Blockchain Technology to Transform the Supply Chain Management
Before we start discussing how Blockchain Technology affects Supply Chain Management, you should be well aware of both the terms, individually.In addition to that, another critical question here asks: Why is there a need for transformation in traditional Supply Chain Management?
A Blockchain is a growing linked list integrated through cryptography. In other words, a blockchain is a growing chain of blocks, resistant to modification by design, and each block contains a cryptographic address of the previous block, transaction data, and timestamp.
Supply Chain Management is the process of managing goods and services from the point of source to the point of consumption. This defination includes the movement and storage of raw materials, of data related to work-in-process, and of the finished products.
With the massively growing and throbbing market of Commerce, the business has expanded and turned into multi-billion dollar empires. Coupled with the intricate work process, the massive storage and movement of raw materials, management of human resources, ware-houses, and in fact, the overall management is a huge task.
This globalized market calls for modification in Supply Chain Management, helping us ease our way into a more subtle, efficient, and productive methodology.
The Blockchain Technology thrives on the idea of transparency. Hence, the concept of fool-proof and smart work-process and precise transactions can do wonders for the traditional Supply Chain Management.
Moreover, records on a blockchain cannot be erased or modified, which is ideal for a transparent supply chain.
Blockchain ensures a smooth, integrated, and reliable supply chain, which is the dire need of the traditional Supply Chain Management. In addition to the reliability, there can be no dispute regarding the transactions on the Blockchain because of consensus. While transparency can be a risk in case of shady deals in Supply Chain, it’s also the most prominent strength because all entities on the chain have the same version of Ledger.
Furthermore, more brands are shipping the applications of Blockchain in Supply Chain Management as they realize the potential and demand for Blockchain-enabled solutions.
Since Blockchain allows the transfer of funds from anywhere in the world without having to use the means of a traditional bank, it provides ease for a globalized supply chain. Australian Vehicle manufacturers – Tomcar, pays its supplier by similar means.
Some more examples of brands that happen to endorse and implement this transformation are Walmart, Unilever, Nestle, Dole, Tyson, and De Beers.