Company F is a local company positively exploring the adaptation of blockchain technology for the fashion industry. Blockchain technologies enable systematic cooperation in an entirely distributed and decentralized manner, capable of managing social interactions on a large scale and dismissing traditional central authorities1. Using blockchain, this company would like to achieve the following results: (1) Auditability – a full audit trail of data, creating an everlasting means of record keeping along a supply chain; (2) Immutability – timestamped and tamper-proof transactions, providing a single source of data integrity; (3) Smart contracts – continuous real-time tracking of data by using smart contracts across the supply chain; (4) Disintermediation – peer-to-peer interactions with digital signatures.
With the development of the fashion industry and new technology, the company has changed its business model from OEM, ODM to supply chain risk management. It starts building a system with transparent information, quality standards, and inspections and so on, and bears the risks during the business processes. The entire process of an order through its system is simply presented as follows:
Through the company platform, buyers make requirements; materials suppliers and manufacturers propose different quotes accordingly. Based on the quotes, different plans are automatically formed and sent to buyers. The buyers can choose appropriate plan and place order directly, and involved parties including materials suppliers, manufacturers and transporters can complete relevant tasks. The platform makes the entire process of pricing and service providing transparent.
Company F is exploring a novel digital business model with blockchain and setting an example of how to use a new technology to solve the problems in the traditional fashion supply chain. Will this become “Uber” in the fashion industry?
- https://en.wikipedia.org/wiki/Blockchain [05-10-2018]