In today’s fast-paced world, the supply chain system has become highly necessary, as almost all the essential services depend on stable, reliable supply chain management systems. The excess demand for all these services has made the supply chain process more entangled and extremely complicated. This may cause certain process delays, such as the initiation of the payment process between the manufacturer and supplier or between the customer and the vendor. Most of the contracts are handled by lawyers and the bankers, which mean extra costs for the third party involved
The products and the spare parts are often hard to track, making it harder to eliminate defective products. Depending on the type of product, a standard supply chain delivery takes a lot of time; this is because the supply chain goes through several stages, covers multiple geographical locations, involves several third-party entities, and covers months of time. Due to the complexity of the age-old supply chain process, there is an inherent belief that Blockchains will transform the future of the supply chain and the logistics industry.
Why opt for Blockchain?
The blockchain is an extended distributed decentralized ledger that records all digital data and a list of scheduled events that can’t be altered or tampered. Blockchain’s architecture is built in such a way that many users can access it. Specific users with access can add, inspect, change, or altogether remove the data. In a blockchain system, every transaction is recorded on a block and multiple copies of the ledger are distributed over many computers, which are highly transparent. One of the unique aspects of this technology is that all the blocks are linked and connected to one another. There is no single central authority in control of the framework, making it extremely efficient and scalable. In fact, Blockchain is an excellent record keeping mechanism, making it possible for organizations to conduct their businesses in a secure and easier way.
Impact of Blockchain on the supply chain industry
Implementing Blockchain technology in the Supply chain development services will allow industries to keep a record of their transactions more securely and transparently. The chain of command is essential for many aspects, but most importantly, it is highly necessary for supply chain management.
In a typical Blockchain Supply chain management system, after every sale, the product changes hands and the transactions are easily documented, creating a permanent history of the product. The product history includes details about its manufacturing date, any additional delays, and removal of unnecessary added costs.
The concept of reliability and integrity are introduced in the supply chain solution through Blockchain technology. Blockchain will boost the transparency and trust by allowing users to track their shipment at any given point in time. Since the Blockchain framework is an immutable ledger, it can change the possession and the ownership of goods as they move from the point of production to the point of retail. These details could be entered into the ledger simultaneously and permanently.
Using Blockchain technology, supply chain professionals can gather and track data in a variety of ways. For instance, an entry in the Blockchain database could trigger other tasks, such as the schedule of arrival of the next set of goods. Blockchain technology can improve the following functions in a supply chain:
Effective tracking and recording
Tracking and recording of assets have never been easier. Details about the purchase order, shipment notifications, quantity purchased, and even the container details can be tracked.Seamless sharing of data
Specific details about the manufacturing and production process, assembly, and delivery details can be shared between the suppliers and the vendors.Precise assignment and linking of physical goods
The physical products are linked with their barcodes and serial numbers with relative ease through this process. At the same time, verification about the condition of physical products, that is whether it is in good condition or tampered with, can be assessed through Blockchain technology.
Conclusion
The evolution of Blockchain technology has created a ripple effect on all industries. Many industries are adapting to this evolving technology. Despite being a new technological venture, it can transform supply chains, their supportive ecosystems, and industries. In a nutshell, Blockchain has the following benefits:
- Eliminates the risk of fraudulent activities and errors
- Reduces consecutive delays of paperwork
- Identifies and rectifies issues faster
- Minimal shipping and courier costs
- Improved and more structured inventory management
Increasingly, many organizations, especially from the banking industry, have integrated their processes with banks. A Complete transformation of supply chain management will not happen overnight, but will gradually supplement small portions of their operations by using the Blockchain framework. The future of supply chain industry is bright because of the opportunities that this technology has to offer.