ChrisXavi It is estimated that at current price, world’s inventory would be roughly 25 to 30 trillion US dollars. To put this in perspective, the US federal budget is about US $ 4 Trillion only. Such inventory represents locked up value. To release this value, further investment –such as in manufacturing, distribution and logistics is required.
Product movement in existing SCM networks cannot be leveraged, which causes liquidity crunch, leading to resistance
Current SCM networks are not transparent, that is, at any time, status of a product is not known. Only endpoints of a link (receipt of raw materials and dispatch of finished products, for example) can be known with some certainty and that too on/after the event. This lack of transparency, inherent to present SCM networks, prevents various participants from taking informed, timely decisions, thereby increasing resistance.
Virtualgodown aims to simulate supply chain management as it happens in the real world, while making the full chain completely transparent, responsive and frictionless thereby obviating problems as above leading ultimately to a reduction in inventories and associated costs. Even a 10 % reduction in worldwide inventories can translate into an asset unlocking of about 4 trillion dollars!
