4 reasons to apply Blockchain for Supply Chain in Retail industry
Blockchain technology helps data security, secure payments, traceability of products, automatically accumulating points for users. These are all outstanding features and can change the whole traditional retail industry today.
Many retailers around the world are testing and applying blockchain to their supply chains such as Walmart, Amazon, Unilever or Nestle. By integrating Blockchain into daily operations, businesses can create new opportunities for themselves and customers, thanks to the following benefits:
Blockchain secures customer’s privacy
For a business, a data breach means that customer information can be compromised. At that time, the prestige of a brand was also at risk of collapse. In retail industry, customers often provide personal data to the companies they interact with. The enterprise then puts the data into its platform system, but this also poses a potential security risk.
By using Blockchain technology, retailers can store important information in a decentralized directory, keeping the data in an invulnerable state. Businesses can restrict who can access files with mutual consent.
Blockchain encourages customer’s loyalty
Customers do not often remember points they have accumulated by month or year from membership programs. With blockchain technology as a platform, retailers can offer digitized points. With this digitized points, customers can use it to invest or pay for any item they want.
Customers will often return if they know their points can add value. In addition to improving the experience and encouraging consumers to return, Blockchain system also allows retailers to attract a younger generation of shoppers who are very interested in blockchain technologies.
Blockchain makes customer’s payment easier
Blockchain is best known for its secure trading system. Relying on this technology, retailers make the digital payment process easier, enabling cross-border payments and expanding e-commerce payment options to bring more options to customers. Blockchain also provides electronic memorandum for processes to proceed smoothly, instantly and automatically.
Customers today are often very interested in the origin of the product and their impact on the environment and ecosystem. So being able to know the entire supply chain process for an end product in the customer’s hands is important. With Blockchain technology, information is irreplaceable, the entire process is displayed on the system, thus providing a step-by-step panorama of a process chain. Therefore, customers and retailers can track goods at each link in supply chain.
For example, a supermarket that uses the blockchain system can tell you who made the packaged salad you’re holding and where they made it. In addition, technology also gives you specific information about the origin of each ingredient to make that salad. This can help strengthen the relationship between retailers and customers as well as reduce the risk of counterfeiting with some products of valuable goods, pharmaceuticals or antiques
Given the importance of applying Blockchain to the Supply Chain, it is not difficult to understand when Lina was received and signed a cooperation agreement by leading agricultural corporations.
After one year of implementation, Lina Network is proud to be the pioneer in launching Blockchain application for traceability of Supply Chain. Stay tuned for the next series of Blockchain technology.