Data-driven operations hold the key to cutting operational costs for business models. Furthermore, Blockchain technology is being increasingly adopted in various industries to safeguard internal operating networks against data security breaches. Additionally, DLT also facilitates paperless operations that are free of error and fraud, as well as cutting transaction time and costs of initiating and completing business deals.
As companies evolve and reorganize their systems in readiness for industry 4.0 revolution that is in the offing, so are the use cases of the disruptive technology.
In the latest illustration of the flexibility of the technology, two Blockchain platforms have linked up and offered immense seamless operations that are poised to set two companies in the partnership on a trajectory to long term competitiveness, efficiency, and profitability.
HSBC And Landmark Group Form A Partnership
The two Blockchain platforms that have been integrated include Voltron and ReChainME. In the first case, Voltron is a Blockchain platform that has been developed and deployed to enable HSBC to offer trade financing solutions targeting importers and exporters. On the other hand, ReChainMe is Distributed Ledger network owned by Landmark Group that enables the company to monitor the supply chain and ensure that conveyance data is as per the set policies.
Landmark Group is a retail firm that with more than 2, 300 shops spread across India and the Middle East. Additionally, the company operates restaurants, hotels, and stores and is authorized to trade popular brands such as Steve Madden, Nando’s, Kurt Geiger shoes, and Krispy Kreme.
Hence, the HSBC deal allows Landmark access trade financing instantly and without the inconveniences and related-costs of relying on conventional approaches of importing products.
The Interoperable DLT Cut Transaction Costs By 40%
After the HSBC Voltron platform and the ReChainMe platform were connected, both parties were able to access data in real-time as a shipment was dispatched from Hong Kong’s Dee Industries to Dubai’s BabyShop retail that the Landmark Group operates.
The results of the trial indicate that linking of the interoperable systems cut transaction costs by 40% as the duration of transaction time was reduced by 12 days.
The trial commenced on June 2019 and some of the transactions that the linked systems supported the conveyance of a Letter of Credit via Voltron from the UAE to Hong Kong. This, in turn, enabled peers on ReChainMe to process transactions ahead of the traditional time and allowed the movement of the goods in record timeframes.
Success Of The Trial Paves Way For Similar Projects
Seamless convection of two Blockchain platforms enhances the participation of all parties in the supply chain. In this perspective interoperability allows supply chain participants to track progress, liaise in creating and approving documents, agree on logistical terms, and approve and remit payments.
The HSBC MENA and Turkey regional head Sunil Veetil and the overall CFO of Landmark Group Rajesh Garg are confident that interoperable Blockchain platforms are vital for transforming supply chains and creating value for clients.