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Blockchain Is Best For The Supply Chain: Here’s Why

Image Courtesy: Unsplash
Written by Melwin Joy

Today’s supply chain networks link raw material producers, manufacturers, suppliers, logistics companies, retailers, and customers with blockchain technology. The network works in tandem with each other making the delivery process smooth. It tracks, trace, monitor, and modify the supply chain as necessary while securing the product and demand.

Blockchain technology provides end-to-end visibility and security to the users. Let’s see why it is best for supply chain companies.

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How Blockchain Benefits Supply Chain

Increased Transparency

Traditional supply chain networks can be limited in terms of visibility. Transactions may require time to get to the system where the concerned parties can see and then the verification process has to be completed. The distributed ledger technology of blockchain helps the verification processes be authentic as and when it happens, providing greater transparency.

Resilient Network

Traditional processes tend to have a windfall if one system crashes the rest follows too. Blockchain-enabled supply chain solutions use smart contracts which trigger when the pre-defined conditions are met. Processes are much easier with this technology, while it gives real-time updates and notifications to take action if anything goes wrong.

Streamlined Onboarding Process

Onboarding processes take time – normally. With blockchain, multiple vendors can complete the process easily at the same time with valid data and verifications. This help the company to build trust with clients and forget about the logistics performance.

How Blockchain Drives Value In The Supply Chain

Develop – Helps to gain access to source material data, reports better R&D material choices, and enables closed-loop designs.

Plan – Rise in opportunities for co-planning and forecast information sharing between suppliers and customers. 

Source – Replaces paperwork with smart contracts while reducing sourcing and administrative costs.

Make – Outsourced manufacturing status is better visible while being compliant with the standards and regulations.

Deliver – Concerned parties know the product delivery status in real time.

Return – Learn about the return details of products that are returned, informing the concerned merchants.

How Blockchain Is Applied In The Supply Chain Network

Supplier – Ensures ethical sourcing with valid documentation and product safety.

Manufacturer – Helps to reduce impacts and key issues with complete visibility in the processes from procurement to production.

Regulator – Implementation of smart contracts reduces the need for regulatory intermediaries, ensuring quality control throughout the supply chain.

Logistics – Automates the delivery process and keeps updating in real-time. Visible by all from raw material providers to the customer on a permission basis.

Wholesaler – Able to manage inventory data and stock availability in real time. Stocks can be automatically filled once it’s lower than a certain threshold.

Retailer – Gains certainty of the products being received with related authenticity certificates and relevant data.

Consumer – The supply chain insights help the consumer to make informed decisions regarding the products on sale with proof of certifications.

A Word On Blockchain

Blockchain technology in the supply chain has been gaining popularity in recent years. With the safety of smart contracts and permission-based access, data stored in the blockchain is very safe. Industry data is important in the supply chain network along with the transaction details. Blockchain technology can secure it for you.