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A supply chain management involves the planning and accomplishment of all the processes included in getting the complete products. It is a chain of individual entities, businesses, organizations, technologies as well as resources that are present in the manufacturing of a product. It is necessary to properly plan and implement a supply chain as it involves benefits like improved sales and revenues, decreased frauds and overhead cost, expedition in production and delivery, and quality improvement.
With the growth in businesses, the supply chain tends to become superfluous given that the interconnectivity among the combined elements of the supply chain might not match the efficiency level. Such inefficiency may act as a major threat to business operations and may lead to a failure. Artificial intelligence and Machine learning are employed in the supply chain to overcome such inefficiencies that are precarious to businesses. Blockchain Technology can be used to resolve the challenges of the supply chain industry such as complicated record keeping and tracking of products. With blockchain technology, a better-automated choice to manage the centralized databases is made possible.
Due to a very large amount of transactions and multiple elements in the supply chain, companies lose track of transactions. Blockchain-based supply chain management provides tracking and record keeping which makes the information-fetching simple with embedded sensors and RFID tags. The product history can be tracked right from the origin to the present state any time. In addition, such exactness in provenance tracking can be used to detect and prevent frauds.
In blockchain, extra cost can be reduced while securing the transactions. Building trust in the system is necessary for smooth operations where there are multiple participants in the complex supply chain. The regulatory authorities should be able to rely on the data and records.
The blockchain technology enables data to be interoperable which manages the data sharing process among the manufacturers, retailers, vendors, and contractors. The transparency in data sharing reduces delays and conflicts. It also prevents goods from getting stuck in the supply chain cycle because each product can be tracked in real-time which make the chances of misplacements rare. It offers scalability with which large databases can be accessed from multiple locations around the world.
Blockchain has extensive use in supply chain management and is expected to develop at a faster pace in the future. To obtain the advantages of blockchain in the supply chain industry, corporates should start integrating its capabilities to their existing systems today.