Supply chain management is currently undergoing a transformational moment. Past antiquated systems are proving to be unsuccessful in navigating the complexity and immediacy of the modern supply chain, and new models are emerging that promise to improve these systems.
In particular, blockchain, a prolific technology that began as the underpinning for digital currencies, is proving useful in this regard. Its decentralized ledger and smart contracts look to be particularly compelling for supply chain management.
The blockchain allows companies to cut out the middlemen, increasing value within the supply chain. Moreover, in every organization’s supply chain, numerous issues hinder transparency, efficiency, and communication, which are vital components of today’s supply chain ecosystem.
Indeed, the blockchain has significant potential to be the definitive solution for the future of supply chain management. That’s the goal of TEMCO, a blockchain-based supply chain data management platform for small and medium businesses. I met with their CEO, Scott Yoon, to discuss the problems facing today’s supply chains and the possibility of using blockchain technology as a solution.
You are not the first blockchain project aiming to revolutionize how supply chains work. What makes TEMCO different?
“For starters, TEMCO is the first blockchain project to receive investment from Korea Investment Partners (KIP), the largest venture capital firm in the country. We have vast experience in the South Korean supply chain industry and, since we are aiming for this market exactly, our expertise is of great importance”.
Yoon states that their technology is a differentiating aspect due to several factors related to its technology that make them unique – or so they say. TEMCO claim to be the first supply chain platform to be powered by the Bitcoin network through RSK, who are also their partners.
You’ve taken a new approach and decided to become the first project to be powered by Bitcoin, through RSK’s smart contracts. What led you to this decision? Why Bitcoin?
“That’s a great question, because there are so many compelling platforms on the rise. In the end, the benefits of Bitcoin outweigh the potential of any other network. For instance, RSK has a relatively low gas fee compared to that of other platforms, and the TPS was reasonably high, which makes it ideal for things like supply chain management where a lot of information is uploaded at the same time. In addition, Bitcoin’s network is the largest, most dominant, and most secure network. Therefore, it makes sense to us to be building on top of the future ecosystem for blockchain projects”.
To my understanding, you are aiming for the B2B market and not B2C. Will the everyday user get to enjoy your solution? Will he/she even feel you’re involved?
“Actually, TEMCO is offering both B2B and B2C supply chain solutions. For businesses, TEMCO has developed business intelligence tools that allow them to develop a dynamic supply chain using blockchain technology. However, to come to your question, we are very focused on the customer’s role in the supply chain. For example, TEMCO’s smart contracts provide real-time information to consumers, so they are can continually be updated on their product’s whereabouts. At the same time, they can make deliberate buying decisions based on the supply chain transparency.
What are small and medium business expected to gain from partnering and working with you?
“In many ways, TEMCO is the supply chain management solution for small and medium-sized businesses because it provides them with a comprehensive, blockchain-based infrastructure without the incredible monetary and personnel costs required to build something like this from the ground up”.
Yoon claims that TEMCO is very customizable. For example, each company can decide which data sets to upload and include on the blockchain. By allowing individual companies to show their own discretion about data inclusion they claim to have empowered each company to build upon their technology in a way that fits their exact needs”.
On top of becoming the first ICO to be powered by Bitcoin’s network, you’ve completely changed the way you interact with investors by utilizing a relatively new type of model called Public Exchange Offering. Could you expand more about it and why you chose to follow this road?
“I am not sure Public Exchange Offering is the best way to express this situation. What exactly is happening is that there are exchanges that offer pre-sales in Korea, and we have done some of that back in Korea. However, it is the first time this is done on a global exchange such as CoinBene. The way it works is that there is a new platform that makes token sales much easier, and in Korea, they call it “Simple Token Sale” if translated directly”.
We chose this way to make the public participate in our token sale with more ease. Since users do not have to complete KYC documentation every time they participate in a token sale, the users of the exchange do not have to go through all the complicated steps for ICO’s.
Yoon states that this arrangement is more reliable for investors because it requires less trust on behalf of investors and consumers by placing more owness on the platforms that host the ICOs.
“We believe in our platform and its ability to impact the future of supply chain management, so we want to position ourselves as a serious company in that regard”.
It’s no secret many people are skeptic about having a token for every single platform. Historically it is known that people tend to eventually stay with a few leading currencies or ways to transact, rather than spread their value across many stores of value. How will TEMCO be different? What justifies the token?
“That’s a great point. We don’t want to be just another token in a crowded ecosystem, but we feel the that the token offers enough benefits to users that it is worth creating and implementing. The TEMCO token ensures trust between vendors and consumers. Manufacturers and distributors are rewarded with points based on product reviews, and they can convert those points to tokens to pay for smart contract execution fee and /or BI tool service fees. As for consumers, as vendors and sellers try to provide better service, they can gain transparency. In return, consumers provide demographic information”.
As recent supply chain mishaps remind us, the modern global supply chain is desperately in need of an upgrade. For companies, these changes need to include the scale and nuance required to account for the many moving parts associated with today’s ecosystem. At the same time, the supply chain needs to be as transparent and accessible as possible, benefiting both companies and consumers. The blockchain is poised to provide the technological backbone for these changes, serving as the impetus for a number of profound changes in supply chain management.