As we enter a new digital age the signs all point to Blockchain, Cryptocurrencies and digitized assets. Supply chains optimize operations with speed and efficiency while additionally reducing costs. Most importantly, the design of these systems are essential for the companies success. Currently, a small percentage of companies globally place a strong emphasis on supply chain management. Another aspect of a successful supply chain is customer service management, which tends to be a massive problem for most companies. Some of the other problems include long delivery lead times, delays in response to customer service requests, inventory shortages, poor product quality, tracking missing items, verifying what is authentic vs non authentic, tracking costs and all of the related categories such as wasted products, procurement cost, inventory management, transportation, etc. If you really consider Blockchain to be in the image of a chain, it could only take one weak link to destroy it which is why it significantly helps to have every detail tracked properly to improve efficiency of the company leading to better results.
Already a top performing company in the speculative Blockchain investing space, VeChain has held onto it’s position through tough times. It’s a key player in the supply chain category and it plans to release it’s Mainnet in June 2018. Furthermore, VeChain has partners with some major firms for it’s potential use.
“From now until the release of mainnet, Xiamen Innov and Smart Corelink will be working to onboard their existing customers onto this service providing robust supply chain management, smart appliance solutions, and product lifespan analytic modules that provide immense value as defined by their pilot members” -VeChain
In addition, Vechain has reportedly aligned on a partnership level with BMW, Michigan State University, Chinese consulting firm NRCC, Oxford University, PwC Asia, and they have also formed investor alliances with VC heavy hitter Tim Draper of Silicon Valley, who seems to have gone full force into Blockchain investing and is a key figurehead at many Blockchain conferences taking place globally. Also backing VeChain’s development are powerful investment groups like Fenbushi Capital and Breyer Capital. The team is predominately Chinese and headed by Sunny Lu who started working on the VeChain concept in 2015. Many of the core team members have backgrounds working for large publicly traded companies.
VeChain to Solve Supply Chain Problems
VeChain wants to solve the problems that exist in:
- IoT (Internet of Things) for cold chain logistics (temperature controlled supply chains often used in the trucking industry for meats, dairy and other products that require specifics temperatures)
- Automotive, which will track all aspects of the vehicle history including repair history, insurance, registration and driver behavior. This ultimately could lead to more partnerships with major automakers.
- Medical & Health Care such as sharing biometric data of patients, hardware devices & medical devices, which is a very needed use case in my opinion, medical records are often mismanaged.
- Luxury & Fashion. Large brands such as LV & Gucci has faced immense problems with this over the years due to lack of supply chain and authenticity information.
- Liquor. VeChain created a system to track the wine supply chain including the use of QR/NFC codes.
- Agriculture. Through the use of IoT VeChain can track conditions for organic materials. This sort of data can be used to improve the quality of products.
VeChain has been in production since 2015 and lead by a strong team with backgrounds working for publicly traded companies for several years. They have strong backers such as VC Tim Draper and Fenbushi Capital who has been backing a lot of Blockchain related projects. I also see huge potential for partnerships not just in Asian but globally. We should be paying attention to the Chinese markets. Although the Market Capitalization for VeChain is nearly $2B, I still believe the potential for more partnerships will allow much more growth in Market Cap. The space is highly competitive right now, with dozens of other Blockchain companies aiming for the same goals. I will definitely be keeping my eye on VeChain for long term growth.