Last Updated on February 9, 2023 by newseditor
Blockchain improves processes in various industries and regions, including the Middle East Supply Chain Industry. For several reasons, blockchain technology is becoming increasingly important to the Middle East Supply Chain Industry. Firstly, it can provide a secure and transparent way to track the movement of goods throughout the supply chain, which is particularly important in the Middle East, where there are often multiple intermediaries involved in the trade of goods.
Secondly, blockchain can help streamline and automate many processes involved in supply chain management, such as invoicing and payments. This can lead to significant cost savings and efficiency gains for regional businesses.
Additionally, blockchain can help to improve trust between different parties in the supply chain, such as manufacturers, distributors, and retailers. Overall, blockchain can revolutionize how businesses in the Middle East operate and manage their supply chains, making them more efficient, secure, and collaborative.
Blockchain technology can greatly improve the efficiency and transparency of supply chain management in the Middle East. By creating a decentralized, tamper-proof ledger of transactions, blockchain can enable real-time tracking of goods as they move through the supply chain, from origin to destination. This can help reduce the risk of fraud and counterfeiting while increasing visibility and accountability throughout the supply chain. Additionally, blockchain-based smart contracts can automate many of the manual processes involved in Middle East Supply Chain management, such as invoicing and payments, further increasing efficiency and reducing the potential for errors. Overall, blockchain has the potential to bring significant benefits to the Middle East supply chain industry.
The Middle East Supply Chain Industry
The United Arab Emirates (UAE) and Saudi Arabia will likely become global leaders in supply chain technology. Government programs and rising internet use have benefitted the supply chain structure. Robots in modern warehouses are increasing, and businesses are experimenting with drones and autonomous vehicles for effective and quick delivery. Improving the time to market, avoiding contactless delivery, and increasing efficiency are a few main reasons for switching to a digital supply chain. For supply chain operators, the move toward digitalization will also open up new avenues for growth that might favor costs, working capital, and income.
Blockchain, the Internet of Things (IoT), analytics, and robots are being used more extensively by KSA and the UAE to promote themselves as a center for international commerce and investment. Blockchain is also being utilized to address issues brought on by failed supply chains. In the logistics sector, technology has significantly increased the effectiveness and dependability of supply networks. For instance, the World Economic Forum (WEF) launched a Blockchain toolkit for supply chain management in partnership with organizations, including the Abu Dhabi Digital Authority, Dubai Future Foundation, and Saudi Aramco. According to the Dubai Future Foundation (DFF), augmented reality, exoskeletons, companion robots, unmanned ground vehicles (UGVs), unmanned aerial vehicles (UAVs), the Internet of Things (IoT), and 3D printing will all play bigger roles in the future.
Emirates NBD introduced a digital supply chain finance platform for its corporate and institutional customers in 2020. The bank’s smartSCF platform is anticipated to provide firms in the UAE access to a collection of automated, integrated solutions to improve and streamline supply chain partnerships while maximizing working capital and lowering transaction costs. With the platform’s help, clients may increase their cash flow efficiency while their suppliers profit from early, competitively priced payments of their bills without the requirement for collateral. With the digitalization of supply chain management and finance being one of the top goals for corporate customers across sectors, Emirates NBD’s smartSCF technology satisfies this rising requirement.
Incorporating blockchain in the Middle East Supply Chain comes with a lot of pros. Nonetheless, more work still needs to be done to fully enjoy all the benefits of blockchain. Many middle east countries need to adopt blockchain solutions in their supply chain.