Blockchain for Supply Chain – Affects

supply chain-blockchain

Blockchain is a disseminated database that holds records of digital data or events making them tamper-resistant. If this is the case, imagine the scope blockchain would provide across the supply chain with its transparency and the security to track all types of transactions. So, Let us try understanding how blockchain affects the supply chain.

The transaction can be recorded, creating an unalterable history of the product, from the manufacturing till the sale; every time a product changes hands. This can drastically reduce the time delays, additional costs and possible human error that torment the transactions today.

Some of the supply chains have already adopted this technology. Experts predict that blockchain could become a universal “supply chain operating system” soon. Listed below are the tasks that can improve with the blockchain technology.

  • Registering the quantity and shift of assets – like trailers, containers, goods, etc. – as they relocate from one supply chain node to the other.
  • Tracking the shipment notifications, purchase orders, receipts, change in the orders and other related documents.
  • Assigning or verifying certifications needed or specific properties of  the products; for example, determining if a food product is an organic or fair trade
  • Linking physical goods to barcodes, serial numbers, digital tags like RFID, etc.
  • Sharing information about the manufacturing process, assembly, delivery, and maintenance of products with suppliers and vendors
supply chain
Benefits of Supply chain

Blockchain offers the following advantages in the supply chain:

Improved Transparency

The exact origin and touchpoints of a product’s journey are revealed through documentation. This helps in building the trust and helps in extinguishing the bias found in today’s opaque supply chains. Manufacturers can reduce any kind of recalls or errors by sharing logs with OEMs and regulators.

Greater Scalability

Virtually any number of participants, accessing from any number of touchpoints, is possible. This improves the ability of a computing process to be used or produced in a range of capabilities.

Better Security

A shared, indelible ledger with codified rules could potentially eliminate the audits required by internal systems and processes. The supply chain, in turn, becomes more secure and error-free.

Increased Innovation

Opportunities proliferate to create new, specialized uses for the technology as a result of the decentralized architecture.Smart shippers are finding ways to leverage these innovations to increase profits and strengthen relationships across the supply chain.

So, Don’t you think your supply chain needs to adopt the new technology? The blockchain technology? Talk to us today!

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