Blockchain Technology

in the Supply Chain

Increasing transparency, traceability and

efficiency across the supply chain network.

protokol.com

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 A Fragmented Ecosystem
As supply chains have become truly global, it’s now more
important than ever before for all players to work together
in harmony. No longer linear chains, supply chains are often
interconnected webs of suppliers, transporters, wholesalers
and customers, all dependent on the other.

But, with issues such as fragmented systems, a multitude of

legacy ERP systems that do not interact, siloed technology,
and inefficient processes, supply chains across the world are
facing a series of complex obstacles compounded by market
uncertainty.

Blockchain technology has the power to transform the

supply chain, solving key challenges and optimising outdated
processes. It enables increased transparency and improved
traceability and accountability, while minimising risk.
Blockchain solutions even allow for more accurate data and
better forecasting, significantly reducing costs across the whole
supplier network.

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Challenges Across the
Supply Chain
1. The Need to Digitise
Although SCM has largely evolved from the days of paper-led processes, digitisation is still
a huge challenge for supply chain management. Evolving past the reliance on traditional
centralised databases, Supply Chain Managers are seeking more comprehensive and agile
technologies that can both scale with demand and give a complete overview of the entire
supply chain, from source to shelf.

2. Silos & Fragmentation

With multiple parties responsible for assets at different stages of their journey across
the supply chain, (each with their own systems and operations), it’s no surprise that
supply chain networks are littered with silos and fragmented processes. This leads to
inefficiencies, wastage and unnecessary costs.

3. Traceability Challenges
One of the biggest challenges for supply chain managers is having accurate data to show
the source, journey and location of assets across complex cross-border supply chains.
Accountability and authenticity are also a constant challenge; assets can disappear from
systems, data can be inaccurate, intentionally misleading, or even lost completely.

4. The Need for Transparency & Trusted Data

Even the most simple supply chains can involve multiple players, countries and
technologies. As globalisation continues and supply networks continue to scale and evolve,
the supply chain adds more layers. All these additional layers mean less oversight, more
opacity, less trust and more complexity when it comes to the status, source, or even
ownership of assets across the supply chain.

5. Demand Generation
Accurately forecasting demand for products has always been a challenge for supply chain
managers. But, with a global pandemic causing uncertainty and unpredictability, and a
widespread materials and labour shortage compounding issues, understanding what’s
needed and when is now more crucial than ever.

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 Leveraging Blockchain
As supplier networks across the world continue to scale, so do the
challenges. But blockchain technology in supply chain management
is solving many of these complex issues related to limited
visibility, ownership of data and data integrity, as well as enabling
collaboration on a truly global scale.

From increased visibility and accuracy of
assets as they move across the supply chain,
to trusted data on the source and provenance
of materials (not to mention greater oversight
and transparency for all key players across
the chain); blockchain solutions are helping
everyone from procurement departments, to
logistics managers, to manufacturers, lower
costs, increase efficiencies and drive greater
value for their organisations.

What makes blockchain technology

the perfect fit for supply chains?

1. Secure: As a decentralized technology, blockchain offers significantly better security and data
protection than centralised databases. With information stored across multiple nodes, there’s
no single point of failure that leaves the network vulnerable to attack.

2. Data Authenticity: With cryptographic encryption of information, and a consensus-based

approach to validating data, users can be assured that the data stored on the blockchain is
accurate and free from tampering.

3. Transparent: Blockchain technology enables unparalleled oversight for Supply Chain

Managers. All transactions are visible and traceable on chain. Records can be permissioned for
external parties, safe in the knowledge that they cannot be altered or tampered with.

4. Traceable: With blockchain and NFT technology each asset, material or product can be given
a unique identifier (digital twin) allowing it to be traced across the entire supply chain in real-
time. Audits and investigations are more efficient as authentic data is guaranteed.

5. Reliable: With networks operating across a decentralized structure, downtime is eradicated

as the threat of network attack or collapse is mitigated. Bottlenecks from centralized points are
also eliminated.

6. Cost Effective: Eliminating the reliance on expensive centralised servers means networks
can be scaled in a more cost-effective way. Manual processes are automated with smart
contracts, reducing labour costs. Plus, cryptographically secured data cuts cyber-security spend
significantly.
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Blockchain Use Cases in
Supply Chain Management
From track-and-trace solutions, to demand forecasting, provable
provenance, and more efficient execution of supplier contracts; the
blockchain use cases for supply chain management are numerous.
Not only does digital ledger technology enable the seamless and
secure sharing of information, but NFTs tied to physical assets allow
accurate tracking of assets from source to shelf.

Faster Proof of
investigations provenance

Proof of regulation Better

compliance management of
Traceability accounts payable

Accurate audit More efficient

trails product recalls

Creation of a Enhanced
shared ecosyste analytics
– streamlining including asset
processes for the location /
entire network Faster tracking accuracy
Automation
& triggered Blockchain in investigations
events Supply Chain & recalls

Management

Efficiency Transparency
Cost savings and More efficient
efficiency gains operations due
from significantly to increased
reduce paperwork Elimination of data Ability to provide sharing of
and admin silos & improved auditors and information
data management regulators with full
oversight

Enhanced data Reduction in

insights allow for supplier fraud
more intelligent and an increase
forecasting in accountability

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 End-to-end Traceability
Many of the best use cases for blockchain in the supply chain centre
around improved traceability of assets across the complex network
of participants that make up a supply chain. Being able to see
where an asset is at any one time can be crucial to the operations of
everyone from suppliers to retailers.

And while many legacy ERP systems offer this
traceability to an extent, issues around data
silos, centralised systems that are prone to
bottlenecks, downtime and maintenance are
devastating the supply chain.
Not to mention that these systems are often
used in isolation, with one company’s ERP
unable to talk to their suppliers’ ERPs. Data
is often not passed throughout the chain in a
streamlined or effective manner. Issues with
out-of-date information lead to confusion,
errors and inefficiencies, all of which can result
in costly delays for participants throughout
the supply chain. Closing the visibility and
traceability gaps in the supply chain is a huge
potential competitive advantage.
Improving Traceability with
Blockchain Technology
Blockchain solutions are revolutionising
traceability in supply chain management.
They’re enabling supply chain managers to
get conclusive data free from manipulation.
Information on an asset’s whereabouts is
accurate, verifiable, and provable — all in
real-time. All permissioned users can see
the information relevant to their needs, and
can be assured that it’s both up-to-date and
verified.
Benefits of blockchain solutions to improve
traceability also include:
• Proof of provenance
• Faster investigations
• More efficient product recalls
• Accurate audit trails
• Proof of regulation compliance
• Better management of accounts payable

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End-to-End Traceability
Blockchain technology is enabling Supply
Chain Managers to track an asset’s journey
across multiple suppliers, countries, business
partners and ports. The immutable digital
ledger facilitated by the underlying blockchain
technology means that an asset’s point
of entry all the way through to its point of
exit can be traced and tracked efficiently
and effectively. But why is traceability so
important? With end-to-end traceability
across multiple suppliers, countries and
business partners, proof of provenance can
be guaranteed. This guaranteed provenance
can protect a company’s reputation (both a
supplier’s and a retailer’s), protect against
supplier fraud, and mitigate legal or regulatory
action relating to sustainability practices.
But it’s not just provenance that’s important,
having real-time verifiable data about
shipments eliminates the costs associated
with missing shipments, can mitigate delays,
provide proof of delivery and more. Far from
being the same as traditional ERP systems,
a blockchain solution delivers cryptographic
encryption of data meaning that users can be
absolutely assured that the data is free from
manipulation or tampering. The permissioned
ecosystems that blockchain facilitates also
mean that all approved parties can have real-
time visibility of data without the need for a
centralised authority to share or verify this
information.
More Efficient Investigations &
Recalls
With a decentralised digital ledger that
provides a full and verifiable audit trail relating
to an asset’s location, its provenance, and
even in some cases its quality (when paired
with IoT sensors); investigations, complaints
and recalls are significantly more efficient and
effective. For the food industry for example,
the end-to-end traceability of ingredients
across the entire supply chain means that
sources of contamination can be identified in
seconds. This can mean faster product recalls,
and the potential of stopping a dangerous
product from ever reaching the consumer.

Traceability in Action

In 2020 Starbucks worked on a blockchain project with Microsoft aimed at proving provenance
and ensuring traceability of their coffee beans across their expansive global supply chain.
The project used blockchain technology to enable Starbucks to share its traceability data with
farmers, suppliers and customers themselves — showing a clear picture of its coffee beans from
farm to coffee shop. Customers purchasing coffee across the US were able to use a code on
the packaging to discover the source and roasting place of their beans, and whether they are
produced both ethically and sustainably (satisfying the more contentious consumer’s need to
discover where their drinks come from). Farmers were also given access to the tool, enabling
the growers to understand where their beans end up after they leave the farm. For Starbucks,
the technology enabled them to track some bags from country level, to region, all the way
back to the farmer in some cases — helping with audits, proof of provenance, and even quality
investigations.

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 Transparency, Oversight
& Visibility for all Parties
For many organisations, opaque supply chains that lack
transparency are a real challenge. Not having a complete overview
of assets or shipments as they move across the globe can cause a
number of headaches, especially when it comes to ensuring that
orgs are complying with regulations, providing data to auditors, or
simply ensuring that materials reach their intended destination.

Rather surprisingly the over-reliance on paper-
based processes is still an issue for many
Supply Chain managers. And while the BCI
Supply Chain Resilience Report shows that
the number of organisations increasing their
use of technology across their supply chain is
on the rise; this increased use of technology
often doesn’t translate to an increase in
transparency. Challenges related to siloed and
fragmented systems still remain.
Improving Transparency with
Blockchain Technology
By utilising blockchain technology within the
supply chain, SCMs across the entire supplier
ecosystem get better oversight of goods,
assets, shipments and even payments as they
move through the network. Opaque processes
caused by disparate / siloed systems become
transparent with permissioned blockchain
networks. All parties can benefit from a full
and unedited view of data related to products,
items or stock as it changes hands and moves
throughout the network.
Benefits of blockchain solutions to increase
transparency in the supply chain also
include:
• Enhanced analytics including asset location /
tracking accuracy
• Faster investigations & recalls as it’s easier to
identify the source of errors, lost shipments or
duplicate payments.
• Ability to provide auditors and regulators
with full oversight and verified audit trails –
free from manipulation
• More efficient operations due to increased
sharing of information and a reduction in data
silos
• Reduction in supplier fraud and an increase
in accountability

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Better Oversight for All Ensuring Provenance

By creating a shared ecosystem, blockchain
technology enables better oversight for all
parties involved in the supply chain. Disparate
and fragmented legacy ERP systems can be
replaced with (or at the very least can work in
conjunction with) a permissioned, immutable
database visible to all parties who have been
approved to use it. The data stored on the
decentralised ledger is guaranteed to be free
from manipulation, due to the cryptographic
encryption utilised. This mitigates the risk of
fraud or data tampering. All parties can be
assured that the data they’re seeing is up-to-
date, accurate and verifiable. This leads to
unprecedented oversight of goods as they
change hands, cross borders and make their
way through the supply chain.
Sustainability and ethical sourcing are big
challenges for organisations across all
industries, from food manufacturing to
luxury goods, fashion and more. One of the
key benefits of blockchain for the supply
chain is its ability to prove the provenance
of materials. Data on a material’s source
is recorded and cryptographically secured
in an immutable digital ledger. The data is
transparent, verifiable and provable, and
is immune from tampering. This mitigates
the risk of supplier fraud or uncertainty
around a material’s provenance. With an
effective blockchain solution, a retailer has a
transparent ledger they can use to trace their
products all the way back through the supply
chain to source easily and efficiently, through
manufacturers, suppliers, transporters
and more. Not only does this mean that
organisations can have proof that their goods
are sourced in line with ethical sourcing
practices, but also proof that the materials
they use come from sustainable sources,
limiting their impact on the environment.

Transparency in Action

One early example of implementing blockchain technology to ensure transparency in the

supply chain came from the logistics provider Kuehne + Nagel. Together with their supply chain
partners, the company utilised a blockchain solution for issuing and exchanging electronic bills
of lading across its supplier network. All information submitted via the portal is stored on the
blockchain, giving permissioned parties full access to the data while fulfilling the requirements
of confidentiality and data privacy due to the immutable nature of blockchain technology. The
solution also removed unnecessary processes and intermediaries and ensured there was no
central authority controlling the data. By providing transparent, verifiable and immutable data
across the supplier ecosystem, the solution significantly reduced the time spent on data entry
and verification, and reduced the need for printed shipping documents — generating significant
cost savings.

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 Efficiency & More
Streamlined Operations
Unsurprisingly, the level and frequency of
supply chain disruptions have increased
significantly in recent years. The BCI Supply
Chain Resilience Report highlights that in 2020,
27.8% of organisations polled experienced
more than 10 supply chain disruptions, up
from 4.8% of organizations in 2019. And while
of course the majority of these disruptions
were an unavoidable consequence of both the
Covid-19 pandemic and other external forces;
further disruptions related to inefficient
processes, lack of transparency and issues
with traceability are largely avoidable with the
right solution in place.
It’s a costly problem. Inefficient processes
and unnecessary disruptions cost the
industry billions every year. According to
analysis of industry data from Zencargo, in
the UK alone, supply chain inefficiencies and
miscommunication are costing UK businesses
over £1.5bn in lost productivity per year.
Increasing Efficiency with
Blockchain Technology
There are a number of ways that blockchain
technology facilitates efficiency across
the supply chain. From the creation of
collaborative and trusted supplier ecosystems,
to verifiable data, to real-time insights, to
transparent audit trails and smart contracts
that automatically execute once pre-set
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conditions have been met.
Blockchain technology has the potential to
significantly reduce duplicate or unnecessary
processes, its innate transparency enables
secure data sharing across multiple parties in
the supply chain – arguably one of the primary
challenges that impacts efficiency. All this
leads to significant productivity gains and cost
savings across the entire supplier network.
Benefits of blockchain solutions to increase
efficiency in the supply chain also include:
• The creation of a shared ecosystem
(suppliers, manufacturers, distributors,
retailers) – streamlining processes for the
entire network.
• Cost savings and efficiency gains from a
significant reduction in paperwork and admin
(plus reducing the frequency of human error).
• The elimination of data silos & improved
data management all of which minimise
disruptions and facilitate cohesion.
• The facilitation of automation & triggered
events (smart contracts), such as automatic
payments on shipment etc.
• A reduction in intermediaries and faster
investigations.
• Enhanced data insights that allow for more
intelligent forecasting, and more intelligent
stock control and inventory planning.
Reduction in Data Silos
Although supply chains have been
transformed and improved by digital solutions
that replace outdated paper processes in
recent years, there are still a number of
problems when it comes to the usage of
legacy ERP Systems throughout the supply
chain — significantly impacting efficiency.
While there are challenges relating to data
ownership, and centralised databases
prone to security breaches, maintenance or
downtime — often the biggest challenge for
supply chain managers in respect to their ERP
systems is siloed data, fragmented databases,
and the inability to automatically and securely
share real-time data across the supply chain.
With a permissioned blockchain network, data
can be seamlessly and automatically shared
across a multitude of key players in the supply
chain. This facilitates a collaborative supplier
network, where data is collected and shared
quickly, efficiently and securely. Suppliers,
logistics providers and retailers alike can all
track an assets journey from manufacturer
to consumer in real-time in a shared and
collaborative ecosystem. The elimination of
data silos providers a clearer picture of assets
which can lead to significant efficiency gains
across the network.
Reduced Disruption
Blockchain solutions enable a significant
reduction in the level of disruption across
the supply chain network. Decentralised
digital ledgers are safe from malicious
attack, mitigating both the risk of data loss
or corruption, and the challenges that come
from slow, centralised and fragmented legacy
systems. Disruption is also mitigated due
to increased data transparency – with all
permissioned parties able to benefit from real-
time visibility of assets and shipments on the
blockchain. Forecasting and fulfilment is also
more intelligent and more streamlined – with
solutions such as sensors on shelves triggering
automatic orders of goods from suppliers,
executed via blockchain smart contracts.
Enhanced traceability and verified audit trails
also mean investigations and recalls are faster
and easier to complete.

Efficiency in Action

Back in 2018, the Port of Rotterdam Authority, ABN Amro, and Samsung SDS collaborated
to launch a blockchain pilot with the aim of further digitising processes in the supply chain
to achieve transparency, and more importantly efficiency. The Port of Rotterdam noted that
there were a number of inefficiencies across their supply chain, with many unnecessary
intermediaries and an over-reliance on paper documentation. The blockchain project aimed
to address this by creating a paperless integration of physical, administrative and financial
streams within international distribution chains — digitising processes, reducing the number
of intermediaries and increasing efficiency. Not only does blockchain enable an effective digital
solution to outdated and inefficient processes but it also offers all parties in the logistics chain
the opportunity to coordinate activities using validated and immutable data and without the
need for management by central authorities.

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 Blockchain and IoT in
the Supply Chain
At its core, the internet of things is a web of connected devices (things),
all sending and/or receiving information to and from their external
environments. This information is captured and sent to a centralized
server to be processed, stored and accessed.
Blockchain on the other hand is essentially
a decentralized digital ledger. Data and
information isn’t held at one specific point, but
is instead encrypted and held by a multitude
of different nodes across a network. These
nodes are all working together to authenticate
and validate information continuously and in
consensus.
Combine blockchain and IoT and you get a
reliable, protected and authentic record of
data sent to and from connected devices on
an almost impenetrable network. But why is
this important? For the Supply Chain, there are
a number of innovative uses of IoT
These include:
1. In-Transit Monitoring: IoT monitors/
trackers in transport create real-time locations
of goods in transit and more accurate delivery
estimates.
2. Stock Control & Automatic Ordering: IoT
monitors on shelves, fridges or in warehouse
shelves automatically trigger alerts or orders
when stock runs low.
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3. Quality Assurance: Monitoring the
temperature / humidity etc of goods in transit
ensures food safety and quality rules are
being adhered to.
The problem with these solutions lies in
the volatility of IoT networks. IoT systems
traditionally use a centralized server/client
paradigm. Data and information is collected by
a smart device and sent to the cloud. This data
is then processed and stored, the information
can also be sent back to the IoT device.
But, with the number of connected devices
predicted to explode in coming years, the
over-reliance on centralized systems with
limited scalability will mean that networks will
struggle to cope with the demand placed on
them. Weak points and gaps in security will be
exacerbated and exposed to attack; while the
sheer volume of information being sent back
and forth (not to mention the computational
power needed to continually check and
authenticate every device on the network) will
create bottlenecks that slow IoT networks to a
grinding halt.
How Blockchain secures IoT devices

Utilizing a ‘blockchain for IoT’ solution would help overcome the

core challenges that the IoT industry is facing. Combining blockchain
and IoT would not only enhance IoT device security, but could boost
network performance and speed, at the same time as ensuring the
validity of all data collected.

1. Security: Information on the blockchain is held across each and every node in the network, as
opposed to in one centralized location. For IoT, this means the risk of data being compromised
via a single point of failure (such as a cloud server) is eliminated. A malicious attack would need
to corrupt the encrypted data held by all nodes in the network, simultaneously — an almost
impossible feat. In short, a blockchain and IoT pairing creates a significantly more secure and
resilient network.

2. Trust: With blockchain technology, the legitimacy of the data being relayed across the
IoT network can be trusted completely. The immutable and decentralized characteristics of
blockchain technology mean that the data captured and shared by connected devices is virtually
impossible to intercept and corrupt. All nodes across the ecosystem must agree in consensus
on the validity of information, and the authenticity of the device capturing this data. By pairing
blockchain with IoT, the risk of network collusion and data tampering is all but eliminated.

3. Efficiency: The smart contract functionality embedded into many blockchain solutions means
that pre-determined conditions can be implemented. Conditions that once reached, will trigger
an action (or transaction) in the ecosystem. For IoT, one such use case of smart contracts could
be to permission or provision new IoT devices joining the network. This would significantly
reduce the need for human intervention, and streamline slow and laborious processes —
ultimately driving efficiency and reducing costs.

4. Connectivity: IoT networks are straining under the pressure of sustaining billions of
connected devices. Bloated networks are increasingly suffering from downtime and poor
connectivity, causing problems for users of IoT technology. Worryingly, as the number of smart
devices is predicted to explode in the next few years, these issues will only be exacerbated.
Blockchain and IoT technology together can create a lean and scalable network where DDoS
attacks can be eliminated using the authentication capabilities of blockchain.

5. Cost: Utilizing blockchain for IoT projects enables both IoT vendors and businesses running
commercial / industrial IoT devices to be less reliant on expensive, centralized data centres.
More cost-effective scaling of networks, and a reduced reliance on intermediaries also generates
savings. Not to mention the savings gained from running an innately more secure network that
doesn’t require excessive and extensive security or maintenance provisions.

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 Blockchain Challenges
Implementing blockchain technology, especially not just in one
organisation, but across a complex supplier network does not come
without its challenges. Areas of consideration:
Areas of consideration:
1. Public vs Private
Given the business critical data that SCMs hold
about their supply chain, a public blockchain
is not a suitable solution. Organisations must
protect their data from misuse and from
their competitors. A private or permissioned
blockchain is a much more appropriate
solution.
2. Known participants
When a blockchain solution is implemented it
should permission known participants in the
network to access the data. This eliminates the
risk of parties outside of the supplier network
accessing the data.
When blockchain technology is implemented
effectively and in accordance with a solid
strategic plan, it enables innovations
and opportunities that have the power
to transform the supply chain. It enables
greater oversight, greater control and better
management of the various moving parts that
make up a supplier network. It can provide
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3. Consensus Protocols
Proof of work is a popular consensus protocol,
unfortunately the speed at which new blocks
can be added is relatively slow. Instead,
organisations should choose a blockchain with
an alternative protocol (such as proof-of-stake
or round-robin) for their supply chain solution.
4. Security of Physical Assets
When it comes to physical products being
tagged and introduced to the supply
chain Distributed applications (dApps) in
conjuction with IoT devices should be used
to automatically scan and check assets,
check data integrity and communicate this
information to the blockchain — mitigating
any human error.
real-time verifiable insight and data that helps
supply chain managers optimise their decision
making while delivering enhanced traceability
and transparency to ensure sustainability,
quality and ethical sourcing standards are met.
All of which leads to significant cost savings,
more efficient and effective operations, and a
more cohesive and orchestrated supply chain.
3 Steps for implementing an
effective blockchain solution
1. Determining how to utilise blockchain technology
It’s important to have a clear strategy when it comes to considering and implementing
blockchain solutions for your organisation. If your internal teams lack the blockchain
knowledge or experience, then working with a blockchain consultancy or service provider
can certainly help explore why, if and how, blockchain can be the right fit for your supply
chain. Breaking down the implementation into stages can also help. The onboarding and
the scope of the blockchain solution can be broken down into distinct phases, starting with
delivery and logistics tracking, before moving on to provenance or stock control.

2. Off the shelf vs custom solutions

Although off-the-shelf solutions are both widely tested and potentially faster to implement,
this doesn’t always mean that they are the best or the most cost-effective solution. A rigid
solution may be unable to accommodate the individual needs of your organisation, or that
of your supply partners. Integration may prove challenging, and it may mean changes are
necessary to existing systems. Choosing a provider that can offer custom solutions will
enable the flexibility needed to apply an effective solution across your supplier network.
Custom blockchain networks can be created to cater to your exact requirements, to ensure
that the right participants are permissioned, that transaction costs are minimised and that
the network performs reliably.

3. Ensuring integration with legacy infrastructure

As supply chains often consist of a complicated network or different suppliers, retailers,
logistics partners, manufacturers and more; there are a plethora of existing ERP systems,
tracking solutions and payment management systems within any given supply chain, many
of which work in silos. It’s important to pick a flexible and modular blockchain solution
which is both interoperable and easy to integrate into existing infrastructure.

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 Real-World Scenarios of
Blockchain in Supply Chain
Management

The following section explores several real-world scenarios of

blockchain in supply chain management that includes:

1. Blockchain in the Automotive Supply Chain

2. Blockchain in the Pharmaceutical Supply Chain

3. Blockchain in the Construction Supply Chain

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Scenario #1: Automotive
Leveraging blockchain technology in the automotive industry to
reduce lead times and generate trusted audit trails.

It’s been a difficult time for the automotive industry in recent years, with the Covid-19 pandemic
and global supply shortages suppressing the market. Yet, long-term predictions remain
optimistic. However, at a time when supplier issues and market uncertainty are still playing
havoc with supply chains, it’s more important than ever for automotive manufacturers and
retailers to reassess and optimise their supply chains quickly. In order to mitigate inflated lead
times, proactively address supply chain issues, and get a clearer picture of the state of their
supply chains.

Key Challenges Key Benefits of Blockchain Solutions

• Limited Visibility: 79% of large companies • Increased transparency and traceability
say that the lack of supply chain process • Reduction in cost and complexity
visibility is their top concern. • Immutable records
• Verifiable transactions
• Improper Management: Poor inventory
• Proof of provenance
management, lack of real-time demand
• Greater oversight & control
data and a lack of automation is hindering
• Authenticated audit trails
the supply chain.
• Limited or Contradictory Data: A wealth
of data produced by multiple ERPs, which
doesn’t always match.

In Action

OEM Supplier 2

SCM Blockchain
Solution

Supplier 1 Supplier 3

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 Scenario #2: Pharmaceutical
Leveraging blockchain in the pharmaceutical supply chain to ensure
compliance, mitigate recalls/errors and significantly enhance traceability.

As with supply chains across multiple industries in recent years, pharmaceutical supply chains
have also been severely impacted by the Covid-19 pandemic and other external market forces.
Increased demand for certain drugs, alongside shipping and logistics issues, and even labour
shortages have placed extreme pressure on business critical supply chains. In the meantime,
the counterfeit market continues to grow. For SCM’s having complete oversight, control and
visibility of ingredients or products as they move from supplier, to logistics partner, to retailer is
now more important than ever.

Key Challenges Key Benefits of Blockchain Solutions

• Counterfeit Products: Increased market
demand, global supply shortages and poor
visibility leads to increased counterfeits.
• Compliance: Ensuring compliance
throughout the pharmaceutical supply
chain is both incredibly important and very
complex.
• Traceability & Recalls: Accurately tracing
products and efficiently recalling drugs are
huge challenges for the industry.
• Traceability throughout the supply chain
• More efficient recalls & faster
investigations
• Reduction in counterfeit products
• Transparency and proof-of-provenance
across the supply chain
• Protection of patient medication and
hospital liability
• Protection against insurance fraud

In Action

Logistics & Shipping

Warehouses & Hospitals &

Distributors Pharmacies

SCM Blockchain
Solution Doctors & Health Patients
Manufacturers Professionals

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Scenario #3: Construction
Reducing lead times for materials and provide all permissioned
parties with a transparent overview of the status of materials.

With an increasing regulatory focus on net-zero targets, supplier diversity, and ethically sourced
and sustainable materials, the construction industry and its associated supply chains are under
increasing pressure to improve traceability, transparency and general oversight and control of
their supply chain.

Key Challenges Key Benefits of Blockchain Solutions

• Lack of Digitisation: The construction • Improved lead times for materials and
industry is slow to digitise with an over- equipment
reliance on paper-based processes. • Can ensure the use of sustainably farmed
or sustainably produced materials
• Unnecessary Costs: 63% of direct labour
• Better dispute resolution
time on mega-construction projects
• Reduction of wait times
is spent waiting for materials and
• Real-time schedule and deliverable
equipment.
synchronisation
• Sustainable Materials: Both customers • Improved transparency and collaboration
and regulators are increasingly demanding
proof of more sustainable materials that
are ethically sourced.

In Action

Subcontractors

Project Site
Transportation

SCM Blockchain
Solution
General Contractor Manufacturers

Project Management

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 How We Help
Protokol is a full-scale
blockchain services provider
that offers a range of services
Our Supply Chain solutions help you build
more collaborative supplier ecosystems
that offer unrivalled levels of transparency,
traceability and efficiency.

and solutions to help your
organisation benefit from
blockchain.
We take the time to understand the needs of
your organisation, your stakeholders and your
supplier network, and build a solution that
maximises benefits for your entire ecosystem.

Our Services

Digital Advisory
An advisory service focussing on identifying where and how new technology fits
into your digital transformation strategy.

Blockchain Consulting
A consultancy-led service focusing on your business’s challenges, the discovery of
blockchain innovation opportunities, and solution advisory.

Blockchain Engineering
Custom blockchain development and integration services to build anything from
PoCs to large-scale solution deployments.

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Next Steps
Book a Free Consultation About Protokol
protokol.com/contact Protokol is a full-scale blockchain
provider that offers a range of
Learn more about our blockchain solutions for blockchain services,
the Supply Chain that help increase efficiency, products and solutions.
reduce costs and enhance both traceability
and transparency. All about simplicity, our streamlined
and phased approach to service
delivery minimises complexity and
reduces the barriers to entry for
implementing blockchain technology.

Whether acting as a full solution

provider, consultative partner or
system integrator – we deliver tailored
blockchain solutions in an open and
inclusive ecosystem to help your
business turn complex blockchain
technology into tangible business
outcomes.

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 info@protokol.com

@HelloProtokol

linkedin.com/protokolsolutions

Herengracht 280
Amsterdam, 1016 BX
Netherlands

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