SMX (Security Matters) PLC (NASDAQ: SMX) Unlocking Multi Billion Opportunity with Supply Chain Network Technologies

Demand for solutions that allow companies and businesses to track and trace products in supply chain networks is on the rise. While such solutions help companies manage their supply chain and mitigate the risks, it has given rise to a market growing at a compound annual growth rate of 19.3% and is expected to be worth $14.3 billion by 2030. SMX (Security Matters) PLC (NASDAQ: SMX) is one company that has embedded itself in the growing segment and tapping into the multi-billion opportunity.

SMX Tracking and Tracing Technology

SMX is increasingly transforming and enhancing the supply chain network through heightened tracking, tracing, and measuring. Backed by proprietary technologies, the company is allowing clients in multiple industries to see the entire history and composition of raw materials, from when they are sourced to the final products and when they are recycled.

Therefore, its tracking and tracing technology has become an important resource for better managing manufacturing challenges while addressing environmental, social, and governance (ESG) concerns. With the technology, SMX has emerged as a market leader in enabling businesses and companies in various industries to know the origin, purity, and integrity of raw materials in multiple industries.

The innovative technology is thus empowering various industries to only deal with raw materials and final products sourced through sustainable processes. It is also enhancing better recycling, consistent with conserving the environment and fostering regulatory compliance.

Consequently, SMX is laying a pivotal role in helping various players align their operations with sustainability and supply chain goals. The push has made it easy for the players to align their processes with consumer demands around sustainability and the ever-growing government regulations.

Additionally, SMX boasts of a digital blockchain platform 3.0 that allows companies and fashion brands to recycle merchandise into higher-quality materials and products. The technology makes it easy for fashion brands to achieve accountability, transparency, and ownership throughout the third product’s lifecycle.

Increased Technology Adoption

Over the past few months, SMX has experienced a 100% increase in client adoption of its proprietary technologies that allow the tracking and tracing of materials across the entire supply chain network. Increased adoption comes from clients experiencing significant improvements in managing complex issues ranging from ESG standards to regulatory requirements in supply chain management.

“SMX has made critical inroads in penetrating vital industry segments and driving client adoption, and we expect the momentum to continue. As with any innovation and technology breakthrough, it takes time to adopt and integrate. We are now seeing the beginnings of that adoption with clients integrating our technology into their supply chain management,” said SMX Chief Executive Officer, Haggai Alon.

The high demand for the technologies underscores their effectiveness in helping clients navigate various ESG concerns in relation to how the materials are sourced. For instance, the tracking and tracing technologies are allowing clients in the natural rubber metals and minerals industry to mark and digitize materials on an immutable blockchain platform.

The clear and transparent data tracking systems also make it easy for clients to transition into a low-carbon economy by adhering to sustainable sourcing of raw materials and other products. With the technology, fashion brands can resort to a take-reuse-make-recycle model instead of a take-make-dispose model.

The new model not only reduces the need for raw materials and reduces wastage, but it also meets sustainable and financial goals. Therefore, the model should enable a sustainable future and use across various sectors.

Growing Revenue Opportunities

Increased adoption of the tracing, tracking, and measuring technology has paved the way for SMX to register significant revenue growth in 2023. The push is driven by signing a commercial relationship with Sumitomo Corporation late last year.

The agreement with one of the largest trading companies allows SMX to tap into a $35 million sales opportunity. Under the terms of the agreement, Sumitomo is to use SMX special security features on its tracking and tracing technologies to ensure the invisible labelling of nonferrous metals with its geographical origination. All the authentication information is to be linked to blockchain technology. The labelling process is to ensure ethical sourcing, recycling, and reuse of nonferrous metals.

The strategic partnership with Sumitomo expands SMX’s footprint into the $1.3 trillion nonferrous metal by enhancing the labelling and tracking of the metals in supply chain networks. In addition, it builds on yet another commercial partnership with tire manufacturer Contented AG.

The agreement with Continental AG marks the first time that a unique tracking and tracing technology is being used to track the sourcing of natural rubber used in making tires. Given that Continental AG is committed to ensuring 100% sustainable sourcing of carbon-neutral robber, the technology will greatly help.

The German tire company has already won an Environmental Achievement of the Year award for implementing the SMX technology and only dealing with natural rubber sourced from sustainable forests.

The commercial relationships with Summation and Continental AG allow SMX to make its technology available in other industries. SMX is already sourcing commercial relationships in the metals and mining industry to enhance the labelling and tracking of precious metals in supply chain networks, including gold and silver. The push is part of a drive to unlock new revenue opportunities with unique technology.

SMX has already secured $3.24 million through an underwritten public ordering of securities. With the new financing, the company is in a solid financial position to pursue growth opportunities by inking commercial relationships in various industries.

Bottom Line

SMX is in a phase of robust growth amid increased adoption of its tracking and tracing technology in supply chain networks. The inking of commercials deals with various companies and brands underscores the technology’s effectiveness in ensuring real-time monitoring of materials, enhancing ESG reporting and compliance.

The heightened demand from the fashion industry, mining, retail and their sectors underscores the tremendous opportunity up for grabs. Consequently, the company is well-positioned to unlock new revenue opportunities that should help strengthen its bottom line.