Blockchain is a decentralized ledger that can not only record financial transactions but also other forms of valuable data. This feature allows the use of this technology in more than just financial institutions. Retail is one of the industries that can benefit heavily by utilizing the potential of blockchain technology. The transparency and reliability offered by blockchain enable easy flow of data between different units of a retail chain. As a CIO, it is your responsibility to translate blockchain applications into business objectives. Here’s how you can leverage business data by tapping into the potential of blockchain technology.
Enable a transparent supply chain

Using blockchain to track the movement of goods, money, and information across the supply chain provides multiple benefits to all stakeholders involved. It enables the retail enterprise and the suppliers to easily track the transfer of goods and payments made at every stage. This process can even be automated and made simpler by introducing smart contracts, which are programmed contracts that enforce themselves when specific conditions are met. In addition to improving vendor relations, having a transparent supply chain, courtesy of blockchain, also helps to improve the relationship with customers. Every product sold in the store can be traced, through a bar code or similar technology, all the way back to the source of its components and the facility at which it was manufactured/assembled in. This authenticates the goods and builds trust among consumers.

Another benefit of a blockchain integrated supply chain is the elimination of intermediate agents like banks and other institutions. This saves the extra charges that accompany those institutions and also considerably cuts down the time taken to complete transactions.

Enhance the customer experience

Another way a CIO can use the potential of blockchain technology is to boost a business’s value offerings by using data to enhance customer experience. The billing process is one of the biggest pain points in customers’ retail experience. The need for billing and receipt printing is to have verified records for reference by both parties, the buyer and the seller – a need that can be fulfilled using a blockchain enabled application that transparently verifies and stores the bill data, which can be accessed by any party.

Customer engagement and loyalty is increased by using the individual customer’s shopping data from all branches of the retail chain, regardless of location, to provide rewards, and incentivize continued patronage. Having accurate billing information also makes it easier for the customers to claim returns and warranties. Using blockchain to handle warranties and insurance minimizes the hassle involved in the traditional claiming process that involves a lot of paperwork. Warranty claim data also helps in tracking product performance, allowing retailers and manufacturers to make product-related decisions.

Provide real-time inventory visibility

Having a transparently visible inventory of every facility in the retail chain allows the individual facilities to make immediate restocking decisions based on the demand in the unit. For instance, a retail store that shares the details of every sold item with the concerned wholesaler decides to restock based on that data. The process can continue to include manufacturers who decide on the production quantity based on a pull down the line. All this real-time data sharing, and correspondingly regulated manufacturing enables all the members of the supply chain to maintain a lean inventory.

Another advantage of having a blockchain enabled inventory is the traceability of stock as it moves through the supply chain and preventing inventory shrinkage, i.e., the loss of goods before they reach the customer/retail outlet.

Getting maximum value out of blockchain technology requires the CIO to be innovative and practical while planning the applications. It also helps to consult with partners from the supply chain sector to gain perspective and broaden the proposed application of blockchain. Integration of blockchain technology with an IoT enabled retail enterprise will lead to transformation on a larger scale and place you among the trendsetters in the industry.