $450 billion in logistics-related costs.

According to a new study from Cointelegraph Consulting and Swiss enterprise blockchain business firm Insolar, blockchain engineering can reduce supply chain-related costs for businesses between 0.4% and 0.eight%.

While that may sound similar a small figure, the sheer volume of the sector means that this per centum translates into a potential hundreds of billions in savings. Furthermore, the report claims that the technology volition pay for itself:

"94% of supply chain leaders say digital transformation volition fundamentally alter supply chain management. In the transition to industry 4.0, industrial business can expect a 25% gross increase in [Render on Capital letter Employed] by 2035."

In the articulation study, Cointelegraph Consulting and Insolar survey the problems that enterprise firms experience in managing their supply chains, stating that 60% of companies overpay their supply chain vendors. And 70% of firms have "visibility gaps" between the initial supplier and internal clients' systems, making tracking of supply chain sources difficult or impossible.

Current tech cannot solve supply concatenation issues

Electric current technological solutions similar enterprise resource planning and traditional databases are ill-equipped to address contemporary supply chain issues, according to the written report. One reason: Nigh 80% of enterprise data is siloed and prone to reduced integrity. The report states:

"The database approach fails to provide an inherent share of information related to the supply chain, which is crucial for counterparties that practice not trust each other to obtain information about a sure product, its price, delivery conditions, etc. The information is not always upward to date from some parties, and some information may exist hidden."

Insolar's founder, Peter Fedchenkov, notes that blockchain adoption will not necessarily uproot current IT systems, stating that it can be applied in tandem with existing infrastructure. He told Cointelegraph:

"When people think about blockchain there is a misconception that it's a new paradigm requiring a change in business entirely. We believe this is wrong though, and offer an arroyo to complement organizations existing Information technology infrastructures using our blockchain platform."

Cointelegraph Consulting launched on Dec. iii and aims to aid blockchain adoption amidst modest and medium-sized businesses past matching them with enterprise blockchain solutions that are applicable to their operations.

Blockchain a boon for supply chains

Blockchain technology has seen widespread adoption beyond supply bondage of diverse appurtenances including diamonds, rare metals, manner items and food. According to major American retail house Walmart, distributed ledger technologies like blockchain make it easier for the firm to recall problematic medicine or food items should the need arise.

Last week, Big Four inspect firm KPMG launched a blockchain-based rail and trace platform in Australia, China and Japan.

Recently, retail behemothic Carrefour and Swiss nutrient and potable conglomerate Nestlé joined IBM's Food Trust platform to track the supply chain of milk-based formula for infants with blockchain tech.

In Baronial, Cointelegraph reported that the 2d-largest Indian land of Maharashtra was preparing a regulatory sandbox to exam blockchain in diverse applications including supply chains, agricultural marketing, vehicle registration and document management.