Blockchain—what seemed like a buzzword before is now a harbinger of innovation and change in the supply chain industry. Today, most supply chains amalgamating business practices that cover flow of products and services among consumers, suppliers and producers are scurrying to deploy blockchain to enhance security and efficiency. But before a company adopts blockchain technology, it must first decide on the type of blockchain to build. The blockchains that reside in an internal domain uses a consensus verification protocol to establish trust in each block. However, there is no central database or central governance in these blockchains. Traceability of unknown parties in the supply chain is one of blockchain’s features that assist in smooth movement of goods through multiple distribution points. After assessing the cost-benefits of investing in this method, the supply chain management finds it cost-effective collecting and validating data from lower levels of the supply chain.

The global supply chain, loaded with unresolved issues of mistimed deliveries and loss of product, is undoubtedly complex. Poorly managed inventory and unsophisticated payment practices have contributed to the hundreds of billion dollars of lost revenue each year. Blockchain has the potential to propel the global supply chain management into an era of easy reliability and profitability. After integrating blockchain technology into the supply lines, automated smart contracts, real-time GPS tracking and built-in inventory management and delivery mechanisms are no longer just visions. With these features, blockchain technology can greatly improve the supply chain efficiency and administer instant payment to the relevant parties across the globe. Greater efficiency and transparency delivered by the blockchain will fortify the supply chain at every step, guaranteeing higher quality products, greater customer satisfaction, and a higher profit margin.

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