TEMCO
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TEMCO

TEMCO’s Proposal for an Integrated Supply Blockchain

Problems of Current Logistics System

With multiple outbreaks of health hazards in food products such as the toxic insecticides found in eggs occurring in Europe, South Korea and other countries in 2017, consumers are faced with rising fears. In recent years, radioactive particles of a size that can be seen have been found in rivers in Fukushima Prefecture, and the need for tracking of origin and process of distribution has become even higher.

However, existing supply chain management systems are failing at addressing such concerns. Because they do not provide for monitoring of pre-delivery stages, even if a problem arises, it is difficult to understand at which stage the problem occurred, and to manage the problem. There is a growing tendency for consumers to demand transparency in how a business deals with its supply chain process.

In order to meet these new demands regarding supply chain management systems, large conglomerates are developing their own supply chain management systems, but because these systems are individually tailored to each company’s environment, they inevitably lack versatility. Small and mid-sized companies face difficulties investing in such systems due to poor IT infrastructure and the burden of cost.

According to the data, the investment cost for the informatization of domestic supply chain companies is 1% of the sales amount, which is lower than the industry average (1.6%). The rate of utilization of ICT is 44.6%, which is very low compared to the average of all industries (70.7%).

TEMCO’s Proposal for an Integrated Supply Blockchain

TEMCO started with the idea, “How can products be distributed and delivered to consumers in a reliable way?”

TEMCO is a public supply chain blockchain system that utilizes Smart Contract to overcome the limitations of existing supply chain management systems. In the existing system, the information of each distribution participant within the supply chain process was cut off, but TEMCO has made it possible to connect each participant through a blockchain so that the pre-delivery stages can be grasped in real time. This not only builds consumer trust regarding the supply chain process, but it also has a cost-cutting effect through more efficient supply chain management.

The TEMCO project aims to create a system that can overcome the limitations of the existing supply chain management system by utilizing Smart Contract within the public blockchain ecosystem. The goal is to enable all participants to have access to real-time information on the entire supply chain process from production through distribution to sale at retail outlets.

Through TEMCO, consumers can select products that have passed through a reliable standards. Companies are expected to increase their profitability by streamlining supply chain structure and building a competitive product sale strategy through the TEMCO platform.

The cost of introducing infrastructure for SMEs can also be drastically reduced. In the past, it took several billion won to develop supply chain management infrastructure for SMEs. The TEMCO platform, however, connects every stakeholder under a single platform without the need for a large initial investment, as the only cost is for Smart Contract execution without any additional subscription fees.

There is also an advantage in strengthening the product safety mechanism. In the existing system, it was difficult to identify the cause of quality-related claims. With the introduction of the TEMCO platform, it is possible to trace distribution history down to a single order, which can help identify the responsible party if a dispute occurs. Therefore, it is expected that it will help manage food safety at the government level including the Ministry of Agriculture and Forestry and the Food & Drug Administration.

TEMCO also took advantage of the private blockchain. Confidential information that should not be disclosed can be managed without being exposed on the platform.

The TEMCO team will also build a TEMCO marketplace where suppliers and consumers can participate. This allows consumers to purchase safe products that have come through the proper supply chain process, and manufacturers and distributors can create a virtuous cycle structure that reduces distribution costs and rewards legitimate value.

“TEMCO, Supply Chain Management Powered by Blockchain”

▶ Homepage : http://temco.io

▷ Twitter : https://twitter.com/TEMCOLABS

▶ Facebook : https://www.facebook.com/TEMCOLABS

▷ Brunch : https://brunch.co.kr/@temcolabs

▶ Steemit : https://steemit.com/@temcolabs

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TEMCO

TEMCO

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Blockchain-based Supply Chain Data Management and E-commerce Open Market Platform, GUHADA.