New technologies are providing the potential to bring forth revolution across the supply chain space. But the latest advancement that can bring more transparency to the supply chain management is blockchain. The distributed ledger with encryption security provides the perfect platform for executives in the supply chain to distribute source material, which cannot be tampered externally.
Blockchain can be used by the customer and the supplier alike to expand on forecast sharing and facilitate co-planning to eliminate inventory risk. Participants can create various records from orders placed, container deployments, pricing, date, and other essential data to increase traceability and transparency. This improves credibility and trust on data of the customers. Blockchain’s documentation chain will provide a credible source to increase visibility and compliance across the outsourced contract manufacturing within the supply chain space.
Blockchain will effectively reduce expenditure by reducing administrative cost as the suppliers would no longer need to employ a large number of administrative workers. This will in turn considerably reduce mundane paperwork. The technology is set to increase efficiency and provide end-customers a clear map of each of the step with the supply chain journey.
Moreover, the encryption process provides a data security and anyone without the access to a particular set of data within the blockchain cannot chain certain data or create any breaches. Suppliers and regulators can create a unique code key to be shared with the end-customer, this can be done to deny access to certain third-party vendors from misusing the information. Blockchain provides a great opportunity to track supplies while maintaining privacy.