Future of Supply Chain
Creating the Future of Supply Chain with Blockchain
This article is dedicated to those who want to know everything from the start by learning about Blockchain and then moving to Supply Chain with Blockchain.
A Brief Overview of Blockchain:
Simply put, Blockchain technology is an encrypted and distributed database that stores information. This is why Blockchain has become core integration in cryptocurrency. Integration of Blockchain can help businesses by offering efficient scalability in minimal time. Thus, Blockchain offers a global infrastructure of secure networks to help the users and businesses in several ways just like the Internet in its initial stage. Moreover, if you have a broader look at this latest technology, it will accelerate in other industries.
What Are the Benefits of Blockchain Technology?
Before you dive deep into the main topic that is considering Blockchain for Supply Chain, let’s have a look at the benefits of Blockchain Technology:
- Blockchain effectively increases time effectiveness. For that, you have to thank its real-time transactions.
- Blockchain is capable enough to reduce the risk of cybercrimes and other frauds on the Internet.
- It is known as a highly secure technology as it is featured decentralized and cryptographic protocols.
- Blockchain offers a transparent process with proper record initiation and straightforward tracking.
- Blockchain is now a widely used technology in developing countries to secure people’s data more extensively making it easy for more secure and faster transactions.
- Therefore Several industries especially financial, commercial are looking to use this technology because of its features like encryption, distribution databases, and a digital ledger of every transaction
- Now enterprises are to create a solution called ‘Smart Identity’ to ease the process of KYC using Blockchain.
Why Consider Blockchain for Supply Chain?
So, now you know the benefits of using Blockchain technology. That’s good! This is the right time for you to know how it works with Supply Chain, which is a process that involves two integral parties such as the vendor and originating company. The entire Supply Chain process goes like that, when you put an order with the vendor’s ordering system, it confirms the transaction and sends the required details to the warehouse. Then the packaging goes for shipping with a logistic company, builds a module for the final use and shipment, and finally it ships through a logistic company waiting to receive by the home pant’s receiving department. So, there are so many steps involved in Supply Chain resulting in a disruption in the Supply chain and derailing the whole schedule. Here comes the role of Blockchain technology that can ensure that everyone is on the same track.
Benefits of Integrating Blockchain Technology with Supply Chain:
- Sole-Source for Information: Blockchain being the single source, can offer transparency to every party involved at different levels of Supply Chain accessibility and ensure everyone is in sync.
- Verified Transactions: By integrating Blockchain, you can get the verified transaction without even relying on a third party. Moreover, it will also ensure a secure transaction and data safety for the entire Supply Chain.
- Easy Traceability of the Products: Blockchain will allow you to get an excellent level of traceability for the entire shipment of products. It can help everyone involved in the process can have an idea of whether they have the products or not. It is because the shipment of products arrives several months before they are sold.
- Quick Updates: Supply Chain management is all about managing time. With the integration of Blockchain, you can run the entire Supply Chain process efficiently by getting immediate updates to all parties involved. Thus, it will help in creating a more scalable, secure, and accurate shipping process from the very start to the end.
- Improve Overall Supply Chain Management: Blockchain is a technology you do with your Supply Chain partners by collaborating and cooperating. Thus, it can improve the relationships with your suppliers it requires.
- Satisfy Shareholders: Shareholders are more concerned about whether the company is doing the right thing or not. When you use Blockchain technology to provide traceability, it provides comfort to the shareholders.
So, without any doubt, it can be said that Blockchain is prominently the future of the Supply Chain. It is capable enough to change the Supply Chain ecosystem ranging from financial services, and cryptocurrency, to food and product shipments. It is predicted that this technology will become a focal point in Supply Chain in recent years. The more people begin to see the advantages of Blockchain, the more companies will adopt this cloud-based database by overcoming its few challenges. But, there is no denying the fact that Blockchain is making the Supply Chain more dynamic by enabling more effective use of resources for all parties involved including supplier, producer, distributor, shipper, retailer, and even customers. Moreover, you cannot ignore the benefits that it offers to the all-digital supply chain.
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