What are the applications of NFTs in supply chains?
Real-time supply chain tracking, settlement, and documentation can not only create more efficiencies for businesses, but also help them deliver better financial products they can rely on for their operating capital.
NFTs create an immutable and transparent digital record. What this offers the supply chain industry is a transparent trail where everyone in the ecosystem would have complete visibility. Therefore, right from the production of the raw material for the goods until they are displayed on a website or physical store, the use of NFTs will provide traceability and help in supply chain management.
Phygital NFTs have proven to be very useful when paired with real-world assets. Using NFTs to trace a good or manufactured product back to its source can add credibility to the product. It can also offer consumers a method to understand the source of the product they are looking at and choose one based on the providence of the product.
In addition to traceability, NFT Secure Sourcing and NFT Secure Warehousing will help data scientists gain valuable insights into product journeys at the individual level. This granular data will help analysts, business owners, and investors assess supply chain inefficiencies. This will help define new Service Level Agreements (SLAs) with supply chain service providers and monitor them to meet those SLAs.
Furthermore, the integration of NFTs and digital twin technology into the supply chain will enable companies to automate payments through the system and make instant settlement once goods are delivered. Multiple checks and balances before transferring payments for finance teams would be a thing of the past once real-time traceability is enabled.
Real-time tracking will also help finance products such as trade finance, where the status of goods can be used to borrow working capital by supply chain stakeholders. Supply chain managers with an enhanced vantage point can intervene at the right point of control in the event of congestion or bottlenecks. This makes supply chains more efficient, which translates into better revenues and lower costs.
Real-time supply chain tracking, settlement, and documentation can not only create more efficiencies for businesses, but also help them deliver better financial products they can rely on for their operating capital.
NFTs create an immutable and transparent digital record. What this offers the supply chain industry is a transparent trail where everyone in the ecosystem would have complete visibility. Therefore, right from the production of the raw material for the goods until they are displayed on a website or physical store, the use of NFTs will provide traceability and help in supply chain management.
Phygital NFTs have proven to be very useful when paired with real-world assets. Using NFTs to trace a good or manufactured product back to its source can add credibility to the product. It can also offer consumers a method to understand the source of the product they are looking at and choose one based on the providence of the product.
In addition to traceability, NFT Secure Sourcing and NFT Secure Warehousing will help data scientists gain valuable insights into product journeys at the individual level. This granular data will help analysts, business owners, and investors assess supply chain inefficiencies. This will help define new Service Level Agreements (SLAs) with supply chain service providers and monitor them to meet those SLAs.
Furthermore, the integration of NFTs and digital twin technology into the supply chain will enable companies to automate payments through the system and make instant settlement once goods are delivered. Multiple checks and balances before transferring payments for finance teams would be a thing of the past once real-time traceability is enabled.
Real-time tracking will also help finance products such as trade finance, where the status of goods can be used to borrow working capital by supply chain stakeholders. Supply chain managers with an enhanced vantage point can intervene at the right point of control in the event of congestion or bottlenecks. This makes supply chains more efficient, which translates into better revenues and lower costs.
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