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Blockchain for Supply chain solutions

Posted September 2, 2022 Gyan Prakash
blockchain for supply chain

How Blockchain can transform the supply chain world?

Introduction

Blockchain is an extremely useful asset in the supply chain as it provides a blanket of transparency and trust. It has the potential to provide new opportunities within the supply chain, as the age of the digital supply chain increases. Blockchain for supply chain can potentially enhance an organization’s position by offering new and potential opportunities. We will examine the features, some use cases of blockchain for supply chain management and some attributes that can change the blockchain original time and value decision.

Blockchain Technology

Blockchain is a cloud based digital ledger. It is a technology that enables the verified data communication between each participant in a supply chain without an agent. In addition to that, it has the ability to increase transparency around the supply chain that enables people to trust a shared record of events.

Blockchain Technology for Supply Chain Solutions

Blockchain Technology in Supply Chain can be used by participants to record price, date, location, quality, certification, data management and other relevant information to successfully manage the supply chain. Also, It potentially increases an organization’s position  as a ledger in responsible manufacturing. Blockchain helps to increase the visibility of assets throughout the supply chain.

How can Blockchain technology transform supply chain management?

As the supply chain keeps on growing more complicated and knotty, blockchain technology is placed to become the solution to provide benefits. Focused around the visibility and availability of specific data permits transparency in the supply chain world and manages complex supply chain systems. Blockchain technology can assist managers/leaders to build and hold on to flexibility and moving into the future. It appears as a solution to extricate data, manage documents and handle communication exchanges within the supply chain ecosystem.

Benefits of blockchain in supply chain

Increase traceability of product to met co-operative  standards:

Blockchain ensures accurate tracking features and helps to maintain digital recording of physical and digital assets, unchangeable record of all transactions, and make it possible to track the product from the place of production to delivery.

Lower the losses from simulated market trading:

Blockchain Technology helps to lessen the frauds for expensive goods like pharmaceutical drugs and diamonds.It helps to know the concept of companies how components and finished goods pass out through all subcontractors and reduce profit losses from counterfeit market trading.

Improve the visibility and observation over outsourced contract manufacturing

Blockchain provides the same information to all parties throughout the respective supply chain. Less duration can be spent on seeking data and more on delivering goods, services and priorities.

Reduce paperwork and administration work: 

Blockchain can provide distributed, dispense and dependable recording features that help companies rely less on manual work. It smooth’s administration process and lessens the cost by enabling the effective audit of the supply chain including manual check ups.

Features of blockchain for supply chain solutions

Consensus: 

Blockchain technology can help to put forward the consensus to a wide range of warehousing, transportation, transactions and delivery.

Provenance: 

In supply chain provenance is the main feature. Blockchain technology enables to know exactly where products or raw material originated and its status in the supply chain. Professionals can quickly see who owned assets and at what time.

Immutability:  

Blockchain makes it incredibly difficult to counterfeit the payment transaction, warehousing condition, delivery time, etc.

Finality:

Blockchain helps to deliver a finality of products. It reduces disputes and provides better bonds within all partners.

Why are companies implementing blockchain for their supply chain solutions?

In blockchain transactions records are linked with each other sequentially in a chain as a series of blocks. Blockchain works within blocks that can’t be changed, hacked or tricked. There is a single source for any transactions and blockchain enables complete verification and auditability of transaction flow.

Some blockchain use cases for supply chain

Supply chain finance: 

Blockchain in finance can enhance the organization’s invoice processing and contribute more secure transactions.

Supply chain logistics:

Blockchain can help to verify, record transactions and coordinate autonomously without a third party.

Supplier payment: 

Blockchain technology facilitates fast, secure and low cost international payment through distributed ledger that trusts real time verification of transactions without intermediaries.

Cold chain traceability: 

Traditional cold chain logistics has problems such as centralized data storage, low data reliability, easy data tampering, and difficulty in locating responsible persons, which leads to the inability to guarantee consumer rights. To solve these problem a cold chain logistics traceability system is proposed for fresh agricultural products based on blockchain.

Food safety:

Blockchain has the ability to instantaneously trace the entire lifecycle of a food product. It can help you to get details from origin through every point of contract on its journey.

Conclusion:

Blockchain can be a strong tool for addressing inefficiencies and building a considerable room to improve end to end traceability, coordination, speed of product delivery, financing and many more. Also, it can greatly improve the supply chain by enabling faster and efficient delivery of products and management. Managers need to put efforts to build new rules with different technologies with various blockchain platforms and develop an ecosystem.

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