I have been writing and researching about Blockchain tech for some time now. I am not an expert and still hovering at the learning stage aro...
The Blockchain technology allows you to create secure and permanent digital records of an asset’s origin and characteristics across its entire supply chain. Blockchain benefits the industries and enterprises that face difficulties and strict requirements in provenance tracking and traceability of their products.
Blockchain technology is advancing in the jewelry industry at a great pace, and this means that traceability is going to be at the core of the jewelry supply chains. From mine to the refinery, to alloy manufacturer, to the production company, the retailer, and on to the consumer. This type of transparency in the supply chain would assure consumers about the authenticity of the jewelry they are purchasing and would act a huge relief for the consumers as well as for the jewelry businesses globally.
Key challenges in the Jewelry supply chain
The supply chain in the jewelry industry is very complicated and includes several stakeholders such as miners, certifiers, gemological scientists, shipping managers, retailers, insurers, and many others. Facilitating efficient sharing of information is a difficult process as the complete information is not shared at every level, thereby creating pitfalls in the supply chain.
Counterfeiting and frauds can occur frequently as the jewels and other precious metals change hands several times in the entire supply chain. Due to the scale and the size of the jewelry industry, it requires enterprise-wide efforts to make the jewelry supply chain more transparent and provide consumers with the guarantee they demand and deserve.
Heated debates about the provenance in the jewelry industry are also common, and to counter that, numerous jewelry manufacturers have started implementing and executing Blockchain technology solutions.
Why Blockchain technology?
This distributed ledger technology establishes a shared, immutable record of transactions that take place in a network shared by several stakeholders. By applying Blockchain technology to digitize the process, a new form of command and consent is introduced into the flow of information.
Here are a few ways in which Blockchain technology can serve as a boon for the jewelry industry!
Establishing trust with consumers
Counterfeiting precious metals, gems, and jewel certificates are few of the major concerns in the jewelry industry. Only experts can differentiate between the synthetic and original metals, and therefore, bringing an end to this issue is essential. Blockchain- a breakthrough technology is serving the same issue and is putting an end to the consumer’s mistrust.
Right from the mine to the final destination, every transaction in the jewelry supply chain is recorded in the form of blocks, and each block is contained together to form a complete record. With the Blockchain technology, buyers can scan the QR code and track the whole supply chain right away.
This secure and transparent record tracking makes it impossible to manipulate the documents, information, or transaction record.
Enable secure and transparent supply chain
Blockchain technology can help you to transfer data securely and efficiently. Taking into account the current scenario, people are living in a state of lockdown, and the jewelry industry is one of the many industries facing its adversities.
Because of that, jewelers need to analyze their inventory accordingly and create digital platforms to sell the same. They can sell jewelry online by creating such platforms and get instant payments. Jewelers can also create digital or Blockchain clones of the jewelry as a guarantee, and the consumer can exchange the Blockchain clone for a physical product anytime, over a few months.
Handling trade finance efficiently
Blockchain technology provides all-in-one finance and a single platform for the jewelry industry. You can easily manage all your financing and cash flow requirements with Blockchain technology. Digital signatures and smart contracts are the two major technologies leveraging Blockchain technology to manage the trade efficiently.
Through this technology, banks, logistic providers, and jewelers come together to handle the trade efficiently and enable easy tracking of this entire process.
Provenance and Inventory tracking
Provenance and mapping existing inventory are two main factors of trust and transparency in the supply chain. Jewelers should be able to display the existing inventory online, and access to the inventory should be provided to the consumers. This would enable trust for the consumers.
Blockchain technology also helps to put all the invoices together on a single platform. The supplier and the vendor both can seethe invoice, hence ensuring transparency.
In conclusion, we can see the advantage of Blockchain technology for the supply chains- and in this case- the jewelry supply chain. Building the trust of a consumer is extremely critical to generate a relationship of a lifetime. But as the consumers continue to demonstrate the growing concern for the origin of all the things- from apples to diamonds- this industry must also be prepared to offer traceability as an option.
Blockchain is the next big wave in the world of the technological revolution that the world would witness. Want to ride along with this wave? Debut Infotech is a one-stop-shop for all your Blockchain supply chain solutions.