Blockchain allows suppliers verify their own invoices without having to depend on the customer, as the data belongs to both parties
With blockchain being implemented as core technology, it is expected to ease many workings including the supply chain. Not to mention, supply chain plays a critical role across industries from retail to fashion and lifestyle among others. In a conversation with FE Blockchain, Vaideeswaran Sethuraman, founder and CEO, Param Network, talks about how the company is trying to revolutionise with the implementation of blockchain. (Edited Excerpts)
Could you explain how you are redefining the supply chain through blockchain?
By definition, a supply chain means more than one enterprise coming together. However, there is no clear backbone available for these enterprises to share data in a digital format. This is where blockchain can play a very big role in establishing a backbone for all enterprises to come onto a network and share information securely. Blockchain is a peer-to-peer network, which means there is a very good methodology established for securely sharing information without conflict and without trusting each other. This is why we believe that blockchain is the best technology to create a fundamental backbone for enterprises to share information using a very trusted network.
How will blockchain upgrade the existing technology, and do you think it will solve the trust issue in terms of data?
Just because a supplier is part of a vendor portal does not mean that a transformation backbone has been established between the two companies. The lack of standardisation means that suppliers must log onto multiple portals to download and upload files, making it difficult to bring digital transformation and automation. This is where trust is broken because data sits on the customer’s premises, and suppliers do not have the ability to prove their own invoices. Blockchain technology allows suppliers to independently verify their own invoices without having to depend on the customer, as the data belongs to both parties. This creates a good audit trail and assurance that the data is non-temporal, meaning decisions can be made based on the data.
That’s very interesting. How do you see the future of supply chain with blockchain?
With blockchain, we see a future where there is a single source of truth for all transactions between enterprises. This will enable better decision-making and collaboration between companies. Additionally, the ability to share information in a trusted network will significantly reduce the risk of fraud and errors, improving the overall efficiency of the supply chain. We believe that blockchain will play a critical role in the future of the supply chain.