Reluctant to blockchain solution for the Supply Chain Management can give you FOMO
The modern supply chain ecosystem requires a new and hardcore solution to overcome its challenges. While the yesteryear’s supply chain was focused on availability, movement, and cost, now it is more about managing data, services and transporting goods in lesser time to their consumers.
To create a greater edge over competitors, you can use blockchain for solving supply chain problems. This technology provides supply chain capabilities that were not possible in the past.
“Blockchain is a key technology in the digital supply chain”- ~EverythingSupplyChain.com
In this article, we take a look at the challenges of supply chain traceability and how blockchain can bring transparency to the process.
As supply chain management seeks huge attention and manpower to run the process, so, it is obvious that it requires huge planning, time and data management for a fruitful consignment. Though the modern supply chain has become sophisticated still there are risks associated with its interlinked nature.
Challenges faced by supply chain industry
- Rapidly changing business environment
- Several layers of stakeholders, including suppliers, distributors, and customers increase the supply chain risk
- Ineffective supply chain risk management
- Lack of traceability
- Use of outdated technologies
So, basically, you need a solution that supports the tagging and tracing of products from development through their distribution. Using blockchain technology will help you to watch your products moving from a manufacturing zone to their end users while letting you trace unaccredited activities in that process.
From a retail perspective, for your end users, the tagging lets them scan a product as they meet it at the point of sale and receive that exact product’s information directly from the manufacturer. This makes it easy to identify counterfeit items.
Benefits of Blockchain integration into supply chain management
Capture product detail
Smart contract stored on the supply chain captures data about products.
|Smart contracts in supply chain management fasten the flow, offering improved security and accuracy. With automated verification and execution, this digital contract reduces the complexity of the process storing real-time data of each step. Its end-to-end transparency efficiently enhances the tracking thereby reducing chances of negligence and fraud.|
All the data stored can be verified by all stakeholders
Gather real-time updates of the cargo location to optimize the movement of goods
Understand the origin of products
Companies can record the sourcing and transfer of raw materials & products to ensure quality and standards are met
Optimize administration work
Documents related to contracts, shipping, digital tags and barcodes all are recorded on the blockchain for further distribution of goods and improved management.
How blockchain supports efficient supply chain management (SCM)?
- Being a manufacturer, you can use blockchain for reporting to make distribution faster and easier. Your supply chain managers can optimize and streamline manufacturing distribution.
- Blockchain increase traceability and transparency of SCM to ensure corporate standards are met. Today, an overseas shipment of products require verification by more than 20 entities. These verifications mainly involve paper works. If a supporting paper is missing, the cargo (shipment process) will standstill. This slows down the entire process.
Blockchain can eliminate this problem and excess cost on shipment. The open, real-time access to data on blockchain let you verify, report and optimize the sourcing, transfer, manufacture, and distribution of goods wherever they are.
- Blockchain raises high hopes for SCM even when goods are lost or delayed. You can verify the history and progress to understand the potential issues which result in greater efficiencies, reduced costs and easy auditing of goods.
Blockchain solution is projected to have far-reaching impacts on many industries, including SCM. From product creation to logistic, the blockchain solution can efficiently boost the whole process.
Using this new technology doesn’t require revamping an entire IT infrastructure. It requires some careful software coding to help the change works seamlessly with your existing process. Many companies have successfully implemented blockchain technology that supports their business and improves the overall supply chain.