Crypto enthusiasts and blockchain experts, around the world, are aware of how the blockchain network is the technology of the future and how it empowers various sectors in a many different way. The distributed record database of the blockchain maintains a tamper-proof account of logged data. While more information can be added to the chain, existing blocks can never be removed. This ensures that everything is transparent and open to the public for verification and shall remain so for posterity.
This presents an amazing opportunity for supply chains who wish to reduce downtime and improve their efficiency and productivity levels. The item is permanently tracked and logged from the time of sourcing of material to manufacture and all the way until the final purchase made by the customer, while also giving scope for feedback to be linked onto the blockchain.
Some of the key areas of interest in the supply chain where blockchain tech will come in handy include:
- Inventory Tracking — Most businesses have a large inventory to take care of, and manual, centralized or offline record keeping simply may not be foolproof or fail proof. There is always the risk of data loss or manipulation. However, with supply chain’s blockchain solution, you are always a step ahead, with destruction-proof data logging.
- Material Transfers — With the help of this decentralized tech, you can now track material transfers across your various nodes and log them in real time. This ensures greater accountability and improved accuracy.
- Warehouse Management — Managing items entering and exiting your warehouse becomes easier when blockchain is involved. There is constant monitoring and verification of data, thereby minimizing the chances of fraud or any deficiencies in the process.
- Collating the entire chain — Often the problem with supply chains is that it never truly is a chain, and most of the times there is a link only with the immediate preceding point of contact. With blockchain however things are different. No matter what point you are in the supply cycle, you can trace back every instance to its source/origin. This creates a sense of solidarity and belonging among stakeholders at every stage.
- Information dissipation — Most importantly, having a public record of all the activity that has taken place in the supply chain makes it easy for the company to distribute/dissipate information in a free and transparent manner.
Why adopt blockchain technology in the supply chain?
- Accountability — Every stakeholder in the process is held accountable for their actions as it is publicly visible
- Transparency — Any information required by the stakeholder can be easily accessed without being masked or withheld by any entity.
- Scalability — Blockchain allows for infinite blocks on its ledger, and hence no matter how big the company becomes ultimately, scaling is never an issue.
- Innovation — Backed by the latest technology, the supply chain industry will benefit greatly across all areas of business
What are the tangible benefits of the blockchain technology?
For Suppliers: The suppliers stand to benefit from real-time data on the requirements of the sellers. They are able to generate reports on the fly, as to what is necessary and what needs to be prioritized.
For Sellers: The sellers are able to properly gauge the timelines for the supply of materials. They are also able to share precise information in a seamless manner with suppliers, partners and customers.
For Partners: The partners are able to keep track of the health of the project, and whether it is being properly implemented and executed. This enables them to provide additional assistance whenever necessary.
For Customers: The customers are able to track and trace back the origins of the product, as well as learn about what they are purchasing in detail. There is no scope for unsubstantiated claims by the seller.
Thus, it is clear that blockchain technology will be the driver of change and empowerment in the supply chain industry.
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