How DiMuto’s Digital Asset Creation (DAC) is Revolutionizing Global Supply Chains
When the phrase “digital asset” is mentioned, what comes to mind? Here at DiMuto, we regularly use the term to refer to fresh produce like apples, durians, squash, avocados and other food products from all over the world.
Thatʼs because our clients are able to transform physical goods like fresh durians into digital assets with DiMutoʼs Digital Asset Creation (DAC) service – We recently blockchained the worldʼs first block- chained durian.
What is Digital Asset Creation?
Digital Asset Creation (DAC) is essentially, surmised as the creation and assignment of a digital identity to a specific physical product. This simple yet transformative process brings a whole new level of visibility to supply chain partners previously never seen before.
The Land of The Blind and The One-Eyed King
This game changing application of trade technology revolutionizes the supply chain completely by lighting up the age-old black box that occurs whenever the physical product passes from one touch- point to another as it moves through the supply chain.
The black box in the global supply chain industry is obvious when you take a closer look at the numbers. A trade dispute can tie up as much as $100 million USD, as estimated by IGF. In the food trade industry alone, the cost of food safety breaches and failure to prove food origin and safety easily amounts to over US$40 billion a year.
One third of food produced for human consumption is lost or wasted globally – that translates to more than 1.3 billion tonnes of food annually that failed to reach consumers’ tables.
Since time immemorial, there has been no single, efficient method agreed upon to prove supply chain partners have conducted trade in a fair and honest manner.
Receivers claim that they received less-than-ideal goods while growers or packhouses insist they provided goods with the best quality.
As good pass through each additional touchpoint, there often is a breakdown of information and lack of visibility on the product thus resulting in such disputes being commonplace, and subsequent difficulty in detecting fraudulent claims. Many businesses face the challenge of settling trade disputes in a fair, informed, efficient manner.
In other words, operating in the modern agriculture industry is akin to operating in the land of the blind.
And by bringing visibility to the table, DAC is championing small and medium growers and agri-businesses to be The One-Eyed Kings in their individual trade networks.
Collaborative Commerce and the 4Ts
The moment a physical asset like fresh produce can be digitized, businesses can easily track not only the movement of the product but also critical product information such as quality, health certificates, certificate of origins, product photos tagged to the specific individual product, as well as relevant trade documents surrounding each supply chain transaction.
Such data is first captured in secure, sequenced blocks of information under the productʼs digital identity and automatically uploaded onto our blockchain-powered Track & Trace Trade Platform.
Companies involved in the trade regarding the product can then be simultaneously updated on access-controlled relevant information in real-time. They can also easily track and trace the productʼs downstream movement and encourage transparency through the sharing of information with each other, therefore building trust – thus having the 4Ts.
As a synchronized shared record-keeping platform, DiMuto Trade Track & Trace guarantees the immutability of product and supply chain data – every transaction made cannot be altered; a new block of information is simply made every time a change is made.
No one party has exclusive records of trade information that often results in inefficiencies, fraud, trade disputes and unfair resolutions. The shared and synchronized ownership of supply chain information builds a collaborative business environment where trade can be conducted in an informed, fair and sustainable manner, encouraging the rise of Collaborative Commerce.
Discover how DiMuto can help to transform your business today. Reach out to firstname.lastname@example.org for a free demo and workflow consultation.