New tech on the block
Planning for blockchain in the Retail and Consumer Packaged Goods industries
Our new insight report explores the potential for blockchain technology to underpin a transformation in the retail and consumer packaged goods value chain. While we fully expect blockchain technology to achieve widespread, mainstream adoption in these sectors sooner rather than later, we firmly believe that long-term, sustainable success is only possible through careful planning and prioritisation of work programmes.
The ability of blockchain to track, trace, and authenticate products, record contracts, guarantee the movement of information and record transactions means it can be put to use across the entire value chain, with the benefits consequently being passed on to the consumer in the form of savings, increased trust and transparency, and safer and higher quality products.
In this report, we examine the implications and assess the value of specific blockchain use-cases, analysing how they could be used to resolve key business issues.
Practical applications of blockchain
We propose three use-case groups that distinguish between the reasons for the blockchain application. These include:
- Consumer – Improving and protecting the consumer experience
- Supply-chain – Improving process efficiencies across the supply chain
- Payments and contracts – Improving transaction processes and ensuring the validity and implementation of contracts
Assessing opportunities and responding to blockchain
It is important for businesses to understand how much blockchain can generate additional commercial value and how it aligns with the overall business strategy. Depending on the strategic objectives of the business, there are four segments of impact:
- Trial projects - Opportunities that have a lower immediate value relative to others due to a narrower blockchain application
- Explore - Opportunities relative to trial projects in terms of value but similar complexity (and cost), offering greater value relative to investment in the short-term
- Wait and see - Opportunities that currently offer a lower value relative to other blockchain opportunities and are more complex (and costly) to implement
- Plan - These offer the most attractive opportunities in terms of potential value
Using blockchain as a tool to achieve your strategic goals is key to seeing a tangible value‑add from this emerging technology. Consumer focused businesses that have the resources and capabilities should be considering how they can harness the power of it.