The blockchain technology offers a technology-driven facelift to the industries and upgrades productivity, transparency, and reduces wasted time and manual paperwork. The transparency of a distributed ledger associated with cryptographic security of data chain makes the technology applicable in supply chain management.
Businesses demand faster returns on the investment and a shorter distance between investor and investment. Blockchain offers efficient push to the supply chain towards globalization.
Organizations face difficulties in dealing with massive amounts of data coming from suppliers and customers. Supply chain brings together different types of processes and departments. The human workforce is not enough to handle the processes inundated by numbers of data quickly and error-free in this industry.
Following are some of the applications of blockchain that can leverage the supply chain management:
Transparency: Blockchain makes the transaction history of the supply chain more transparent. As its a type of distributed ledger, all network participants are able to share the same documentation and the shared version is updated only when everyone agrees on it. Alteration of records and the collusion of the entire network are required to change a single transaction record. It makes data more accurate, consistent and transparent than paper-based processes.
Data protection: The technology protects collected data, stored and processes at the node level by verifying data cryptographically. It tamper-proofs data in a distributed hyperledger and validates the integrity of transactions before accepting them.
Traceability: Companies, who work with a complex supply chain, face difficulties to trace an item back to its origin. But if blockchain records the exchanges of goods, the companies can have audit trails that display the journey of the assets. It helps to verify the authenticity of assets and prevent fraud.
Reduces cost and increases revenue: Blockchain eliminates the need of the middleman in the supply chain and processes that slow efficiency and low profits. It paves for innovative business strategies by breaking down administrative and collaborative barriers.