One technology that is revolutionizing diverse industries across all sectors is blockchain technology. Its significant features- decentralization, utmost security, transparency help address many challenges occurring at every stage of the supply chain. It offers a tamper-proof ledger to ensure data accuracy and allows every entity on the network to get access to the information instantly. Read this blog as we have discussed the role of blockchain in supply chain management in an understandable way.
{requestACallCTA}
The Basics of Blockchain Technology
Blockchain technology is a shared immutable ledger that keeps track of every transaction and asset in a transparent way. Introduced in 2008, this technology is rapidly evolving and expanding its range of applications.
As the name suggested, this technology consists of blocks, which are combined together to create a chain. This formation cannot be altered or deleted.
Prime Features of Blockchain Technology
The key features of blockchain technology are discussed below:
- It allows for several entities to participate in the network and verify transactions. Completely different from the traditional databases.
- Another significant feature one can avail using blockchain technology is its security. Once information has been recorded on the blockchain, it cannot be deleted with ease.
- Besides, several options are available, including private blockchains, public blockchains, and consortium blockchains.
In short, using this technology ensures record transactions in a secure and transparent way. No need for intermediaries, no centralised control.
The Definition: What is Blockchain in Supply Chain Management
Blockchain is a tamper proof, decentralized ledger technology that offers transparency and traceability when recording transactions and assets within a supply chain. By using blockchain, companies can reduce fraud and enhance efficiency, providing additional valuable benefits. They are:
- Companies can verify the authenticity of products, keep track of products, and ensure adhering the guidelines like humidity level and storage temperature.
- Validate data to prevent fraud cases or errors.
- Automatically execute payments, such as product deliveries in good condition, helping with cash flow.
Top Benefits of Incorporating Blockchain in Supply Chain Management
Incorporating blockchain technology in supply chain management offers a wide range of benefits, including:
Enhanced Traceability and Transparency
Blockchain implementation ensures transparency and recording all transactions and assets within the supply chain. It improves visibility by providing clear updates at every stage of the supply chain. Also, organizations receive up-to-the-minute notifications in case of delays, damage, or other issues that need to be resolved.
Boosted Customer Experience
Companies and organizations using blockchain can skyrocket the speed and manage their supply chain efficiently. This ultimately aids reaching the products to their targeted customers, improving overall experience. Blockchain in supply chain management keeps customers in the loop throughout the process so they feel associated with the companies.
Increased Efficiency and Performance
By using blockchain in supply chain management, establishments are actually automating the whole process, which leads to increased efficiency and reduced expenses. In addition, companies track inventory, streamline logistics processes and ensure high speed.
Smart Contracts
As the ledger shows all stakeholders, it can work with smart contracts, which carry out actions when particular terms and conditions are met. It not only prevents disputes about project milestones and contract terms but also streamlines the process with ease.
Reduced Expenses
By implementing blockchain in supply chain management, it gets easy for the establishments to lower costs across their process. This technology removes the need of intermediators, and also cuts down the cost associated with manual labour who remains busy keeping data in the traditional format.
{enrollNowCTA}
Blockchain Use Cases in Supply Chain Management
This revolutionizing technology can transform the supply chain management with the following three use cases:
Traceability
Blockchain can enhance efficiency in the operational level by visualizing enterprise supply chains. In short, it helps companies understand their supply chain and hook customers with real data.
Transparency
This decentralized virtual ledger aids generate trust by collecting vital data, such as certifications and claims, and then offers access to this data publicly. After it gets registered, third-party attestors verify its authenticity. Hence, organizations get access to updated and validate information in real-time.
Tradeability
Tradeability is a unique feature that helps "tokenize" an asset. It means one can split an object into shares and gain fractional digital ownership. The person gets tokens that are tradeable and can transfer his ownership online(without the physical asset).
Application of Blockchain in Various Sectors to Manage Supply Chains
Here are some examples of industries which use blockchain framework to improve their supply management:
Logistics and Shipping
In the logistics and shipping industry, blockchain framework has been proven a game changer, offering a safe and reliable way of tracking goods. With the help of this technology, companies can supervise the entire process, from products picking up from a warehouse to deliveries to the customers, with efficiency and accuracy.
Healthcare Industry
For the healthcare industry, blockchain offers a fast and secure way to manage inventory. It can regulate records of every patient and tracks the movement throughout the supply chain. In addition, it also allows patients control over their health records.
Manufacturing Industry
As the manufacturing industry deals with complex processes, using blockchain in supply chain management has been recommended. This cutting-edge framework provides manufacturers relief from tracking each movement of goods and enables them to streamline the process. Distributed Ledger Technology eliminates the likelihood of any counterfeits and ensures adherence to compliance to maintain standards.
The Final Word
The future of blockchain in supply chain management is really promising. That is why more and more industries and sectors are showing interest in adopting blockchain technology and willing to establish a more efficient and interconnected system. It means demand for blockchain developers will skyrocket in a few years.
Are you ready to seize this opportunity?
Then enroll your name in blockchain in supply chain management courses online. Opt for Amity University Online for doing a Blockchain certification course. Our advanced curriculum is able to cater to the market’s growing need of Blockchain Technology professionals. So visit our website today and experience a new world of learning.
