How Blockchain is Revolutionizing the Supply Chain Industry?
Blockchain is the most spoken-about emerging technology with numerous applications across many industries. But the question is can blockchain able to modernize the shatter and ineffective logic industry? Based on the potential to extreme change the way economies function, the Blockchain has been nominated as one of the top ten emerging technologies by the World Economic Forum.
The most prominent use of the Blockchain is in cryptocurrency, blockchain has more potentials to change the procurement and supply chain functions. Technologists of the blockchain have predicted that it to have a large amount of impact throughout many industries/organizations including the logistic sector.
Blockchain technology is one of the distributed highly secure platforms, on which everything like money, music, stocks, bonds, intellectual property, and many more can be stored and exchanged Blockchain without using any powerful mediators in the logistic industry will likely be used as a distributed record. This can provide much better transparency during the existence of the shipment.
The blockchain data is decentralized and once created cannot be changed, thus creating a more transparent and secure information way that would follow a shipment from start to destination. Because of the complexity and lack of clarity of the current supply chains, many organization/business have begun to take into account how blockchains might change the logistics and supply chain industry.
How Will Blockchain Technology Affect the Supply Chain?
The possibility of the blockchain presents across the supply chain is huge, this fact of the blockchain technology permits us to more securely and transparently follow all types of transactions. For example, The transaction can be documented, whenever the product is moved across the supply chain, creating a permanent history about the product, from manufacture to deal.
This will leads to several benefits such as reduce time delays, added costs, and reduce human error that affect transactions largely today. Blockchain gives consent it limits dispute in the chain regarding transactions because all things on the chain have the same version of the record.
Everyone can see the chain of ownership for an asset of the blockchain. Additionally, the records on the blockchain cannot be erased which is essential for a transparent supply chain. Because of this, it can improve the performance and clarity of supply chains and positively impact everything from warehousing to distribution to payment.
How the Blockchain technology could improve the supply chain
- Blockchain allows to record the quantity and transfer of assets as they move between supply chain nodes.
- All the purchase orders are easier along with change orders, receipts, shipment notifications, or other trade-related documents, all these are possible to track because of Blockchain.
- Blockchain allows verifying the certificates/documents or specific properties of physical products.
- Blockchain makes it simple to share information about the manufacturing process, assembly, delivery, and maintenance of products with suppliers and merchants.
- Blockchain improves security.
Benefits of Blockchain in Supply Chain
Increase Supply Chain Transparency
The supply chain industry system can be restricted by one-up/one-down visibility. Blockchain supply chain through the distributed record technology provides a shared, single version of the truth which gives permission to blockchain participants greater visibility across all supply chain activities.
Build a flexible supply chain
A cascading array of supply chain divisions can cause because of only one unexpected event. Blockchain supply chain solutions use smart deals that automatically trigger when pre-defined business conditions are met, once the unexpected event can cause a cascading array of supply chain disruptions. This gives near real-time clarity into operations, and the capacity to take action first should there be an exception.
Modernized supplier onboarding
For both buyers and sellers in a supply chain, new supplier onboarding is a time-consuming In a supply chain to get the new supplier onboarding is a time-consuming, manual experience for both consumers and retailers in a supply chain. This process can speed up by the blockchain supply chain solutions using an immutable record of new vendor details that business network participants can trust.
Blockchain Supply Chain Examples
Blockchain and Oil Supply
Implementing Blockchain into the Oil supply having various benefits like it helps to track the oil from well to customers, recording transactions every step of the way. In the United Arab Emirates, a state-owned oil company has successfully launched a blockchain supply chain pilot program collaboration IBM.
Blockchain and Diamond Supply
The huge problem in the diamond industry is the working conditions under which they are removed. Most of the time, diamonds are mined following violent circumstances or in unsuitable conditions. The blockchain supply chain program can track the diamonds from one mine dip the cutter and polisher, up to the jeweler.
Blockchain and Food Supply
The food industry requires records to trace each product to its source. However, Walmart, IBM, JD.com, and many more are going to the performance with their blockchain technology.
Blockchain and Fashion Supply
In the fashion supply the aim for the customers to able to track every aspect of garments, In this way, blockchain will make sure that the obtained clothing is received and produced in plants that do not break the employees’ working situations.