Building an Efficient, Transparent Supply Chain Ecosystem With Blockchain

Share

Want to trace the supply chain of that delectable seafood on your dinner table? Or, are you eager to learn about the place from where your computer or mobile device is supplied in the markets? Every store selling any kind of product is part of the huge supply chain and almost all sectors have their own, unique supply chain model for swift execution of the complex processes involved in providing the best quality finished products in the market. The supply chain sector is rife with challenges but the revolutionary blockchain technology can help transform many of the roadblocks prevalent in the system. In this blog piece, we would attempt to look at some of the popular use cases of blockchain in supply chain operations to understand how the integration of this ground-breaking technology can create efficiencies in the supply chain sector all over the world!

Overview of blockchain in supply chain operations

The supply chain is quite a difficult domain to manage for its extraordinarily complex nature. Most assume that planning and setting up supply chain operations does not require too much thought or planning. With just a few simple steps, one could implement and manage the complex supply chain operations. Nonetheless, all the aspects related to supply chain management – be it the planning, implementation, and also maintenance require effort and can become quite a challenging task.

Enterprises need to take into account several factors to ensure smooth execution of the supply chain to derive a complete range of benefits, including enhanced value, improved sales, and better revenues. Blockchain technology also ensures streamlining of supply chain operations, removes the threat posed by frauds as well as mitigates the overhead costs.

What is blockchain and how does it work in supply chain management?

A blockchain is a distributed, digital ledger that records all transactions in a series of blocks linked together consecutively in a chain. The ledger storing information of all transactions is spread across multiple nodes and each node is updated every single time a transaction or an alteration occurs. Hence, the data stored on this digital ledger is secure, immutable, and tamper-proof. Immutability is one of the most important traits that favor blockchain’s use cases in supply chain management and the benefits for this vital industry. All transactions within the digital ledger in the supply chain management can be made, confirmed, and also verified in real-time.

Integration of blockchain in the supply chain allows businesses to build a reliable, trustworthy, secure, and streamlined ecosystem even in instances where the interaction occurs with parties having no relationship or trust among each other. The technology eliminates the need for central control as in the case of supply chain operations which still follow the traditional centralized technology. The removal of third parties also lea