Blockchain has become much more than just a buzzword now and its unique features are now being recognized and utilized by businesses all over the world. In fact, many people consider it an important invention since the internet. You can synchronize your ledgers in real-time to keep records, and the updates are done in any block are instantly reflected, without any chances of manipulation. As data is entered automatically and validated continuously, chances of human error are also decreased significantly. Many supply chain giants are thinking over to incorporate blockchain in their supply chain for tracking and recording data throughout the mining and delivery process. This enhances the efficiency and removes any chances of errors in the process.
The decentralization and transparency provided by blockchain technology is a game-changer and builds a layer of trust for business logic. You can hire blockchain development company to propel your business into the next industrial revolution due to the envisioned use of blockchain technology in setting new paradigms for doing business in many industries like transportation, finance, supply chain, shared economy.
What is Blockchain?
A blockchain is a distributed ledger or database that is immutable and holds the digital records of transactions or events. While many users may have access to inspecting and adding the data, they don’t have permission to edit or delete it. In case someone makes any changes, the original records stay permanently in the public information trail or chain of transactions or events. Moreover, the system is decentralized, i.e., no single organization has control over the transactions displayed, and it can be updated only by consent of a majority of the participants in the system. Thus, becomes easy and safe for businesses to work together over the internet using blockchain. A blockchain wallet app thus transforms the financial system making it safe, secure, transparent, and fast.
Is Blockchain meant only for tracking cryptocurrency transactions?
It is true that blockchain started off and became popular due to cryptocurrency transactions such as Bitcoin and was initially intended for financial transactions only. However, businesses have now explored that it is possible and beneficial to use the blockchain protocol for purposes other than cryptocurrency exchange. The blockchain ledger can be used creatively for recording, tracking, and verifying trade of virtually anything that is of value.
What are the shortfalls of the traditional supply chain management (SCM)?
The product is created and delivered to the end customer through the traditional supply chain management system. There are many processes, stages, and transactions involved in the process. The logistics are obscure, and a large number of invoices and payments are generated making the process of retrieving any information very complex. This problem is further enhanced in case the company has a global supply chain. Human errors and time delays may crawl in at the different checkpoints to make the system highly inefficient for vendors and suppliers in every checkpoint. This may also increase the ordering costs manifold.
What effect will blockchain technology have on the supply chain?
It is possible to track transactions transparently and securely with blockchain technology. You can also document and create a permanent history of a product starting from its manufacture to sale. Additional costs, time delays, and chances of human error are significantly decreased with the use of blockchain technology. The following tasks of the supply chain management system can be significantly improved with the use of blockchain technology:
- Maintaining logistics effectively: You can keep records of the quantity and transfer of assets as they are moved between supply chain nodes.
- Trade-related document tracking: Purchase orders, any variation of orders, dispatch of receipts, shipment notifications, and other trade-related documents can be tracked using blockchain technology.
- Provenance: You need to assign or verify certifications or certain properties of physical products. For example, it needs to be determined if a food product is an organic or fair trade.
- Identification made easy: Blockchain is responsible for linking physical goods to serial numbers, digital tags like RFID, bar codes, etc.
- Easy information sharing: It becomes easier to supply the needed assets and sharing the information related to the process at all levels like manufacturing, assembling, delivering, and maintenance.
What are the advantages blockchain offers to SCM?
- Improved transparency: Transparency is highly lacking in the traditional SCM process due to the obscurity of the process right from the warehousing to delivery and payment. Blockchain technology eliminates this obscurity as it produces bias-free and trustworthy content. The journey of the product across the supply chain to determine its interests in the supply chain and its true origin is revealed using blockchain technology.
- Enhanced scalability: Any number of participants can access the SCM app from any number of touchpoints, thus making it highly scalable. In different companies, it can be scaled as per the need easily. Whatever the size and extent of the supply chain of a business, a single platform is enough to allow the seamless exchange between multiple entities.
- Augmented security: As the ledger is shared but immutable due to its coded rules, you can be carefree about the security of data and records. This also potentially eliminates the need for audits of the internal systems and processes.
- Increased innovation: Due to the decentralized architecture of the technology, it offers many opportunities for creating new, specialized uses of technology.
Wrapping up Management of the supply chain of any scale is not an easy task, but blockchain technology can significantly ease the process if the right sets of features are associated with it. To make the full use of the blockchain technology in your SCM process, blockchain development company who provide enterprises with unrivalled SCM and smart contracts. The profits of the business and the strength of relationships across the supply chain can thus be increased across the supply chain. These cryptographic ledgers having proof of origin, shared datasets, transparency, and innovation potential can significantly upgrade a business.
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