Modern Supply Chain with Blockchain Technology
Supply chain management comprises integrated planning and implementation of processes, including material flow, financial capital flow, and information flow. Proper supply chain management can lead to benefits such as higher sales and revenue, lower fraud and overhead costs, and improvised quality. When a company grows, the interconnectivity of various elements in the supply chain is becoming increasingly inefficient.
Blockchain, in particular, presents one of the most promising possible solutions to solve the current problems faced by manufacturers and sellers. It helps in the instantaneous transfer of risk: every company that handles the product absorbs risk along the supply chain. Blockchain has become an increasingly valuable tool in many industries due to the inherent advantages offered by the LED technology. On one hand, blockchain offers a simpler, more direct mechanism for transaction recording with smart contracts.
According to a survey conducted by the Digital Supply Chain Institute (DSCI) and APQC, more than a third of people cited reducing costs as the main benefit of blockchain’s supply chain management applications. The removal of intermediaries in the supply chain saves the risks of fraud, product duplication, and also helps save money.
The blockchain is used in the supply chain to address many challenges, including complicated product registration and tracking. If a product is missing or does not arrive, or some other inconsistency occurs, it is found instantly, and insurance is paid resulting in a zero delay. SAP has launched a Farm-to-Consumer blockchain initiative to improve material provenance and traceability with ten customers. Large enterprises have many components in their supply chains. Therefore, it is almost impossible to track every record, even for multinational companies.
The lack of transparency leads to costs and customer relationship problems that ultimately dilute the name of the brand. Tracking records and provenance can be easily accessed by embedded sensors and RFID tags in a blockchain based supply chain management. Integrating cloud computing blockchain technology will help companies maintain their competitive advantage by protecting valuable business intelligence. Hopefully, we can see more supply chain implemented with blockchain to improve business management and gain trust in customers.