Blockchain Pilots Aren’t Landing
A majority (80%) of supply chain blockchain initiatives will stay at the pilot stage through 2022, according to new Gartner research. Many organizations pushed to create robust use cases for the supply chain; however, most were inspired by banking and insurance pilots, and didn’t translate to supply chain. This should not discourage supply chain leaders from experimenting with blockchain—its use cases simply require a different approach.
The initial idea for supply chain use cases was adopting a technology-first approach that exclusively targets blockchain infrastructure, mirroring the banking and insurance sector approach. This strategy failed because many supply chain use cases need to capture events and data for physical products, packaging layers, and transportation assets, unlike digital-only financial technology use cases.
Supply chain leaders also need to understand how to digitize these events for sharing across a potential blockchain-enabled ecosystem of stakeholders. Many are adopting a broader view across their supply chains, mapping all requirements from sourcing to final distribution.
Although many blockchain initiatives didn’t survive past the pilot phase, they did motivate supply chain leaders to reassess process and technology. This analysis can help leaders gain a more comprehensive view of their supply chain’s health, and pinpoint what needs to change before they are able to implement blockchain technology effectively.
Before starting another initiative, supply chain leaders should identify and establish key criteria and technology options for capturing data that can measure their organization’s readiness to embrace blockchain.