N E W S & V I E W S • D E C E M B E R 2 0 2 4 11 4. Payment Execution: If the timber is successfully processed, the smart contract automatically executes payment to the timber grower’s designated account, which can include direct bank transfer to the grower’s bank account. Below is an illustrative example that shows how the process works in practice. This example highlights the key steps involved, demonstrating how blockchain technology facilitates efficient logistics and enhances transparency in the supply chain. Source: Blockchain technology for operational excellence and supply chain resilience: A framework based on use cases and an architecture demonstration. Taylor & Francis, 2024. The benefits for NCT Coupled with AI, the data from the blockchain can enhance our analytics by providing realtime information on timber harvested, volumes available, and offer optimised scheduling and routing to ensure efficient deliveries and reduced costs. Prompt action can also occur when there are supply chain disruptions such as mill closures. Is this a practical approach? Not yet. Integrating blockchain technology into existing systems and processes can be complex. The initial transaction costs associated with blockchain technology can be high. As mass adoption grows, these costs reduce with scalability. Currently, FSC is using FSC Trace to provide seamless and verified data throughout the entire supply chain. Built on blockchain technology they can demonstrate conformity with all regulations and compliance with EUDR. https://fsc.org/en/fsctrace Sappi has also explored the benefits of blockchain citing that “blockchain technology could add value to forest certification by offering a new and real-time way to trace wood from our forest” https://www.sappi.com/sappi-teamsup-with-major-global-brands-to-explore-thepotential-of-innovative-blockchain-technology Overall, it is important for NCT to recognise that staying informed about advancements can lead to continuous improvement. While full adoption of every new technology may not be feasible or necessary, identifying value-adding applications enables NCT to integrate beneficial features into its existing systems and operations, allowing the company to leverage the best tools available to support growth and sustainability. A futuristic view on AI in Forestry
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