The Economic Times — ETRetail.com, India: Cognizant’s Retail and Blockchain Leaders Say Retailers Stand to Reap a Multitude of Benefits from Blockchain

“Blockchain may well be nascent in the retail sector. However, given its ability to deliver low-cost, secure sharing of information and value, which is expected to rival the transformative capabilities of the Internet, it clearly has the potential to bring path-breaking innovations across the retail value chain,” write Cognizant’s Singaravelu Ekambaram, Senior Vice President and Global Delivery Head, Retail and Consumer Goods, and Lata Varghese, Assistant Vice President, Blockchain Consulting. Excerpts:

“Retailers face steep challenges in the form of limited supply visibility that causes volatility, environment-conscious customers who demand sustainable products, increasing demand for product authenticity (such as proof of the place of origin), and higher transaction fees from third-party payment processors. Added to these is the problem of counterfeit products that dent genuine sales volumes and undermine brand value.

While there’s no cure-all for solving the industry’s many challenges, blockchain can help retailers: 

1. Instil visibility and transparency in supply chain using the shared ledger to track and trace goods in the value chain.

2. Increase partner performance efficiency by using ‘smart contracts’ to automate supplier/vendor contractual agreements and, in turn, gain greater visibility into their performance. 

3. Improve the traceability of the value chain to aid robust proof of compliance to standards at origin and along the chain.

4. Provide customers with indisputable proof of the provenance and authenticity of their products at every step of the supply chain.

Deployed correctly, retailers stand to reap a multitude of benefits from blockchain, ranging from increased consumer trust and lower operational costs, through tighter relationships with partners across their far-flung ecosystems.

Blockchain is poised to transform critical operations in the retail industry, driving value that far outweighs the necessary investment in innovation and exploration. Road-testing before marshalling significant resources and investment behind full-scale adoption will reduce mistakes and minimize risk. Failing to explore and exploit an industry-shifting technology such as blockchain could result in penalties beyond missed operational efficiency.”

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