Study: Blockchain to Save $450B in Supply Chain Costs in Western Europe

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

According to a new study from Cointelegraph Consulting and Swiss enterprise blockchain firm Insolar, blockchain technology can reduce supply chain-related costs for businesses between 0.4% and 0.8%.While that may sound like a small figure, the sheer volume of the sector means that this percentage translates into a potential hundreds of billions in savings.

"94% of supply chain leaders say digital transformation will fundamentally alter supply chain management. In the transition to industry 4.0, industrial business can expect a 25% gross increase in by 2035.".

In the joint 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.

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 chain issuesCurrent technological solutions like enterprise resource planning and traditional databases are ill-equipped to address contemporary supply chain issues, according to the study.

Cointelegraph Consulting launched on Dec. 3 and aims to aid blockchain adoption among small and medium-sized businesses by matching them with enterprise blockchain solutions that are applicable to their operations.

Blockchain a boon for supply chainsBlockchain technology has seen widespread adoption across supply chains of various goods including diamonds, rare metals, fashion items and food.

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

In August, Cointelegraph reported that the second-largest Indian state of Maharashtra was preparing a regulatory sandbox to test blockchain in various applications including supply chains, agricultural marketing, vehicle registration and document management.