How Blockchain Is Revolutionizing Supply Chain Management?

The underlying technology behind all the cryptocurrencies is Blockchain. Basically, blockchain is a public and decentralized ledger of transactions across a network. No one can tamper with or change the data, which makes it great for record keeping. Many people believe that Blockchain can do much more than just cryptocurrencies, affecting nearly every facet of our lives.

Blockchain has begun to challenge the practices that businesses are using. Many industries are now considering using blockchain as it drives greater transparency and veracity across the digital information ecosystem. One of the most rising applications of blockchain is in supply chain management. It helps the supply chain partners with a solution to their hurdles by introducing them to a completely transparent, tamper-proof history of the information flow, inventory flows, and financial flows in transactions. Want a reliable, efficient, and a secure Blockchain solution for your industry? Contact us. In the case of cryptocurrencies, blockchain enables unlimited anonymous participants to transact confidentially and securely with one another without a central intermediary. But for supply chains, there should be a limited number of known parties to protect their business operations against malicious actors while supporting better performance.

How Blockchain Improves Supply Chain?

Provenance Tracking

For highly regulated industry tracking of Supply chain is important. These industries have many elements that are part of the Supply chain and can be difficult to track all of them. Difficulty in tracking may lead to consumer issues like product quality that can defame the company name. To overcome these issues industries can use blockchain technology to track each product from the time of manufacture till it reaches consumers by using embedded sensors.

Fraud Detection

Supply chains are complex and have many stages where people can commit fraud and go undetected. To prevent these fraud issues companies can use blockchain which improves the transparency and traceability of products. Blockchain is an immutable technology that cannot be tampered with. Blockchain validates any update through consensus among network participants. Moreover, for easy tracking of product, the information on products is digitized.

Everledger uses Blockchain to ensure the banks, insurers, open marketplaces, and consumers that the stone is authentic.

Cost-effective

As businesses depend on the global supply chain, logistics industry has a more pivotal role to play. Freight brokers control the market and assist in transactions with additional markup. This results in additional costs that are pushed downstream to consumers. These additional costs is reduced by blockchain as transactions is occurs through cryptocurrency with no middleman.

Immutability

No one can tamper with, or delete the data once it is entered in the blockchain. As it is a chain of blocks and to bring change in one block you have to go through all the blocks which is an impossible task. Moreover, once you have entered an amount in the record no one can add the extra payment to the record.

Transparency

Transparency is a crucial factor in the supply chain. As many things are involved in the supply chain and one thing is connected to the other. Hindrance at one step can disrupt the whole chain. So, to maintain transparency Blockchain is the best possible solution as it provides all parties within a respective supply chain with access to the same information through a chain of data sharing. Blockchain transparency helps industries by reducing the chance of discrepancies in the documentation and allows parties to see evidence of the counterparty’s past performance, including delays in delivery or payment.

Saves Time

Blockchain helps to reduce communication and transfer errors. Which saves the time used for validating the information. Industries can use this time for more beneficial tasks such as delivering goods and services while improving quality and reducing cost.

Smart contracts

Smart contracts are computer programs that perform a task when triggered by the occurrence of a predetermined event. These contracts can help in payment transfer from the retailer when the supplier delivers the goods. Smart contract helps in avoiding all kinds of frauds.

Blockchain Supply Chain Companies

• Walmart
• FedEx
• EverLedger
• Corning
• Emerson
• Hayward
• IBM
• Mastercard

Conclusion

There is considerable room for improvement in the supply chain management system in terms of end-to-end tracking, delivery speed, coordination, and finance. Blockchain technology can fill in these gaps, thus removing any middlemen and frauds that industries have to face. Blockchain will introduce transparent, quick, and fraud-free delivery of goods, thus providing great benefits to industries. Contact us for Blockchain development solutions.