Samsung: Another Blockchain Convert

Samsung: Another Blockchain Convert

Samsung Electronics Co. is planning to cut shipping costs by 20% with the use of a blockchain ledger system to track its global shipments.  The blockchain system reduces documentation costs, shipping paperwork, and time to coordinate with port authorities.

(Check out previous OM in the News posts on blockchain’s use in increasing food safety and transparency, and reducing counterfeit goods and forced labor.)

This post is based on the Bloomberg article, Samsung Jumps on the Blockchain Bandwagon, by Sam Kim, April 15, 2018. Image source: Shutterstock / Gorodenkoff.

Discussion Questions:

1. What benefits does the blockchain ledger system have for Samsung’s global operations?

Guidance: This ledger system will enable Samsung to track global shipments worth tens of billions of dollars a year, cut shipping costs by 20%, reduce lead time between product launches and shipments, and better respond to competition and customer demand.

2. What impacts does blockchain have on information management in manufacturing supply chains?

Guidance: Transactions are recorded, verified and shared more securely, efficiently, and cost effectively.

Facebook
Google+
http://ominthenews.com/tag/technology/page/2">
Twitter
Blockchain for Traceability and Transparency

Blockchain for Traceability and Transparency

April 23, 2018

Supply chain management continues to lack traceability and transparency due to analog gaps and proprietary technologies.  Blockchain technology offers a needed solution to resolve these issues.

With blockchain, transaction data cannot be manipulated. Public ledgers throughout the supply chain create visibility.  Therefore, traceability and transparency issues are more adequately addressed.

Blockchain technology can also decrease total costs in the supply chain by removing costs associated with lost or stolen inventory, and use of unethical practices.

This post is based on the NASDAQ post, Using Blockchains to Increase Supply Chain Efficiency, by Reuben Jackson, April 9, 2018. Image source: Shutterstock / ElnurSee previous posts on OM in the News for more on how blockchain can increase tracking sources of foodreduce counterfeit products, and reduce forced labor.

Discussion Questions:

1. What would prevent a company from embracing a blockchain solution?

Guidance: Students should consider competitive advantages that may be compromised, loss of profit margins due to visibility, impact on unethical business practices for companies that rely on such poor behavior to compete globally.

2. How would you implement a blockchain solution for contract manufacturers in the fashion industry?

Guidance: Continue reading

Facebook
Google+
http://ominthenews.com/tag/technology/page/2">
Twitter