One of the Big Four consulting firms, Deloitte, has released a new report that describes why retail and consumer packaged goods (CPG) sectors need to look for ways to implement blockchain in their business models.
Deloitte’s recent New tech on the block report used detailed analysis of 50 different scenarios to lay out their case for blockchain adoption and was clear in presenting results from the research. The message: Blockchain is not only here to stay, but businesses that resist blockchain are putting their existence at risk.
The report looked at three distinct areas where blockchain could be implemented – Payment and Contracts, Supply Chain, and Consumer. All three of these areas could benefit from blockchain-based systems, and many companies are working on new systems in order to stay competitive right now.
FedEx CEO, Fred Smith, seems to be on the same page as Deloitte regarding blockchain. He recently stated that companies who ignore blockchain will be “going to extinction” because of the huge competitive advantages that it creates.
The Chief Information Officer at FedEx is also positive about what blockchain has to offer a wide range of industries, saying that blockchain has “big, big implications in supply chain, transportation, and logistics.” A company like FedEx can create huge advantages by developing blockchain-based systems to keep track of its shipments, even when they aren’t in the FedEx system.
One of the biggest advantages that blockchain brings to companies outside of the financial sector is the ability to share data with different companies and not have to worry about the integrity of the system. For FedEx, this means they can share their data with other shipping companies or keep an eye on FedEx packages that are being handled by a third-party.
As if to demonstrate the demand for new blockchain technologies in the retail and logistical sectors, Deloitte recently announced that the person who had built up their blockchain division would be leaving to head up a new blockchain company.
Eric Piscini was the head of blockchain at Deloitte, but now he is the CEO of Citizen’s Reserve. This new company is on track to raise $150 million USD and is working to create a blockchain platform that would integrate the global supply chain on a single blockchain.
The new project wouldn’t stop at merely monitoring shipments and goes a step further by allowing trading partners to use smart contracts to do business and settle their trade via cryptocurrency. This depth of capability is a great example of just how powerful blockchain is as a technology and why it will likely displace large parts of the current global financial and record keeping infrastructure.