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Role of Digital Supply Chain in the Metaverse

source-logo  cryptoknowmics.com 27 April 2022 17:57, UTC

The metaverse has emerged as the darling of the digital world since Facebook changed its name to Meta in a public announcement last year. The announcement that Meta Platforms will create an immersive virtual world using the developed technologies drove up public and investor interest  The metaverse was in this frame, painted to be the next big thing, revolutionizing how socialization on the internet is done. This digital marvel would also transform commerce, finances, and management by changing how people experience things. While these specifics of the metaverse’s full capabilities remain obscure, the “second wave of the internet’s” potential is boundless.  Given that many businesses want to get ahead in this digital world, supply chains have become a key area of focus. Supply chains refer to the systematic activities necessary to convert raw materials to finished goods delivered to consumers. These supply chains affect the majority of the companies as the world becomes even more immersed in the internet.  The system also includes service provision at various stages. The adoption of the metaverse alongside blockchain technology is bound to revolutionize the processes of e-commerce. How this happens will be discussed below. 

A Detailed Look at the Transformation in the Metaverse

Creating a digital network centered around the necessary supply chain management processes is a monumental achievement. The involvement of the metaverse is bound to hasten changes affecting the companies in the near future. On top of making a network, the digital chain will aim to collect data in the stages between companies and their consumers.  This transformation is set to influence some areas of business operation that may include purchasing, planning, manufacturing, packaging, delivery, and supervision. The data collection and real-time transmission aspect of these networks will take things to the next level in many different supply chain sectors. In the metaverse, planning is essential for companies to achieve productive outcomes. Good plans organize tasks, resources, and manpower to make the organization profitable. The digitalization of this process via existing technologies will smoothen and enhance the data collection process using chips connected to the virtual network. This technology’s use is also applicable in manufacturing processes that include multiple stages. Through real-time tracking, the manufacturing process can be better documented or altered to improve productivity.  The monitoring of these processes mentioned above and data analysis adds to the element of supervision that can be carried out. Using the real-time reports in the network, companies can better adjust to make administrative and strategic decisions affecting the companies’ ability to become profitable. 

What these Changes Mean to the Companies

Due to the nature of the changes, there will be increased use of data collected from online networks. The availability and use of this data will lead to three major changes:

1. Transparency

Creating this digital network data will result in the creation of a chain of reliable and collaborating vendors to achieve mutual outcomes. The individuals and businesses will have online profiles that showcase their records. The digitized process will also allow negotiations to be visible online. This visibility improves transparency and is straightforward for the different stakeholders. These actions greatly improve security and lower the risk of fraud.

2. Efficiency

In the modern supply chain, there exists a lot of wastage and lags due to various factors. In some cases, factors such as warehouse operations, lack of collaboration, and poor planning may result in inefficiency. These deficits cause losses, and thus, where they are removed, profitability increases.  Using the data collected and analyzed in real-time, chinks in the system can be identified to improve system flow. The metaverse will help businesses better manage themselves using immersive real-time via some degree of automation. Therefore, supply chains become more efficient by eliminating wastage and improving collaboration and organization.  

3. Costs

Due to the improvements drawn across the whole board, costs incurred by businesses and customers are bound to lessen. The metaverse will create an immersive world where customers' individual needs can be catered to in the fastest possible way. Businesses' operating costs will also go lower as real-time tracking of goods is done. This additional supervision and automation of some processes will reduce the wastage of resources.

Author’s Thoughts 

Following the announcement of the metaverse, businesses were in a rush to get ahead of the developments. Supply chain management is a key area affected by this change. As the metaverse makes the world more digital, it helps businesses network and collaborates on a large scale that maximizes profitability. The metaverse's immersive and data transmission abilities can transform businesses into even more profitable ventures.  The use of available technologies to add to the virtual experience will result in overhauls of the system. These changes will improve speed, efficiency, and transparency while lowering costs. Adopting this metaverse-backed system is thus a change every business venture should embrace going into the future. 

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