For Ambrosus, the topic of supply chain regulation and security is an important topic that holds serious potential. Ambrosus solutions have tremendous potential to transform and radically improve government regulation and policy on global supply chains. In this sense, there are specific incentives and opportunities that governments have if the products within their jurisdiction make use of Ambrosus.

Importantly, in order to fully grasp the transformative potential that Ambrosus holds for governments around the world, a brief explanation must first be given concerning the threat that global supply chain’s may pose to a country’s national security.

Supply Chain Security: Vulnerabilities

For many people, a global supply chain is primarily an industrial process; more often than not, governments do not appear too concerned about what citizens are allowed to buy or sell at a grocery story. Nevertheless, as global supply chains have grown in recent decades, the threat of supply chain disruption has also grown: as more and more people have become dependent on food, medicine, and utilities from around the world, more and more people equally stand to suffer from a sudden change in supply lines. Below is a brief breakdown of the three most daunting challenges governments face in protecting supply chains in the future.

Cybersecurity:

For any company that participates in a supply chain, the danger of a cyberattack is the most prominent concern. In a recent report from the Council on Foreign Relations, it was estimated that “80 percent of cyber breaches originate in supply chains,” and that “98 percent of manufacturing firms will experience a cyber related disruption to production” in the coming two years. These increasingly frequent disruptions can severely damage a company’s logistics system, cripple a company’s delivery orders, and ultimately steal precious intellectual property. For governments responsible for citizens who depend upon essential production lines, the threat of a cyber-attack has been estimated to be as effective as a traditional military attack. Supply chain security, is thus also a matter of national security.

Safety and Health:

Equally important for governments, beyond supply chain security, is the health and safety of their citizens. This specifically concerns supply chain visibility. Whether the product is a weed-killer that possesses cancerous carcinogens, or a box of medicine made with dangerous ingredients, governments are increasingly responsible for the quality of the materials that they permit inside their borders.

This specifically concerns the sourcing of precious materials and rare commodities: in 2016, the United States government amended Section 307 of the U.S. Tariff Act of 1930. This law now prohibits the importation of any goods made using forced or child labor. At the same time, the Chinese government has begun to track the provenance of special minerals in order to guarantee reliable trading routes. What these trends with the two largest economies in the world demonstrate, is that governments greatly benefit — both their citizens and their own domestic policies — when they take extra care to fully trace the products that enter their country.

In the future, governments will undoubtedly act upon larger trends which center upon consumer demand for sustainable, local, organic, and fairly earned products. Not only are such trends environmentally friendly, but they also provide increased efficiency and security for global supply chains regulated by governments.

Disaster Management:

Most importantly, governments must seek to regulate supply chain flows across borders as a matter of preparing for potential disasters. The prospect of an international pandemic, or an unforeseen tsunami and earthquake pose a tremendous threat to supply chain functionality. In a recent article by Foreign Policy, it is explained that due to the 2016 earthquakes in Japan, Toyota was forced to suspend production in one of its factories, due to an inability to get the necessary parts. As more and more supply chains adopt a “just-in-time” supply model, the threat of larger and more devastating disruptions equally grows.

At the same time, climate challenges in the form of drought, wildfires, and sea level rise also result in damages to products and commodities that hundreds of companies depend upon. Without clear oversight and management of such inventories, companies stand to lose massive amounts in profits, while governments are left in the ‘dark’ when it comes to protecting their citizens, and maintaining law and order. Tighter regulation from governments will most likely be implemented in the future to protect against potential ‘black swans’ in the global economy.

Ambrosus: The Supply Chain Solution for Governments

Unlike any other blockchain-based supply chain solution, Ambrosus operates a new generation public blockchain connected to a cutting edge Internet of Things (IoT) platform. What this means is that unlike a system whereby the largest companies own the keys to the network, the Ambrosus Network is completely decentralised among an ever increasing number of node operators. For the most demanding node operations, the selected node operators can be contracted, and certified against any form of illegal practice or money laundering. In this sense, as an independent and decentralised system, Ambrosus is the ideal platform for public sector stakeholders who wish to leverage a transparent, secure, and easily-manageable solution to supply chain uncertainties.

In terms of data management and optimisation, Ambrosus provides a two-fold solution for governments and companies alike: on the one hand, using Ambrosus dApps, and applications, a dashboard interface for managing supply chain logistics, product recalls, and disaster supply lines can be established on any client company or governments’ desktop interface. On the other hand, these applications can also be programmed with automatic smart contracts to respond to problems or alerts as they appear, as well as automatic payment transactions, and company insurance plans. Ultimately, governments and companies alike gain newfound oversight concerning threats to their supply chain systems, while at the same time client companies benefit from optimising the most important data for increased efficiency and profit.

Finally, with the Ambrosus brand, governments can assure their citizens that the products which enter their country are clean, safe, and sustainably sourced. Contaminated food, fake medicine, and products manufactured in less than humane conditions become identifiable. With Ambrosus applications, consumers and regulatory authorities alike possess the capability of scanning and verifying the origin, composition, and storage conditions of all products using the Ambrosus ecosystem. As a defense against the contamination of food, or future medicine scandals, regulatory authorities become capable of identifying the origin of outbreaks or malpractice and can thereby directly limit the effect that a supply chain failure has over its citizens. The potent effects of salmonella contaminated goldfish, lettuce infected with E. coli bacteria, and fake baby vaccines used on newborns, can all be minimized and eradicated.

Overall, with an ever increasing amount of global products entering new markets, fraud, disease, and unsustainable supply chain practices threaten global consumers, companies, and governments alike. Ambrosus promises an entirely new layer of transparency and accountability. For governments and regulatory authorities focused on global supply chains, the Ambrosus solution offers the most feasible manner of guaranteeing clean and efficient supply chains geared towards bringing healthy and secure products across the border.