The supply chain sector is a multi-billion dollar industry and works as the backbone for keeping multiple industries afloat. However, in its current form, the industry is reeling from multiple problems ranging from multiple actors with different technical capabilities, communication barriers, and most importantly the documentation process. According to one estimate, almost 20% of costs incurred by the supply chain industry go towards documenting the process as most of it is done in the old-age process. The global trade finance gap i.e the difference between the demand for and supply of trade finance-has reached $1.6 trillion.
The supply chain business despite being a multi-billion dollar industry doesn’t seem to have found a way to streamline several processes that eventually leads to billions in losses that can be easily saved with change in the documentation process. According to one estimate, nearly $7 billion worth of fresh food spoils before it even reaches consumers in North America due to sluggish supply chains. This could even prove critical in a time like these when most of the world is plagued by the coronavirus.
Just like any other industry which has changed with time, the old-age supply-chain business also needs a revamp for better efficiency and the answer lies in Decentralization and more specifically DeFi, the popular use case to arise out of the crypto world in 2020. DeFi makes use of smart contracts with self-executing capabilities that would not only streamline the documentation process but would also decrease the human error factor significantly. Obortech is one such company that is exclusively working to revamp the supply chain industry with the help of DeFi solutions.
Obortech has developed a smart hub based on blockchain technology that integrates Blockchain and cloud-powered communication hub with a tamper-proof, unified, and online document exchange system. Obortech has eliminated the core cause of inefficiency in the current supply chain sector, i.e different actors with different technical capabilities leading to a break in the workflow. The DeFi solution provider has developed a product that integrates real-time data and tracking of products while ensuring that it can be used by anyone without the necessary IT skills.
The smart hub would act as a universal platform for different clients in the supply chain industry. They can integrate it within their current systems through an API and seamlessly use it to upload goods data on the blockchain and track their supply. The IoT devices would provide real-time tracking that would lead to better visibility of shipments. They can then transmit data to the Smart Hub dashboard, and provide all participants with identical information simultaneously.
Obortech has also partnered with some of the top logistic companies across Mongolia, Australia, and Europe to collect and feed the smart hub with the most reliable data for better efficiency. The smart hub would act as a front end for these supply chain firms and using it would be like using any other software application on their phone as the focus is mainly on offering a unique and easy to use UI.
The smart hub would act as any other decentralized platform where the data flow on the platform would come from multiple clients. Before joining, every new member in any supply chain network of the Smart Hub needs to be invited and approved by existing members of that supply chain network in the Smart Hub. Also, if any member in the network behaves badly or inserts false information multiple times, that member’s score/rating in the network will be downgraded by other members.
The use of DeFi in blockchain could be revolutionary and help elevate an industry that has already gained a lot from the use of blockchain technology. Some of the top food and beverage companies including Nestle and KFC have already experimented with blockchain technology with great success which helped them track their supply right from the farms to the stores. Thus using the same tech with a better use case in the form of Defi could surely help the Supply Chain business to save billions of dollars in miscellaneous costs.
Obortech is conducting an Initial Exchange Offering on Probit. Join OBOT token IEO on Probit.
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