Blockchain in Supply Chain: A Better Optimization of Modern Logistics

Blockchain technology is revolutionizing various industries across all sectors. The nature of decentralization and transparency speaks for its widespread popularity. It caters to a better management of modern logistics in essence. In this blog, we will discuss blockchain in supply chain management and the benefits it brings to business systems.

What Is Blockchain?

First things first, let's get to know about what is Blockchain actually is. For those unversed, a Blockchain refers to a decentralized virtual ledger. It securely stores records across a vast network of computers in a way that is resistant to tampering and transparent in nature. Blockchain also oftentimes gets referred to as Distributed Ledger Technology (DLT). 

Application of Blockchain Framework in Various Sectors

Blockchain in supply chain management is an absolute game changer for supply chain management. This is because it provides accountability, transparency and a non-tamperable record of services and goods. Here are a few ways how different industries use blockchain supply management:

• Healthcare Industry

Blockchain enables the healthcare industry in inventory management in a fast and secure way. For example, it helps regulate patient records and track the movement of pharmaceuticals throughout the supply chain. It also grants patients more control over their health records. 

• Logistics and Shipping

Blockchain provides a secure and reliable way of tracking logistics. It provides a way for monitoring the whole process of goods getting picked up from a warehouse to shipping to consumers. It also actively fosters compliance by reducing any scope of errors.

• Manufacturing Industry

It is known that any type of manufacturing industry has complex processes. Blockchain provides relief from tracking the movement of every individual goods by streamlining the process through traceability and visibility. This actively eradicates the scope of any counterfeits and fosters compliance with standards.

Benefits of Using Blockchain for Supply Chain Management

Blockchain management has a great capacity to provide potent value for organizations by reducing the risk of the supply chain, improving visibility and creating transparency across an ecosystem. Here are a few benefits of utilizing blockchain technologies for supply chain management:

• Fosters Data Integrity and Reduces Risk

Blockchain actively promotes data integrity according to the highest possible standards. The inherent nature of blockchains is such that they are non-tamperable in nature. This means that they cannot be modified. Such networks also have a very strict risk management system as they incorporate the best practices which reduce any risks against fraud. 

• Promotes Visibility and Trust

Blockchain is built on the foundation of being transparent and decentralized in nature. This actively improves visibility and generates trust amongst partners of the supply chain. It also improves accountability between the involved members and decreases the scope of any error made. 

• Provides Better Customer Experience

Businesses with the help of blockchain speed up the process of blockchain in supply chain management and this helps make the products reach their intended customers more quickly and efficiently. Blockchain helps the customers stay in the loop throughout the whole process of the supply chain. This makes them stay informed and creates a better experience with companies.

• Cuts Down on Costs

By incorporating blockchain in supply chain technologies, companies can cut down on costs across their supply chain. This is because the need for intermediaries gets removed and hence the costs associated with it too. Blockchain also helps cut down on manual labour costs required for the traditional recordkeeping of logistics data. 

How Blockchain Will Fuel Modern Supply Chain Management?

Blockchain technology has already started to transform the nature of supply chain management. Here are a few ways how it is going to be integrated even more into modern business logistics management operations:

• Increased Fusion with IOT

The IoT or Internet of Things is already used in a lot of supply chains for businesses across varying industries. In the coming days, Blockchain will get fused with IoT to provide even better visibility and transparency amongst business partners and their customers.

• Advent of New Business Models

As blockchain technology continues to evolve there is going to be an advent of a lot of new business models. They will also have additional capabilities and features which would enhance the traceability and transparency even more.

• Sustainable Future

Blockchain technology is going to foster sustainable development through varying solutions. For example, it will enforce solutions like energy systems, carbon credit trading and supply chain management. 

Final Word

The future of blockchain in supply chain is really promising and would actively ensure compliance with ethical standards and policies. More and more businesses are expected to adopt blockchain management practices to create a more efficient and interconnected ecosystem. It will benefit everyone involved in the process from companies to customers.

As you can gauge from reading all of the information above, Blockchain is going to have a significant impact on the logistics, services and traceability of companies across all industries. This positively creates a demand for novel skill sets that can be used to revolutionize industries. 

There's no better way to learn this skill set than doing a Blockchain certification course from Amity University Online. This is an advanced curriculum that has been designed to cater to the growing need for expertise in Blockchain Technology. So what are you waiting for? Enroll today to experience a new world of learning and gaining expertise.

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