RetailBiz, Australia: Cognizant’s Head of Products and Resources in ANZ Says Blockchain is the Next Frontier in Transforming the Retail Sector

“Blockchain is the shared infrastructure and distributed ledger technology that looks poised to shake up many industries, including the retail sector, in the coming years,” writes Gaurav Sharma. “Its ability to streamline operations and enable a more efficient supply chain positions it well to alter the retail industry as we know it.” Excerpts:

“Given its ability to deliver low-cost and secure sharing of information and value, blockchain will be the next frontier in transforming the retail sector. This means it will become crucial for retailers to educate themselves on exactly how blockchain can help address various organizational pain points.

There are multiple operational and customer-facing benefits to using blockchain in the retail industry, which often has disparate data siloes, far-flung sales and partner ecosystems, and problems with accurate reporting of sales volumes. Here are some of the ways it will improve retail businesses:

- Supply chain transparency will be improved, particularly regarding sustainably-sourced products, including fish or organic consumables. Blockchain technology allows the transparent recording of compliance issues regarding such products, in addition to ensuring regulatory compliance across the supply chain. Such transparency will also be increasingly important to a discerning buying public.

- The public ledger that blockchain involves will reduce instances of counterfeit products and fraudulent transactions. All products are publicly registered on the blockchain, and should duplicates appear, it makes counterfeiting more easily identifiable than ever before. The encryption of transactions through blockchain also provides security to consumers against fraudulent transactions.

- Partner performance will become more efficient as ‘smart contracts’ automate the supplier/vendor contractual agreements. In fact, automation is an overarching benefit of blockchain that will see many manual processes become digitized, freeing up employees to focus on issues such as customer engagement.

Retail organizations wishing to tap into the benefits of blockchain will need to develop additional skills and expertise in blockchain. In particular, technology skills such as cryptography, software engineering, and network infrastructure will be crucial to successfully integrating blockchain into an organization.

Retailers should seek to use a mix of internal strategies, such as innovation labs and training, in addition to external strategies such as partnering with blockchain companies and new hires, to close the talent gap on blockchain.

Taking an entrepreneurial approach to blockchain technology is vital to keep up with its fast-changing nature. Being nimble will involve starting small, accepting there may be failures along the way, identifying what strategies will work for your business, and learning to scale quickly.”

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