Imagine you are a consultant to a start-up company. The company is considering using a block chain build its operations and the board wishes to learn about the possibilities available.

Assignment Brief

1. Imagine you are a consultant to a start-up company. The company is considering using a block chain build its operations and the board wishes to learn about the possibilities available.
2. First decide what type of company you wish to consider, and whether the company would employ a public or private (typically, consortium) block chain. 
3. It is important to give the outline first and consider is it ok.
4. The report should make use of secondary sources, which you can find using on-line resources tools. References should be used throughout the main text; these will typically be hyperlinks added as footnotes or endnotes. Like this: https://devcon4.ethereum.org/app 

The report should follow the structure:

• Title and Executive Summary
• Introduction
• Main body
• Conclusion

There should be a clear conclusion which summarizes the learning points for the board to take away.

Sample Answer

Blockchain Integration for Supply Chain Start-Up: Opportunities and Considerations

Executive Summary

This report advises a start-up in the supply chain management sector on how blockchain technology could be integrated into its operations. The company aims to improve transparency, traceability, and efficiency. The report recommends adopting a private (consortium) blockchain, given the need for controlled access among supply chain partners. Key benefits, risks, and examples of blockchain use in supply chains are discussed. The board is advised to proceed cautiously with a pilot project, ensuring a scalable and cost-effective approach.

Introduction

Blockchain technology is gaining attention for its potential to revolutionise business operations across industries. Originally developed for cryptocurrencies, blockchain offers a secure, decentralised ledger system that can be used to record and verify transactions in real time. This report focuses on how a start-up supply chain company can benefit from blockchain, particularly a private (consortium) blockchain, which limits access to trusted partners rather than the public. The aim is to assess its practicality, challenges, and strategic value to the start-up.

Main Body

1. Company Type and Blockchain Selection

The chosen start-up operates in supply chain logistics, helping clients manage inventory and product delivery from manufacturers to retailers. In this context, a private blockchain is most appropriate, as it allows data sharing among key stakeholders (e.g., suppliers, transporters, retailers) while maintaining privacy and control. Public blockchains (e.g., Bitcoin, Ethereum) are open to anyone and may not be ideal due to security, speed, and scalability concerns for a growing start-up.

2. Advantages of Blockchain for Supply Chains

• Transparency and Traceability: Blockchain creates a permanent record of product movements, which helps track goods from origin to destination. This is crucial for reducing fraud and ensuring compliance with regulations.

• Efficiency and Cost Savings: Smart contracts automate key processes like payments and order verification, reducing manual paperwork and delays.

• Trust and Collaboration: Blockchain fosters trust among parties by providing a single source of truth, improving cooperation in complex supply networks.

3. Potential Challenges

• High Initial Costs: Blockchain systems require investment in technology, training, and integration, which could be a burden for a start-up.

• Scalability: Private blockchains offer better performance than public ones, but scaling up can still be complex, especially with multiple stakeholders.

• Legal and Regulatory Uncertainty: Blockchain is still evolving, and regulations vary by country, which could impact compliance and data sharing.

Case Example: IBM and Maersk’s TradeLens

One of the most well-known blockchain applications in supply chains is TradeLens, a platform developed by IBM and Maersk. It allows global shippers and customs authorities to digitise trade documentation, reducing time and improving security. This model shows how private blockchains can streamline logistics while ensuring data privacy and partner control.

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