Advanced technologies are presenting promising opportunities for enhancement across the supply chain.
FREMONT, CA: Blockchain technology and supply chain management systems were developed for each other in several ways. Many of the flaws of the current supply chains can be seamlessly relieved by using blockchain technology. Supply chain management is one of the primary sectors that blockchain can disrupt and changes for the better. With blockchain technology properties of decentralization, transparency, and immutability, it is the tool to save the supply chain management sector. Most importantly, blockchain offers consensus.
Blockchain enhances operational efficiency by mapping and visualizing enterprise supply chains. An evolving number of consumers demand sourcing data about the products they buy. Blockchain assists organizations in understanding their supply chain and engage consumers with real, verifiable, and immutable data. Blockchain develops trust by capturing vital data points, such as certifications and claims, and then publicly offers open access to this data. Once registered on the blockchain, its authenticity can be verified by a third party. The data can be updated and validated in real-time. Plus, the strong security from its innate cryptography will avoid unnecessary audits, saving copious amounts of time and money.
Blockchain can fuel increased supply chain transparency to assist mitigate fraud for high-value goods like diamonds and pharmaceutical drugs. Blockchain could aid companies to understand how ingredients are passed through each subcontractor and lessen profit losses from gray market trading, and scale confidence in end-market users by mitigating or eliminating counterfeit effects products.
Businesses can maintain better control over outsourced contract manufacturing. Blockchain offers all parties within a respective supply chain access to the same data, potentially mitigating communication or transfer data mistakes. Less time can be spent validating information, and more can be spent on offering goods and services—enhancing quality, reducing cost, or both. Finally, Blockchain can optimize administrative processes and reduce costs by allowing an effective audit of supply chain data. Processes involving manual checks for compliance or credit purposes that may take weeks can be boosted through a distributed ledger of all needed information.