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The global supply chain sector is in a bit of a crisis as a result of the pandemic, shortages of supplies to consumers and shortages of workers around the world.
The Problem
Empty shelves, panic buying all the inventory left. Both common sightings during this crisis. With terminals around the world shutting down due to the fear of another wave. As the world is gradually getting over the pandemic, the supply chain industry is attempting to reorganize back to pre-COVID levels, due to parts of the world temporarily isolating and going offline.
Due to the demand of online shopping rising over the past year, with the equivalent of 50 million new participants of the economy. The industry has started playing catch up with this new level of demand. With the growth in demand of online shopping due to the pandemic, this has not only created the mess within supply chain & logistics we see today of backlog, but brings up another problem. The possible likelihood of rising costs in the supply chain industry with all the demand and lack of workers.
With limited space within warehouses, and the limited workers due to a labour crisis. It seems there needs to be an alternate solution to get this essential industry of the economy back on the right tracks.
So what is VeChain? VeChain is a native blockchain platform running on a Proof of Authority consensus, which aims to improve the way our global supply chain industry is today, through the ability of processing inforation along distributed LEDGER technology. By building a trustless ecosystem for business and logistics for information to freely flow through without the need of a middleman, VeChain is able to build a system which improves our current global commerce system in terms of, transparency and efficiency.
VeChains technology ranges from verifying authenticity of products through the information of every step of the product, from production, to shipment, to a delivered product through their blockchain and DLT. Utilizing VeChain, consumers can check the origin of their goods, along with the quality and care during transportation, all the way up to the point its at their door, without the need for a middleman to update each step of the process.
Aside from supply chain and logistics processing, VeChain can also impact the food industry, ESG, along with black markets. Consumers can track the process of their food, from location and time of when it was originally produced, to temperature and conditions of storage, quality of handling, to the moment ownership transfers to the consumer once they’ve paid for the good.
Black markets are a very broad term nowadays, the sales of counterfeit items have become a rising issue. While VeChain can’t solve all these issues. VeChain can be utilized to track the authenticity of items to ensure they are not only produced in an ethical environment, but also whether the location of origin and production was from a location for designated for production of such goods for authentication.
The Solution
So how will VeChain solve this mess we’ve created? Well realistically, this issue will be an issue that will be required to be fixed with sufficient employment. With amount of backlog that has been building up over the coming months, the industry will need people to step into the labour force, and into the supply chain industry.
Well then what’s the relevance of VeChain in this situation? While VeChain can’t physically assist in unclogging the jam within the industry. What VeChain can assist with is the automation of tracking of these packages, while also allowing for transparency between consumers and suppliers. While this doesn’t directly solve the problem. It can save supply chain firms a substantial amount of time and capital by not having to allocate a worker to manage the process of updating each step of every individual shipment during the aggregate procedure of shipment, but rather concentrate their focus to creating a solution to accelerate the rate at which shipments can be processed at.
With partnerships like BMW, Walmart China, and even Louis Vuitton, which VeChain CEO, Sunny Lu worked for prior to starting up VeChain. The potential VeChain has to positively impact not only the supply chain industry, but how we utilize and make use of the data we create.
About Me
Hey, thanks for taking the time to read my work. I’m your average 20 year old student, currently in school for Economics and Finance. Some of my hobbies consist of sports, working out and staring at price charts.
I initially began my interest in the crypto space after frustrations with legacy markets. From the second I read about the Ethereum ecosystem, I fell in love. An entire ecosystem built on one platform that anybody can access? Unheard of, until now.
With how fast this space is developing, I try and find projects within this industry that show promise and potential to disrupt our modern world. All this fundamental analysis not only helps me better understand these projects better, but hopefully gives you guys some newfound information!
If there are any projects or subjects you’d wish to suggest me take a look into, I’m always available on
