Solutions

Blockchain & Supply Chain Solutions

Traditional Supply Chains

Supply Chains with Blockchain

Blockchain use cases in logistics 

Provenance 

In logistics, provenance refers to a timeline of changes in the ownership, custody or location of an object. It could be described as an audit trail and aims to make sure every shipped good has a digital “passport” that proves its authenticity. These passports include data about where and when the product was made, as well as the route it has travelled.

The wine trade offers an example of how blockchain can be applied for provenance. The sale of fake alcohol is a major problem in this industry because it can directly harm people’s health. Provenance makes it possible to trace the location of the winery that produced the wine, while also listing all participants – such as regulators, distributors or retailers. This addresses the flow of counterfeits, while also lowering costs and eliminating duplicated tasks. It also enables customers to obtain information about the origin of the product.

Payments and invoicing 02 

Invoicing and payments related to logistics functions often involve manual and paper-based processes because the companies involved each keep separate records. Matching invoices with payments due or credited is a time-consuming task for companies. Blockchain can store and share digitised records, while also creating smart contracts that automatically handle invoices and payments to shorten processing times and ensure accuracy.

For example, a connected pallet can automatically transmit a confirmation of the delivery time or condition of the goods. The blockchain system then automatically verifies the delivery and makes any appropriate payments. This significantly increases efficiency and trust.

Shipchain is another example of blockchain in this context. It is a platform for tracking and tracing shipments, and provides a solution based on smart contracts that can be used for making payments. It offers an open Application Programming Interface that can be integrated with freight management software, as well as features that allow users to store information like geo waypoints.

Digital documentation 

Combining blockchain with the Internet of Things(IoT) can enable intelligent logistics contracts. This is possible when digitised documents (e.g. bill of lading, certificates, invoices, pre-advice) and real-time shipment data are embedded into blockchain-based systems.

Digital documentation and smart contracts using blockchain are already in place at the ports in Antwerp, Rotterdam and Singapore. For example, physical, administrative and financial streams are now integrated through paperless processes in Rotterdam. This ensures security and addresses double spending issues, while also reducing paperwork, connecting data silos and automating processes.

Identity management 04 

Blockchain Identity Management is a secure solution that protects people’s identities against injury or theft. It uses a distributed trust model to ensure privacy where identity documents are secured, verified and validated by authorised participants.

Blockchain-based identity management offer, for example, the possibility to manage access rights for companies to input information about pick-up and delivery of goods.

In addition, third party providers in Know Your Customer/Anti Money Laundering processes, last mile deliveries or driving licensees of truck drivers can be verified by using Blockchain Identity Management

Blockchain and AI based Payment Transfer Solutions

Blockchain technology promises to facilitate fast, secure, low-cost international payment processing services (and other transactions) through the use of encrypted distributed ledgers that provide trusted real-time verification of transactions without the need for intermediaries such as correspondent banks and clearing houses.

Blockchain technology offers faster, low-cost, secured payment services along with a distributed ledger that can provide trust among the participants. Although blockchain started out as the initial support platform for digital currencies, it’s now integrated into various industries, mainly in payments.

In reality, our payment system is full of issues and needs a change right about now. In many cases, it can take days to process a transaction with extra fees and low security.

Blockchain refers to a ‘chain of blocks. The blocks contain time-stamped digital records of any transactions or data exchange on the distributed network of computers. A “block” has its cryptographic hash, like a unique ID. Every block contains its hash and the previous block’s hash, along with data, which connects the blockchain.

A new block is added to the blockchain whenever a new transaction occurs. Each transaction first needs to be validated by all the network nodes, and the nodes have to come to a consensus via a consensus mechanism to validate a transaction. Different blockchains use consensus mechanisms like Proof of Work, Proof of Stake, etc.

Blockchain offers multiple advantages like transparency and security, so it is a very suitable technology for the payments and finance industry. Let’s learn more about the benefits of blockchain in payments

What are the advantages of blockchain in payments?

Blockchain facilitates fast, secure, low-cost international payment processing services (and other transactions) through the use of encrypted distributed ledgers that provide trusted real-time verification of transactions without the need for intermediaries such as correspondent banks and clearinghouses. Blockchain technology was initially used to support the digital currency Bitcoin but is now being explored for various applications that don’t involve bitcoin. It further offers the following top benefits:

Removes intermediaries

There is a need for mediators and intermediaries with the current payments system. To make a payment, one has to pass through several intermediaries and authorizations, such as the payment gateway, exchange mode, issuer, etc. Even though intermediaries are responsible for maintaining the authenticity of payments, they have the following drawbacks:

• Their service is chargeable
• It increases the transaction time

Whereas, with blockchain payment systems, one can:

• Settle transactions more easily
• Maintain the authenticity of the transactions without the presence of middle-men
• Facilitate peer-to-peer transfers or payments
• Save the transaction data securely
• Develop a cryptocurrency wallet quickly and use it for payments

Such advantages of the blockchain payment system have also motivated banks to introduce blockchain transactions in their system and enjoy the given benefits:

• Simplify transactions
• Settle them quickly
• Eliminate intermediaries from the payment system

Transparency and security

One of blockchain technology’s most significant benefits is the high-level transparency it offers. Details of all transactions that take place via a blockchain network are:

• Stored in the blockchain
• Immutable
• Visible to everyone

Hence, while making payments, you don’t have to worry about saving any records as they get saved in the blockchain and are kept safe while ensuring the integrity of the data.

Since every block contains its hash and the hash of the previous block, they are chronologically linked. Hence, no one can tamper with the records on the blockchain, as any change would be visible.

Safe and quick cross-border payments

Cross-Border payments occur when the payee and the payer reside in different countries. Making cross-border payments has been a problematic area for a very long time, and it faces several challenges, such as:

• There are numerous intermediaries involved.
• The present method may reduce the chances of fraud, but it is more expensive due to commissions.
• The payment processing time is prolonged, as cross-border payments can take one to five days for successful transactions.
• Personal data privacy regulations are not clear.
• There is a lack of transparency.

With blockchain, one can:

• Transfer funds from one country to another very quickly. Blockchain payment systems can reduce payment processing time from days to a few hours.
• Reduce the intermediaries in the payment process, as blockchain ensures the authenticity of payments with a high degree of transparency.
• Ensure the safety of payments and information as all transaction data on the blockchain is immutable.

For example, Ripple (XRP) acts as a cryptocurrency intermediary to facilitate seamless cross-border transactions. If a person from India wishes to pay money to a friend in the USA, the money in Rupees would be transferred as XRP, and the person in the USA would receive it as USD.

Automation with smart contracts

Automation with smart contracts is a great advantage, especially for people running businesses and companies. Smart Contracts can:

• Reduce the payment time
• Help facilitate instant payments
• Automate payment flows.

While writing smart contracts, one should mention all the conditions for transferring payment. Once the required credentials are met, the concerned person is automatically paid.

Suppose a company hires a content creator to provide some content. The person will be automatically paid when he finishes and provides his end of the requirements, whatever is required per the deal. As you understand the benefits of blockchain in payments now, let’s learn about the working of blockchain payment systems.

Technical Standards

When technicalities are considered, a significant challenge is blockchain’s incomplete or broken adoption. Fragmented adoption of blockchain has its own set of challenges which can hinder its seamless functioning, such as:

• Increased costs
• Standardization failure
• Lack of interoperability

Interoperability is essential to ensure that blockchain payments are seamlessly integrated into existing systems. To address this challenge, a firm focus on the following components is required:

• Development of common technical standards for interoperability
• Enhancement of network scale efficiencies
• Implementation of a standard mode of communication
• Conducting test runs to ensure:
  • Good speed
  • • Scalability
    • Compliance with geographical standards

Governance

Since transaction records of payments via blockchain are immutable, challenges that come up here are:

• Lack of reversibility of transactions
• Inability to cancel payments
• Accountability of the blockchain ledger, which stores the information

One can address these challenges by:

• Laying down governance standards to address all challenges
• Developing and integrating solutions to facilitate cancellation and reversal of payments

Regulations

While implementing blockchain solutions, special attention needs to be given to the regulatory compliance required. As sensitive information about people’s money and payments is being stored in the blockchain payment systems, it is essential to take care of all regulatory compliance to avoid violation charges or penalties.

• To ensure complete compliance with regulations, one can:
• Research about all mandatory regulatory standards according to the geographical region.
• Evaluate their blockchain payment system’s technical architecture to ensure compliance with the mandatory regulations.
• Regularly update their blockchain payment system according to the respective government’s guidelines.
• Keep users updated about the various steps being taken and regulations being followed.
• Immediately take necessary actions in case of any regulation violations.

Safety and Security

Blockchain offers maximum transparency, both good and bad, for the users. On the one hand, it improves the payment systems by smoothening the payment flows. However, on the other hand, it comes up as a concern to users who don’t wish to share all of their payment data with everyone.

• To address these challenges, one should:
• Lay down strict security standards.
• Inform users about maintaining and storing their user credentials.
• Conduct regular scans and bug-checks in the blockchain payment systems.
• Implement and comply with all regulatory standards.
• Thoroughly check and test solutions that need integration with the help of third-party vendors or companies.

Whenever one moves from one technical solution to another, they will always face challenges. As blockchain in payments is still a growing industry, meeting a few problems and concerns is very common. However, with proper steps and precautions, one can quickly deal with those challenges and move on to enjoy the multiple benefits this technology has to offer.

Conclusion

Blockchain technology has done major transformations to the payments industry, and it continues to bring innovations. Transactions distributed across network nodes of computers, payments become very secure, without the risk of tampering or data manipulation. Enterprises that efficiently deal with the challenges of centralized payment systems and form a dedicated and experienced team to implement a blockchain payment system in their business can easily avail its multiple benefits.

More organizations are focusing on the utility of blockchain to accelerate their business processes, reduce the cost of payment processing, add more security layers, and tackle potential business risks. Both public-private concerns pay attention to decentralized as it can take their business growth to the mainstream.

AI and Data Analytics in e-commerce Industry

Artificial intelligence isn’t just a novel technology implemented for its “cool factor.” Implementing AI has the potential to impact any number of business functions across your organization.

To understand how it could impact your business, it helps to have an understanding of the components of artificial intelligence.

The definition of AI is broad, and encompasses data mining, natural language processing, and machine learning.

• Data mining refers to the gathering of both current and historical data to inform predictions.
• Natural language processing focuses on human-computer interaction and how computers interpret natural human language.
• Machine learning concerns using a collection of algorithms to apply past experience or provide examples to solve a problem. Deep learning “involves layering algorithms in an effort to gain greater understanding of the data.”

Over the past couple of years, AI technology has matured and become a powerful tool to boost sales and optimize operations. Even many small ecommerce businesses are using technology with some kind of AI capability.

Benefits of Using Artificial Intelligence in Ecommerce 

1. More targeted marketing and advertising.

Personalization is a top priority, according to surveyed retailers, but only 15% say they’ve fully implemented personalization across channels. Stand out from the crowd with a more personalized message and have one-to-one conversations with your customers.

Advances in AI and machine learning have enabled deep personalization techniques to customize content by user. By analyzing big data from purchase histories and other customer interactions, you can zero in on what your customers really want and deliver the message that will most resonate.

2. Increased customer retention.

Delivering targeted marketing and advertising messages personalized for their customers can increase retention. McKinsey omnichannel personalization research indicated there’s a 10-15% uplift potential in revenue and retention from omnichannel personalization strategies.

The report reads: “A critical element of personalization is building better data and insights on customers, an asset that also generates additional value across the value chain. … Our research suggests the ROI for personalization will quickly outpace that of traditional mass marketing.”

3. Seamless automation.

The goal of automation is to accomplish a task with as little human intervention as possible. That can mean anything from scheduling emails in a CRM or marketing tool, using Zapier to automate tasks or leveraging advanced technology to help with hiring.

In the context of future ecommerce trends, however, some of the most commonly talked about today are robotics and machine learning.

AI can play a big role in helping you automate the repetitive tasks that keep your online store functioning. With AI, you can automate things like product recommendations, loyalty discounts, low-level support, and more.

4. Efficient sales process.

Using AI can help you create a more efficient sales process by gathering data about your customers, automate follow-up abandoned cart inquiries, and more. You can help move customers through the funnel by having them engage with chatbots for simple questions.

AI Use Cases in Ecommerce

There are plenty of use cases in ecommerce for AI, and you’re probably familiar with a lot of them — you just might not know that the technology they’re built on is actually related to AI. Here are six of the most common:

1. Personalized product recommendations.
2. Pricing optimization.
3. Enhanced customer service.
4. Customer segmentation.
5. Smart logistics.
6. Sales and demand forecasting.

1. Personalized product recommendations.

It’s easier than ever to collect and process customer data about their online shopping experience. Artificial intelligence is being used to offer personalized product recommendations based on past customer behavior and lookalike customers.

Websites that recommend items you might like based on previous purchases use machine learning to analyze your purchase history. Retailers rely on machine learning to capture data, analyze it, and use it to deliver a personalized experience, implement a marketing campaign, optimize pricing, and generate customer insights.

Over time, machine learning will require less and less involvement from data scientists for everyday types of applications in ecommerce companies.

2. Pricing optimization.

AI-enabled dynamic pricing is a strategy of changing your product price based on supply and demand. With access to the right data, today’s tools can predict when and what to discount, dynamically calculating the minimum discount necessary for the sale.

3. Enhanced customer service.

With virtual assistants and chatbot technology, you can deliver the appearance of higher touch customer support. While these bots aren’t completely self-reliant, they can facilitate simple transactions, leaving live support agents able to focus on more complex issues.

Virtual agents also have the advantage of being available 24/7, so low-level questions and issues can be addressed at any time of day, without making your customer wait.

4. Customer segmentation.

Access to more business and customer data and processing power is enabling ecommerce operators to understand their customers and identify new trends better than ever.

In an insight from Accenture, they write, “AI systems can explore highly complex and varied options for customer engagement very quickly, and continuously optimize their performance as more data becomes available. This means marketers can set parameters and allow the AI to optimize and learn to achieve precision.”

5. Smart logistics.

According to a report from Emerging Tech Brew, “Machine learning’s predictive powers shine in logistics, helping to forecast transit times, demand levels, and shipment delays.”

Smart logistics or intelligent logistics, is all about using real-time information through sensors, RFID tags, and the like, for inventory management and to better forecast demand. Machine learning systems become smarter over time to build better predictions for their supply chain and logistics functions.

6. Sales and demand forecasting.

Particularly in a world during and after COVID-19, you’ll want to plan your inventory on both real-time and historical data. Artificial intelligence can help you do just that. A recent McKinsey report suggests that investment in real-time customer analytics will continue to be important to monitor and react to shifts in consumer demand that can be harnessed for price optimization or targeted marketing.

How to Implement Artificial Intelligence Into Ecommerce

It’s always tempting to jump into new, exciting technologies. But you’ll want to have a roadmap before jumping into implementing a new program, to make sure you don’t lose a lot of time and money on false starts.

1. Create a strategy.

You have to start somewhere — and your strategy will lay out the path you need to take from there to your AI goal. Don’t just punt this to a newly hired AI expert or your CIO or CTO.

Really put some thought into what you want to accomplish with AI. Take a practical approach, and don’t forget to start small. You can always build on your successes down the road.

2. Find narrow use cases that are relevant to the overall corporate strategy.

The most successful AI use cases live at the intersection of business objectives, data differentiation, and readily available artificial intelligence models. All that to say — you should focus on revenue-generating opportunities where you have a data advantage and in a context appropriate for proven AI technology.

3. Leverage third-party expertise.

Even if you’re an armchair AI aficionado, you’ll want to accept expert assistance on this one. Bring in a tiger team on a project or part-time basis to dig in and help you build a strategic AI roadmap. Those third parties can be helpful in bringing your MVP (minimum viable product) to life as well.

4. Build a full-scale solution.

Once you’re confident in what your team has produced, it’s time to build the full scale solution. Don’t be surprised if it still takes some iterations before it works like you expect. As you and your team become more comfortable working in the realm of AI, you’ll start to see greater benefit from the projects you implement.

Wrapping Up

Tomorrow’s AI sounds like it’s straight from the movies, but there’s plenty of AI technology today that may look less glamorous improving customer experience, increasing conversion rates, and helping to streamline the way the business is run.

If you want to deliver the best possible shopping experience on your ecommerce website, look into the various benefits of artificial intelligence and machine learning. It can help you make better use of your customer and business data to set a plan for your future that will work.