Although blockchain technology is closely associated with cryptocurrencies such as Bitcoin, the technology is also having a positive impact on the supply chain.
Packagers are utilising blockchain technology to improve package tracking, increase security, and better meet the demand for supply chain transparency.
Blockchain is a decentralised distributed ledger that operates on a P2P (peer-to-peer) network, allowing users to create “blocks” that record activities and transactions.
There are a variety of ways in which blockchain might have an impact on the packaging sector. According to current estimates, the blockchain might have an influence on three areas of the packaging business.
Those three locations would be as follows:
Tracing and tracking deliveries Raising customer awareness Protecting brands from counterfeit manufacture
It has been stated that blockchain technology is primed for fast adoption as technological advancements appear to make it easier to gain access to the technology.
Historically, keeping track of packages was accomplished through the use of physical papers and security mechanisms that travelled with the items. Blockchain disrupts the status quo by enabling packaging to connect with the web, end consumers, and the supply chain as a whole.
Instead of packing slips and bills of lading providing assurance, serial numbers, barcodes, RFID, extra security features, and other processes are now utilised to express authenticity. As technology continues to develop capabilities, QR codes and smartphones are playing an increasingly important role in facilitating direct connection between customers and product packages.
Product packaging performs a variety of services, one of the most important of which is to inform consumers. Consumers’ need for product knowledge and provenance appears to be insatiable, even as the push for greater openness continues to gather steam. According to some estimates, as much as 50% of purchasers desire more information about the things they purchase.
The blockchain is enhancing labelling data in response to customer demand, providing additional chances for businesses to communicate with purchasers.
Furthermore, blockchain technology improves the efficiency of packaging traceability in the food supply chain. It might potentially be used on packages in supply chain applications to send electronic data interchange (EDI) codes and other information.
Since the checkpoints have gone paperless, any product-related information that is necessary may be retrieved on the spot, the process has become more efficient.
Whereas it used to take days or even weeks to hunt down the source of a food-borne disease, today it can be done practically instantly by scanning a barcode or QR code. It’s also worth emphasising that, with blockchain, records can never be tampered with retrospectively, which means that all of the information on the ledger is automatically authenticated.
End consumers will soon be able to validate every one of your brand’s promises by just pointing their phone at your packaging if they have access to the scannable codes. Blockchain, more so than any other technology before it, is a tremendously beneficial tool for establishing consumer confidence in a business.
Because blockchain is driving the supply chain, your packaging takes on the role of a new kind of brand ambassador—one who is not tied to corporate claims or the bottom line.