What is the Supply Chain?
The Supply chain is a system that lays out the process of how industries work together to produce and distribute a quality product at the right place at the right time. From the process of converting natural resources to raw materials to the delivery of the final product to consumers, the Supply chain is truly the backbone of our economy. Furthermore, this network generally consists of Suppliers, Manufacturers, Retailers, Logistics, and of course, Consumers.
In particular, it starts with getting and sorting the right quality of raw materials from our natural resources. From there, the raw materials are carried by logistics and delivered to a supplier. The supplier sells the materials to manufacturers who then transform it into a finalized product.
Later on, a distributor which acts as a wholesaler of the product will then deliver it to their retailers. Finally, the consumers buy the finished product from the retailers. Notably, some products can be recycled and reused as raw material, which means that it can be manufactured again as a new product.
The challenges in the Supply Chain
The supply chain is facing a lot of problems each day. With the consistent growth in population (resulting in increased demand), Supply chain managers are having a challenging time delivering quality yet affordable products and services to consumers. Two of the biggest and most well-known problems are:
- Increased costs in all involved processes in the Supply chain
- Counterfeit products
The problem in cost control
Many factors cause an increase in costs in the processes involved in the Supply chain. Specifically, it usually comes from the increasing energy consumption, the oscillation of fuel prices, freight costs, increasing population (demand), limitations in existing technologies, unnecessary intermediaries, latest changes in laws and regulations, increase in commodity prices due to operation costs, and limited natural resources
The increase in counterfeit products
Industries, companies, regulators, and some consumers are struggling to fight the increase in counterfeit products. Things such as fake labels and packaging, substandard materials, and low or lack of quality control are examples that hurt many leading brands, as well as consumers. Fraudulent products are causing problems on a global scale that affect industries of mobile devices, pharmaceuticals, fashion, and many more.
Also, the lack of quality control and unregulated, or perhaps illegal production and distribution of raw materials to a manufacturer are some reasons why fake products exist. It hugely cuts the costs for shady suppliers and manufacturers but will produce a very low-quality product.
How will XTRABYTES™ solve the problems in the Supply chain
Since blockchain is known for its transparency and traceability, supply chains can achieve higher levels of efficiency and connectivity. XTRABYTES™, along with its patent-pending PoSign™ protocol technology, can effectively put an end to the production of counterfeit products if legit companies and brands use blockchain to store and validate high-quality products. Likewise, the XTRABYTES™ blockchain technology can aid governing bodies such as the Bureau of Customs track and take action against fake products as well.
Additionally, concerning the problem in cost control, XTRABYTES™ blockchain aims to reduce all transaction costs that are involved in the processes in the Supply chain. For instance, it can eliminate the costly and unregulated surcharges from suppliers and intermediaries since the XTRABYTES™ blockchain can record, keep track, and validate all information (e.g., prices, labor costs, operational costs, etc.) associated in producing and getting raw materials.
With the XTRABYTES™ blockchain and PoSign™ protocol, no challenges will be left unresolved. Our imagination is the only limit!