Through 2022, 80% of supply chain blockchain initiatives will remain at a proof-of-concept (POC) or pilot stage, according to
"Modern supply chains are very complex and require digital connectivity and agility across participants," said
This setback should not discourage supply chain leaders from experimenting with blockchain. Blockchain use cases simply require a different approach for supply chain than for other sectors.
From Technology-First to Technology Roadmaps
Adopting a technology-first approach that exclusively targets blockchain infrastructure was the initial idea for use cases in supply chain, mirroring the approach of the banking and insurance sector. However, this approach did not work, because in contrast to the highly digital-only fintech blockchain use cases, many supply chain use cases will need to capture events and data across physical products, packaging layers and transportation assets. Additionally, supply chain leaders need to understand how these events can be digitalized for sharing across a potential blockchain-enabled ecosystem of stakeholders.
"Today, supply chain leaders have now started to treat blockchain as part of a longer-term technology roadmap and risk management planning. We see that many leaders are adopting a broader end-to-end view across their supply chains and map all requirements - from sourcing across manufacturing to the final distribution,"
Blockchain As a Stimulus
Though most blockchain initiatives didn't survive past the pilot phase, they have provided fresh stimuli for supply chain leaders to conduct broader supply chain process and technology reviews.
"Many supply chain leaders that have conducted blockchain initiatives found that they now have a more complete overview of the current health of their supply chain. Their perception on how blockchain can be used in the supply chain also has shifted,"
Before starting another initiative, supply chain leaders should identify and establish key criteria and technology options for measuring and capturing metrics and data that can indicate an organization's readiness to explore blockchain.
"In a way, blockchain is a collaboration agent. It forces an organization to continually assess on a broad scale if its structure and employees are ready to embrace this new technology,"
Gartner clients can find more information in "Leverage Blockchain Developments as Catalysts for Strategic Technology Planning Across the Supply Chain".
About the Gartner Supply Chain Practice
The Gartner Supply Chain Practice brings together the most relevant analysis, peer-based best practices, metrics and data across Gartner and offers supply chain leaders a platform to make the choices that will drive their business forward.
Additional information is available at https://www.gartner.com/en/supply-chain. Follow news and update from the Gartner Supply Chain Practice on Twitter and LinkedIn using #GartnerSC.
About Gartner Supply Chain Symposium/Xpo
Gartner Supply Chain Symposium/Xpo is the most important gathering of CSCOs and supply chain executives. Supply chain leaders will gather to gain a strategic view of the trends disrupting their business and the insights and frameworks they can use to build agility and robustness into systems, processes and decision making.
Upcoming dates and locations for Gartner Supply Chain Symposium/Xpo include:
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