Blockchain technology has increasingly transcended its initial association with cryptocurrencies like Bitcoin, showcasing its transformative potential in various industries. Recent developments indicate that blockchain could significantly enhance supply chain operations, particularly in emerging economies. Countries such as Nigeria, Kenya, and India have begun leveraging this technology to ensure the traceability and authenticity of pharmaceutical supply chains, thereby combating counterfeit products.
In Morocco, the OCP Group stands out as a prominent example of effective blockchain implementation within the agri-food sector. The company has adopted blockchain to create a comprehensive workflow integrating trade finance and all maritime agents, automating both internal and external processes. This approach supports secure and digitized transmissions throughout the organisation's supply chain.
The importance of blockchain technology providers emerges as a crucial component in the successful adoption of blockchain innovations. These providers are instrumental in guiding client organisations through technical and operational challenges, facilitating collaboration during the design and implementation phases of their blockchain projects. A recent study conducted by UIR Rabat Business School, in collaboration with Universidade Federal do Rio Grande do Sul (UFRGS), involved insights from Chief Technology Officers, Managers, and policymakers from Morocco and Brazil, highlighting the operational contributions of these providers in supply chain initiatives.
The study indicates that while blockchain has unique features to improve supply chain performance, the technology's adoption is fraught with challenges. Key benefits identified include enhanced transparency and traceability, which ensure that products meet national and international standards, thereby bolstering consumer protection and competitiveness in export markets. Furthermore, blockchain can help reduce inefficiencies by automating processes and minimizing the need for intermediary parties, thereby lowering operational costs and streamlining operations.
However, the study also notes several challenges hindering the implementation of blockchain technology in supply chains within emerging economies. A significant barrier is the lack of awareness regarding the potential applications of blockchain beyond cryptocurrencies, which hampers managerial understanding of its operational benefits. Additionally, infrastructural limitations such as inadequate internet coverage and the high initial costs associated with establishing blockchain systems can particularly disadvantage small and medium enterprises (SMEs). Training and expertise are also critical issues, as companies often require specialised knowledge to integrate blockchain into their operations effectively.
To address these challenges, the UIR Rabat Business School study delineates four strategic roles that blockchain technology providers should encompass:
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Development of tailored blockchain solutions: Providers should create bespoke blockchain solutions tailored to the unique requirements of businesses, particularly within emerging economies and agri-food sectors.
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Operational support and training: Beyond just offering technology solutions, providers must assist client organisations with implementation and provide ongoing training to build the necessary digital skills.
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Facilitating collaboration: Serving as intermediaries, technology providers can enhance collaboration among various supply chain stakeholders, ensuring a communal approach to blockchain advancement.
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Access to international markets: By utilising their expertise and network, blockchain providers can help organisations comply with international traceability standards critical in fields like agriculture, healthcare, and pharmaceuticals.
The research suggests that companies in emerging markets should adopt a proactive stance in forming partnerships with blockchain providers. Early engagement and collaboration throughout planning and project execution phases is vital for success. Conducting pilot projects to assess the effectiveness of blockchain in supply chain operations can yield valuable insights, contributing to broader industry standards.
In light of these findings, the study also emphasises the need for policymakers to incorporate blockchain technology providers into national strategies, such as Morocco’s "Innovation Strategy" and the "Digital Morocco 2030" initiative. By building robust blockchain ecosystems and fostering educational initiatives, stakeholders can enhance the capabilities of both businesses and technology providers, ultimately driving the successful integration of blockchain into emerging market supply chains.
Source: Noah Wire Services