Leveraging blockchain and AI in supply chains
Revolutionising the Supply Chain
Supply Chain | Jan. 19, 2023 | Vagabond Product Pass
As the world becomes increasingly interconnected, global supply chains have grown in size and complexity. Companies rely on these networks to source raw materials, manufacture goods, and distribute products to customers around the world. However, this complexity can also lead to inefficiencies and bottlenecks, which can impact the overall efficiency and effectiveness of the supply chain.
One of the main issues with global supply chains is the lack of transparency and traceability. It is often difficult for companies to track the movement of goods and materials as they pass through different stages of the supply chain. This lack of visibility can make it difficult for companies to identify and address problems, leading to delays and increased costs.
Another predominant issue is the lack of standardisation and interoperability. Different countries, regions, and companies often have their own systems and processes, which can make it difficult to exchange information and coordinate activities. This can lead to duplication of efforts, miscommunication, and other issues that can slow down the supply chain.
Our Vision
At Vagabond, we believe in the transformative power of technology to drive positive change and create a more sustainable future. That’s why we’re leveraging the capabilities of blockchain and artificial intelligence to revolutionise supply chain management. By building solutions on top of Web3 technologies, we aim to improve the efficiency, transparency, and traceability of supply chains, enabling businesses to make better-informed decisions and reduce the risk of fraud and errors. By harnessing the power of decentralised databases, we aim to create a more secure and transparent system that benefits all stakeholders in the supply chain. Ultimately, our vision is to create a more sustainable and efficient global economy that benefits all.
Our Innovation
Vagabond has developed cutting-edge solutions to address the challenges present in global supply chains. Our offerings include the Vagabond Product Passport, the Sustainability Suite, and a comprehensive Life Cycle Definition module that encompasses life cycle assessments, inventory, and management capabilities. The focus of this article is on the Product Passport, which leverages the latest technologies, including blockchain and AI, to improve supply chain efficiency and transparency.
Vagabond Product Passport
Vagabond’s Product Passport is a revolutionary digital identification system that helps businesses, organisations, and individuals manage, track, identify, and share product information throughout its entire life cycle on a global scale.
By leveraging the power of VagaChain blockchain technology and artificial intelligence, the Product Passport enables organisations to reduce resource consumption, increase transparency, traceability, and accountability, and unlock new opportunities for resale, recycling, and regeneration.
Features
One of the key features of the Product Pass is its ability to support sustainability efforts. The passport can store data related to life cycle assessments, carbon footprints, and ESG performance, making it easier for businesses to understand the environmental impact of their products and make informed decisions about how to reduce their carbon footprint.
Through the use of advanced artificial intelligence and VagaChain blockchain technology, the product pass offers a range of features that make it easy for companies to improve their environmental, social, and governance performance (ESG), reduce their carbon footprint, and meet regulatory requirements.
Other features include but are not limited to:
✔ Create value through circular business models
✔ Authenticate compliance and legal obligations
✔ Curate data-led decision making
✔ Identify chemical hazards
✔ Automate CO2e data reporting, cradle-to-cradle
✔ Exchange data harmoniously across value chains
✔ Protect intellectual property and trade secrets
Supply Chain Management and Traceability
In addition to its sustainability benefits, the Product Pass also has the potential to revolutionise supply chain management and traceability. By tokenising products and storing data about their origin, movement, and ownership on the VagaChain blockchain, the Product Pass enables real-time tracking and traceability. This can help businesses optimise their supply chain and reduce the risk of counterfeiting, fraud, and other issues that can compromise product quality and safety.
Tools such as the VagaWallet enable seamless storage, authentication and intuitive operability in all Product Passport operations and processes. Businesses no longer need to curate independent mobile solutions to interact with their suppliers, distributors, customers or 3rd party service providers. All is available through the use of a simple interoperable application on a compatible iOS or Android mobile device.
Data Integrity
The Vagabond Product Passport enables data exchange to be secured, released in a targeted and traceable manner without compromising data integrity.
With its unique features, the Product Passport allows subcontractors to transfer calculated and reported CO2e emissions to their buyers without having to share any raw data. This is achieved by immutably writing emissions data on the VagaChain blockchain, along with a Vagabond ID (VID) or Product ID (PID) of the underlying raw data.
Only data that is required by regulations, such as CO2e production or statement-of-health (SoH) data in the context of a digital battery passport, can be accessed. The data used to calculate these values remains within the owner’s data environment and is not accessible without the owner’s pre-approved access to a specific partner or entity in the supply chain. This ensures security against tampering while protecting critical data from being shared outside the data provider’s premises.
Artificial Intelligence
The Vagabond Product Passport leverages the power of artificial intelligence to automate processes and generate detailed reports. One of the key ways in which AI is utilised is through the automation of carbon emission and ESG reports, allowing businesses to easily and accurately share this information with all stakeholders in the value chain, including suppliers, customers, and regulatory authorities, in a timely and effective manner.
In addition to automating reporting, AI also plays a crucial role in supply chain management and traceability. By analysing data related to product movement, inventory, and logistics, AI can identify bottlenecks and inefficiencies in the supply chain, and suggest areas for improvement. This, in turn, helps companies to reduce costs, improve efficiency, and enhance the overall performance of their supply chains.
Not only limited to supply chain capabilities, the integration of AI with the Vagabond Product Passport can also enhance eCommerce efforts. By automating processes and providing valuable insights, the Product Passport can streamline the sale and resale of products, unlocking new business opportunities, and supporting the circular economy. This allows companies to not only improve supply chain efficiency, but also drive revenue growth through more efficient and sustainable sales practices.
Current EU Regulatory Plans
- The EU has introduced several regulatory plans aimed at improving supply chain transparency and traceability, such as the EU Supply Chain Act, which requires companies to conduct due diligence and disclose information about risks of human rights and environmental violations in their supply chains. The Supply Chain Act draft has been adopted by the European Council in December 2022 and the next step is for the European Parliament to agree on a position, something which is expected to occur by the end of May 2023. EU member states will then have two years to transpose the Directive into their own national laws.
- The EU also recently introduced the EU Taxonomy Regulation, which sets out a framework for sustainable finance and requires companies to disclose information about their environmental impact and alignment with the EU’s sustainability objectives. The goal of the taxonomy is to create a common classification system for sustainable economic activities.
Specific Use Case Examples
- Luxury goods: The Product Passport can be used by luxury goods companies to authenticate the origin and provenance of their products, helping to combat the issue of counterfeit goods in the market.
- Pharmaceuticals: The Product Passport can be used to track the movement of pharmaceuticals through the supply chain, ensuring that they are properly stored and handled to maintain their effectiveness and safety.
- Food and agriculture: The Product Passport can be used to trace the origin and movement of food and agricultural products, providing consumers with information about the quality and safety of the products they are purchasing and helping to reduce the risk of food fraud.
- Battery supply chain: Another area where the Vagabond Product Pass can have a significant impact is in the battery supply chain. With the increasing demand for batteries, particularly as the world transitions to renewable energy sources and EV mobility, it is essential to ensure that the production, distribution, and disposal of batteries is done in a sustainable and responsible manner. The Product Pass can help with this by providing a comprehensive and reliable system for tracking the life cycle of batteries and ensuring compliance with relevant regulations.
- Carbon credit trading: The Product Passport can be used to verify the authenticity of carbon credits and ensure that they are being used in compliance with established standards and regulations. This can help increase the transparency and integrity of the carbon credit market and support the development of sustainable products and services.
- Carbon offsetting: the Product Passport can be used to track the carbon emissions associated with a product or service and offset them through the purchase of carbon credits. This can help businesses reduce their overall carbon footprint and support the development of low-carbon products and services.
- Trade financing: The Product Passport can be used to provide a transparent and traceable record of the origin, movement, and ownership of goods. This can help increase the efficiency and security of trade financing transactions, reduce the risk of fraud and errors, and support the development of sustainable supply chains.
Additional Benefits
- Enhancing customer trust: By providing detailed information about the origin, movement and provenance of products, the Product Passport can help businesses build trust and confidence with customers, leading to increased customer loyalty.
- Improving supplier relationships: By providing suppliers with detailed information about the movement and handling of their products, the Product Passport can help businesses foster stronger, more collaborative partnerships with suppliers.
- Reducing costs: By automating and streamlining supply chain processes, the Product Passport can help businesses reduce costs, increase efficiency and improve the overall effectiveness of their supply chains.
- Ensuring regulatory compliance: The Vagabond Product Passport ensures compliance with EU and global regulations from the moment of implementation, eliminating the need for companies to constantly update and research new compliance measures. The protocol is continuously updated, automatically notifying companies or users if any data needs to be reviewed, providing a seamless and efficient compliance process.
SDG’s
Another important aspect of the Vagabond Product Passport is its ability to help businesses meet the United Nations Sustainable Development Goals (SDGs). The product pass provides data and insights that can support the achievement of multiple SDGs, including goals related to climate action, responsible consumption and production, and clean energy.
The Product Pass can also help businesses and organisations to demonstrate their commitment to sustainability and social responsibility. By making their product data available on the blockchain, organisations can show their customers and stakeholders that they are taking concrete steps to reduce their environmental impact and support the United Nations’ Sustainable Development Goals (SDGs). This, in turn, can help businesses to build trust and credibility with their stakeholders and differentiate themselves from their competitors.
Additionally, the Product Pass can help businesses comply with product labelling and disclosure regulations, as it can provide detailed information about the materials, processes, and environmental impacts of a product.
Final Remarks
Overall, the Vagabond Product Passport is a powerful tool that enables businesses, organisations, and individuals to drive sustainability, optimise supply chain management and traceability, and unlock new efficiencies. By leveraging the benefits of the Product Pass, these stakeholders can achieve greater transparency, accountability, and competitiveness in the marketplace while ensuring regulatory compliance and economic competitiveness.
Disclaimer
This article does not constitute any investment advice, financial advice, trading advice or recommendation by Vagabond Solutions, its affiliates, or its respective officers, directors, managers, employees, agents, advisors or consultants on the merits of purchasing the $VGO, $VGB or $VAGA token nor should it be relied upon in connection with any other contract or purchasing decision.
The uncertainty in tax legislation relating to cryptocurrency tokens and digital assets may expose cryptocurrency token holders to tax consequences associated with the use or trading of the token.
Digital assets and related products and services carry significant risks. Potential purchasers should take into account all of the above, together with any other applicable risk disclosures we provide and the advice they obtain, and assess the nature of, and their own appetite for, relevant risks independently and consult their advisers before making any informed decisions.
About Vagabond
Vagabond is a Blockchain-as-a-Service (BaaS) platform that enables businesses to implement the benefits of Blockchain into their operations. We see a significant market potential that addresses the most notable challenges companies face in deploying blockchain solutions — the cost and time of implementation and adoption. Vagabond sets to build its community for individuals and supports users to experiment, learn or run their dApps (e.g. NFT Marketplace Builder) based on the Vagabond platform. Vagabond’s primary strengths are predefined processes and modules that the user can use and adapt without writing a single line of source code.
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