Supervising the supply chain is an enormously complex task as the stakeholders must learn to maintain the paper-based trails.
FREMONT, CA : The supply chain includes many stages, several geographical locations, numerous stakeholders and entities, and a large number of payments and invoices, relying on the type of products. Blockchain provides an opportunity to modify the supply chain and the logistics industry, keeping in mind the lack of visibility within the supply chain. Blockchain offers high security, and if any block is altered, it changes the constituents of the entire blocks on the network, making it a troublesome task for the hackers to damage the blockchain ledger. Therefore, blockchain can improve productivity, as well as the transparency of supply chains and affect everything, starting from the storehouse to the delivery and payment.
With the help of blockchain, the alterations in time delays, human mistakes, and additional costs could also be trimmed down. The execution of blockchain in the supply chain can allow businesses to gain insights on what they are dealing with, the product source, manufacturing, and estimation of the payment as well. There are a vast number of benefits attached to the implementation of blockchain in the supply chain.
• Better Transparency
The enduring ledger of blockchain does not allow any tampering with the information and helps the suppliers and retailers to perceive the product from their point of view. Furthermore, improved visibility also shows that the manufacturers can finally authenticate the inventory to fight against the counterfeit trade.
• Cost Reduction
Blockchain offers abilities such as real-time tracking of a product in the supply chain, without any mediators involved in it, which ultimately cuts down the cost of the moving items. Since there are no intermediaries involved, it prevents extra expenses, counterfeits, or frauds and reduces the possibility of fraud products. The parties of the supply chain can carry out their payments via crypto payments rather than depending on financial intermediaries such as banks.
• Tracking the Origin
Multinational companies and large organizations never possess backstories about their products in the supply chain because of the lack of visibility. It has high chances to lead to high costs and customer relations issues, harming the reputation of the brand. Implementing a blockchain solution can help the business in data sharing, record keeping, and provenance tracking by making it more straightforward and effective. The transactions that are stored in the blockchain ledger cannot be altered or wiped out. It also allows the consumers and stakeholders to trace the history of a product, starting from its origin to the purchase.
See Also :- Top Supply Chain Solution Companies