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Research Outline
Prepared for Jeannie H. | Delivered March 25, 2020
Supply Chain, Logistics, and Blockchain
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Goals
The goal is to determine the market size of supply chain and logistics, major players and their challenges, use cases of blockchain in supply chain and logistics, and how blockchain is playing a role in trade finance.
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Early Findings
Global Supply Chain and Logistics
The global supply chain
a
n
a
l
y
t
i
c
s
market is expected to reach
$9.9 billion
by 2025, growing at a CAGR of
16.4%
.
The global logistics market as a whole is expected to reach
$15.5 trillion
by 2023, growing at a CAGR of
7.5%
.
According to
G
a
r
t
n
e
r
, some top global supply chain companies include Colgate-Palmolive, Nestle, PepsiCo, Intel, Starbucks,
A
l
i
b
a
b
a
, and Walmart.
Some
top risks
that supply chain companies are facing include trade wars, raw material shortages, recalls, climate change, and industrial unrest.
Starbucks was facing the need to reduce costs in 2019. They
performed research
that found that they had excessive 3PL spending and fewer than 50% of their deliveries were arriving on time.
They transformed their logistics process, streamlining everything into three sections called "plan, make, and deliver", and saved
over $500 million
.
B
l
o
c
k
c
h
a
i
n
and Trade Finance
By 2050, it is expected that
b
l
o
c
k
c
h
a
i
n
will be used to streamline the trade finance industry by creating
digital paper trails
of the numerous copies required for each trade.
In Singapore, a new
b
l
o
c
k
c
h
a
i
n
system called
Contour
will be released in Q2 of 2020. The system will seamlessly process
letter-of-credit
transactions. Banks are predicting that this system will keep trade finance going smoothly even during and after the current pandemic.
IBM is currently working with
14 European banks
to create a
b
l
o
c
k
c
h
a
i
n
network specifically for trade finance. The goal is to
allow smaller banks
and financial institutions access to trade finance without having to go through the large banks.
B
l
o
c
k
c
h
a
i
n
and Supply Chain Logistics
Some
reasons
that
b
l
o
c
k
c
h
a
i
n
is transforming the supply chain industry include adding transparency, removing central authority backing, and providing reliability.
Walmart uses
b
l
o
c
k
c
h
a
i
n
in its supply chain to
track its food products
through the entire process from delivery to sale.
Some companies, such as
T
o
m
c
a
r
, use
b
l
o
c
k
c
h
a
i
n
technology to
pay suppliers in Bitcoin
, avoiding the need for regular bank transactions.
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