
Blockchain Could Be The Answer To The Significant Issues Related To The Cosmetic Industry, For Consumers And Companies Alike.
The cosmetic supply chain is notoriously unregulated. There's a big gap between when a product is manufactured and when it reaches the consumer. In the UK, issues like product diversion and counterfeiting are major concerns in the beauty sector. Many companies rely on contract manufacturers, who then send the product to packaging providers and distributors. This is where the real problem starts. Distributors often sell to unauthorized sub-distributors, making it nearly impossible for the original company to track where the product ends up. Is the price being inflated? Is counterfeit replacing the real product? How do you know if that Chanel eyeshadow you bought on Amazon is genuine or just going to cause an eye infection?How Can Blockchain Help In Solving All The Problems Related To Supply Chain Management?
Cosmetic boxes come with both visible and hidden identifiers to help trace the product back through the supply chain. If a company finds that its product is being sold as counterfeit or at an inflated price, it can use these identifiers to locate the source of the problem. Companies like Chronicled offer end-to-end supply chain monitoring, making the entire process more transparent from start to finish.
How Can Blockchain Ensure A Transparent Supply Chain?
Solving child labor issues requires a multi-faceted approach. Blockchain can provide a decentralized system for tracking and accrediting sources, such as mica mines in India. Companies like Betterkinds are working on certifying sources and materials. Even if only 10% of mica mines are legal, blockchain can help identify and track them throughout the supply chain.Why Are Big Corporations Failing To Live Up To The Mark?
Contrary to popular belief, large corporations often lack control over their suppliers. Suppliers dictate most processes, and while some companies set high standards, they’re left with poor options. Once a material is deemed essential, the only question becomes how to obtain it. What makes things worse is that many supply chains, including those in cosmetics, are outdated. They rely on paper invoices and money wires, which contribute significantly to the problem.
Solution:
Technology like AI and machine learning is still new to the cosmetic industry, but it's slowly driving digital transformation. This shift will make things easier for consumers, who now expect nothing less than convenience and transparency. Corporations need to invest in robust systems that meet all supply chain requirements. Integrating outdated and inefficient systems across the globe is essential. A backbone for information sharing and product tracking is needed. Blockchain offers the solution to every broken system and seems to be the only viable option for today’s complex supply chains. Taking cosmetic brands online helps them grow both commercially and technologically. It gives them access to a global consumer base and a better understanding of what customers want. Technology has transformed almost every industry, and it's time it revolutionized the beauty sector from top to bottom. Many cosmetic brands are showing a renewed interest in embracing technological change, which is long overdue and bringing new life to the industry.Kids' Beds,Rust Protection Children'S Beds,Cartoon Children'S Beds,Cartoon Kids' Beds
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