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How do you leverage blockchain and IoT for inventory tracking and visibility?

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Inventory tracking and visibility are crucial for any global logistics operation, as they affect customer satisfaction, operational efficiency, and cost control. However, traditional methods of inventory management, such as barcode scanning, manual data entry, and centralized databases, can be prone to errors, delays, and fraud. How can you leverage blockchain and IoT for inventory tracking and visibility, and what are the benefits and challenges of doing so? In this article, we will explore these questions and provide some practical examples and tips.

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Douglas Souza

Logística | E-commerce | Fulfillment
Tomás Ortega

CEO Mushroom Protocol | Entrepreneur | Scientist
Antoine Jutras-Carignan

VC investor @ Front Row Ventures | Lipid Metabolism PhD Candidate & Lecturer @ UQAM

1 Blockchain basics

Blockchain is a distributed ledger technology that records transactions in a secure, transparent, and immutable way. Each transaction is verified by a network of nodes and added to a block, which is linked to the previous block, forming a chain. Blockchain can provide a single source of truth for inventory data, as it eliminates the need for intermediaries, reconciliations, and manual audits. Blockchain can also enable smart contracts, which are self-executing agreements that trigger actions based on predefined rules and conditions.

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Douglas Souza

Logística | E-commerce | Fulfillment
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Compreender como o blockchain funciona é fundamental para entender como ele pode ser aplicado ao rastreamento de estoque. O blockchain é uma tecnologia de registro distribuído que permite a cria??o de um registro digital imutável e transparente de transa??es. Isso significa que as informa??es sobre o movimento de mercadorias podem ser registradas de forma segura e transparente em um blockchain.

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Tomás Ortega

CEO Mushroom Protocol | Entrepreneur | Scientist
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Blockchain is a technology that can provide security, traceability, transparency and efficiency to various industries. Blockchain allows all information or records to be stored in a block whose cryptographic hash is determined by the information contained in said block, and this information is in turn distributed among several nodes. For this reason, if someone wants to modify or defraud part of the information contained in the block, the cryptographic hash will change, and therefore the defrauded block will be different from the block present in all the other nodes. Let's imagine if we applied this technology to the industries we know today....the transformative power of this technology is infinite.

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Tam Nguyen

Expand To USA And SEA Seamlessly | Help 500+ Biz Save Money From Making Costly Shipping Mistakes |2nd Gen Family Business | Podcast Host | Speaker | Author
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Blockchain, a distributed ledger tech, ensures immutable data recording. In logistics, with multiple supply chain stakeholders, it provides a single source of truth, verifying responsibilities among all parties involved efficiently and transparently.

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2 IoT essentials

IoT, or the Internet of Things, is a network of connected devices that can collect, transmit, and process data. IoT devices can include sensors, RFID tags, GPS trackers, cameras, and smart locks. IoT can provide real-time visibility and traceability of inventory, as it can capture data such as location, temperature, humidity, movement, and quality. IoT can also enable automation and optimization of inventory processes, such as replenishment, routing, and delivery.

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Douglas Souza

Logística | E-commerce | Fulfillment
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A Internet das Coisas (IoT) envolve a conex?o de dispositivos físicos à internet para coletar e trocar dados. No contexto do rastreamento de estoque, sensores IoT podem ser colocados em mercadorias, paletes, prateleiras ou veículos de transporte para coletar dados em tempo real sobre sua localiza??o, condi??es ambientais e status.

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3 Blockchain and IoT integration

Blockchain and IoT can work together to create a more efficient and reliable inventory management system. IoT devices can generate and send data to the blockchain, where it can be stored and verified. Blockchain can then provide a secure and accessible record of inventory transactions and events, as well as execute smart contracts based on the data. For example, a smart contract can automatically release payment to a supplier when an IoT device confirms the delivery of goods, or trigger an alert when an IoT device detects a deviation from the quality standards.

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Douglas Souza

Logística | E-commerce | Fulfillment
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A integra??o de blockchain e IoT permite que os dados coletados pelos dispositivos IoT sejam registrados de forma segura em um blockchain. Isso cria um registro imutável e auditável do movimento e condi??es do estoque ao longo de toda a cadeia de suprimentos.

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4 Benefits of blockchain and IoT

Blockchain and IoT can offer several advantages for inventory tracking and visibility, such as enhanced accuracy and accountability, improved efficiency and productivity, reduced costs and waste, and increased customer satisfaction and loyalty. They can reduce human errors, data discrepancies, and fraud risks by providing a tamper-proof and verifiable record of inventory data. Additionally, they can streamline and automate processes by eliminating manual tasks, paper trails, and intermediaries. Furthermore, they can optimize inventory levels by providing real-time visibility of demand and supply, as well as dynamic pricing and incentives. Finally, they can improve customer service and trust by providing more transparency and traceability of inventory origin, quality, and status, while enabling faster delivery.

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Tomás Ortega

CEO Mushroom Protocol | Entrepreneur | Scientist
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The potential of blockchain is enormous and has an impact on all the industries we know today. If I take the food industry, blockchain can provide traceability to the agri-food value chain, and therefore a huge step towards food security. If i take the healthcare industry, blockchain can provide unalterable and online medical records, allowing doctors and healthcare professionals to make better decisions. If I take the scientific industry, blockchain could provide security and trust in the value chain of scientific production, ensuring that research results cannot be altered. There are thousands of examples, we need to start exploiting the benefits of this technology.

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Antoine Jutras-Carignan

VC investor @ Front Row Ventures | Lipid Metabolism PhD Candidate & Lecturer @ UQAM
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Absolutely, and the supplement industry is a prime candidate for leveraging Blockchain and IoT in inventory management. The industry's challenges with trust and authenticity can be significantly addressed by implementing these technologies. Blockchain's tamper-proof record and IoT's real-time monitoring can ensure the integrity of supplement products, providing consumers with transparent information about the origin, quality, and status of the inventory. This could indeed be a game-changer in building trust and credibility within the supplement market, tackling issues related to counterfeiting and product dilution that have plagued the industry for too long.

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Douglas Souza

Logística | E-commerce | Fulfillment
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Os benefícios incluem maior transparência e visibilidade do estoque em tempo real, redu??o de erros e fraudes, melhoria na precis?o do inventário e aumento da eficiência operacional.

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5 Challenges of blockchain and IoT

Blockchain and IoT can present some challenges for inventory tracking and visibility, such as technical complexity and compatibility, security and privacy risks, and regulatory and legal issues. Implementing and maintaining these technologies can require a high level of technical expertise and infrastructure, as they involve multiple devices, platforms, protocols, and standards. They can also expose sensitive data and assets to cyberattacks, hacking, and theft due to their reliance on internet connectivity and encryption. Additionally, they may face legal uncertainties and compliance requirements due to operating across different jurisdictions, industries, and stakeholders.

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Douglas Souza

Logística | E-commerce | Fulfillment
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Os desafios incluem quest?es de privacidade e seguran?a dos dados, interoperabilidade entre diferentes sistemas e dispositivos IoT, custos de implementa??o e gerenciamento de grandes volumes de dados gerados pelos dispositivos IoT.

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Tomás Ortega

CEO Mushroom Protocol | Entrepreneur | Scientist
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I believe that the main challenge currently is to improve the user experience, and adapt it as much as possible to a user experience close to the one we have today with the applications and web pages that we use every day. In that sense, ensuring that blockchain can be perceived as a technological tool that can be used daily is the main challenge. We need to bring blockchain to people as a solution to their daily problems.

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6 Best practices and tips

To leverage blockchain and IoT for inventory tracking and visibility, it’s important to start with a clear business case and value proposition. Identify the specific problems and goals that blockchain and IoT can address, and quantify the expected benefits and costs. It’s also important to collaborate with trusted and experienced partners and platforms that can provide the necessary technical support, security, scalability, and interoperability. Before scaling up, it’s wise to experiment with small-scale projects to evaluate the performance and impact. Finally, communicate the benefits and challenges of blockchain and IoT to all relevant stakeholders, such as customers, suppliers, regulators, and employees, and involve them in the design and implementation process.

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Douglas Souza

Logística | E-commerce | Fulfillment
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é importante escolher cuidadosamente as solu??es de blockchain e IoT e garantir uma integra??o adequada entre elas. Além disso, é essencial considerar a conformidade com regulamenta??es de prote??o de dados e privacidade, bem como investir em medidas de seguran?a cibernética robustas.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Douglas Souza

Logística | E-commerce | Fulfillment
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Além do rastreamento de estoque, blockchain e IoT também podem ser aplicados em outras áreas da cadeia de suprimentos, como gest?o de qualidade, rastreamento de ativos e monitoramento de condi??es ambientais. Explorar essas possibilidades pode trazer benefícios adicionais para a opera??o logística.

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How do you leverage blockchain and IoT for inventory tracking and visibility?

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1 Blockchain basics

2 IoT essentials

3 Blockchain and IoT integration

4 Benefits of blockchain and IoT

5 Challenges of blockchain and IoT

6 Best practices and tips

7 Here’s what else to consider

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