Deloitte Report Highlights Blockchain Value for Retail and Consumer Packaged Goods Industries

The retail and consumer packaged goods industries are deemed to greatly benefit from blockchain tech if they incorporate the technology into their respective sectors. This came from one of the “Big Four” auditing juggernauts, Deloitte.

In their recent report called “New tech on the block,” the company analyzed 50 blockchain applications within the two industries. There were three core factors considered in the analysis: consumer, supply chain, and payments and contracts. The use cases were then scored for the value blockchain can provide for the two sectors using Deloitte’s standards.

The report outlined four categories in which blockchain can alleviate bottlenecks within the two industries. They are compliance, traceability, flexibility, and stakeholder management. Deloitte remarks that the supply chain is the most likely to benefit from this integration on a short-term basis.

Steve Larke, technology consulting partner of Deloitte, considers blockchain innovation as the biggest transformation catalyst for retailers and consumer businesses. The technology’s capabilities of verifying, monitoring, and keeping an immutable record of transactions make it a highly valuable asset for these businesses.

“The ultimate beneficiary will be the consumer. If blockchain can create efficiencies and save costs throughout the supply‐chain, these benefits can be passed on to the consumer in the form of lower prices," the report stated. "If blockchain provides more transparency across the supply‐chain, these benefits can also be passed onto the consumer in the form of safer products and higher quality.”

However, Deloitte’s report did highlight the importance of research before incorporating the technology into a business. It stated that strategies and objectives should align with how the blockchain tech should be integrated to minimize cost and maximize return-value of the cost spent on the implementation. Moreover, careful planning will also yield long-term results and sustainability for a company if the right programs are prioritized and implemented.

Larke said that businesses who aren’t at least looking at the benefits offered by blockchain is in peril of getting left behind by their competitors who are already researching ways to take advantage of the nascent innovation. He went on to say that blockchain adoption within the mainstream market will occur “sooner rather than later,” and businesses involved in the retail and CPG industries should design frameworks that will efficiently absorb the technology into their system.