Blockchain in Supply Chains: Why CEO Christian Lanng Says It’s Not Ready Yet

The Reality of Blockchain in Supply Chains

In a world where tech buzzwords reign supreme, blockchain has become the darling of many industries, especially logistics. However, Christian Lanng, CEO of Tradeshift, isn’t buying the hype surrounding its capabilities in supply chain management. During a recent appearance at the World Economic Forum in Tianjin, China, he made it clear: the technology simply isn’t ready yet.

The Good and the Bad

Lanng acknowledged the positive aspects of blockchain when it comes to identity verification and certification processes. He pointed out that while it can effectively track authenticity and sourcing responsibly, using it for supply chains presents significant challenges. According to him, “It’s a great technology to manage that kind of flow and be sure of the integrity.” But there’s always a “but” in tech discussions, isn’t there?

Performance vs. Potential

He went on to emphasize, “The problem is just it’s not a high-performance technology.” So, while blockchain enthusiasts might have their heads in the clouds, Lanng keeps his feet firmly on the ground. He warned that the high expectations associated with blockchain’s potential are, at the moment, a bit premature.

Cost and Complexity

Aside from performance concerns, Lanng raised another red flag: cost hurdles and the complexities involved in creating a scalable deployment. When it comes to significant operations, the thought of the costs involved makes one think twice. After all, no one wants to invest in a technology that feels like trying to get your cat into a bath—messy and not very effective.

Success Stories and Future Promises

Despite these concerns, some organizations have ventured into blockchain territory with promising results. For instance, a collaboration between IBM and Maersk has garnered significant praise for its shipping supply chain product, illustrating that while the technology may not be fully mature, there are glimmers of success. Additionally, recent agreements, such as the one between Associated British Ports and Marine Transport International, signal continued interest in experimenting with this technology in logistics.