Although not all applications are equally feasible, blockchain can benefit multi-party processes through increased transparency, faster transactions, and cheaper costs. According to a recent prediction, the blockchain market is expected to develop at a compound annual growth rate (CAGR) of 56% to reach 943 billion dollars by 2032. One Despite the enormous promise, CEOs are concerned because blockchain solutions differ in maturity across industries.

1. Hitachi

Business challenge:– Hitachi’s procurement procedures, which required overseeing contracts with over 3,500 businesses, were inefficient and security-related. The old paper-based method took a long time and was prone to mistakes.

Initiative:– Hitachi used Hyperledger Fabric to deploy a blockchain-based, paperless procurement system. The goal of this system was to improve security and expedite contract administration.

Result:– Hitachi was able to manage at least one contract case per company each month thanks to the new system, which increased productivity and decreased the possibility of fraud.

2. Marco Polo Network

Business challenge:– Both importers and exporters face substantial risks while engaging in international trade. In the event that an importer makes an advance payment, the exporter could get the money without actually delivering the products. However, the importer may decline to pay after receiving the shipment if the exporter consents to payment after delivery.

Businesses frequently work with banks and other financial institutions, which provide instruments like letters of credit, to mitigate these risks and promote secure trade finance. Although these instruments aid in ensuring payment, they also add costs, delays, and human error to global supply chains, particularly in sectors that depend on large volumes of cross-border transactions.

Initiative:– A blockchain-based solution was implemented by Marco Polo Network4 with the goal of modernising trade finance by lowering reliance on middlemen and boosting transparency. The network uses supply chain ERP systems and blockchain technologies to facilitate data sharing between importers and exporters. It increases transaction speed and confidence by automating the generation of irrevocable smart contracts that enforce predetermined requirements, like automatic payment after products are valid.

This blockchain platform offers business value not only to trading partners but also to financial institutions and other parties that gain from increased visibility and decreased complexity by establishing a shared audit trail and lowering dependency on manual documentation.

Those organisations nevertheless gain from the enhanced openness and data integrity the solution provides throughout the blockchain ecosystem, even while it can function independently of third parties.

Results:–

1. Improves the buyer-seller working capital cycle by utilising safe and automated payments.
2. Reduces human mistake by using smart contracts to automate the transaction settlement process.
3. Streamlines processes for improved supply chain management by digitising trade documents and establishing an unchangeable audit trail.

3. Renault 

Business challenge:– One of the industries with the highest levels of regulation is the automotive sector. For example, Renault is subject to more than 6,000 quality and regulatory requirements in a number of areas, such as:

1. Safety regulations
2. Geometric features
3. Material quality
4. Environmental requirements

A car must fulfil numerous internal and external compliance requirements before it can be put on the market. Changes to regulations must be shared with all parties involved in the supply chain, including direct suppliers and suppliers’ suppliers. More transparency and a system that could efficiently manage compliance across several parties were required due to this complexity.

Initiative:– In order to overcome this obstacle, Renault5 collaborated with IBM to create the first end-to-end distributed blockchain platform with extended compliance in the automotive sector. Complete component traceability is guaranteed by this blockchain-based technology, which also facilitates internal and external regulatory standard compliance. The platform lowers the risks associated with fragmented or out-of-date compliance data by improving supply chain visibility and establishing a single source of truth.

Results:–

1. Cut non-compliance-related expenses by 50%
2. Reduced the cost of managing non-quality and non-compliance issues by 10%
3. Encouraged Renault to increase its use of blockchain technology to monitor the carbon footprints of its products and assist with recycling, thereby supporting the company’s circular economy and ESG objectives.