Have you ever wondered why your online orders took longer than expected to arrive? Or where do the goods you order come from? Shipment delays affect customer retention heavily. According to a report, 69 percent of customers are less likely to purchase from a retailer if their item is not delivered on time. As per an estimate (numbers may vary by industry), businesses spend anywhere between five to twenty-five times more to acquire a new customer than retaining an existing one.
Shipment delay is one of the many factors contributing to the supply chain inefficiencies globally. In a typical supply chain, there are more than 40 points of contact between different entities. In the present scenario, shipping a package from point A to B involves several intermediaries and hundreds of pages of documents. All these factors contribute to the inefficiencies in the global supply chain. But how big is the magnitude of these inefficiencies?
Supply Chain Crunch
According to a study by the World Economic Forum, reducing supply chain inefficiencies could increase global GDP by 5 percent and total trade volume by 15 percent. This translates into a $2 trillion boost to the global economy. Another study suggests that supply chain disruptions may have caused up to $4 trillion in lost revenues.
The global supply chain crisis has magnified amid the pandemic. According to some reports, the supply chain crunch may extend beyond 2022, SMEs and small businesses are the first ones to get affected. Shifting from obsolete practices to automated operations is mandatory to tackling the supply chain crunch and blockchain is playing a key role in this transformation.
Several leading businesses across industries have adopted blockchain to cut their losses by transforming their supply chain. According to Forbes, FedEx has integrated blockchain to improve traceability and transparency. DeBeers is using the blockchain’s tracking technology to monitor the source and progress of natural diamonds….
