Is Blockchain Technology Modernizing the Supply Chain Network?By CIOAdvisor Apac | Friday, November 30, 2018
The blockchain is a distributed database which keeps a record of all data and events on a digital platform. The users may access this data, but they can’t manipulate or delete it. The original information remains as it is, and there is a constant series of transactions which is available and accessible for its users.
As we all know, blockchain is a distributed ledger system; therefore its transactions are not controlled by any central authority. It operates on a record-keeping basis and ensures ease and security for businesses to carry out various deals over the internet. All forms of companies are integrating the blockchain technology due to its offerings such as tracking, verification, and recording.
Blockchain’s impact on the supply chain
The supply chain network involves the data collection of people and goods that are a part of the trading process. It also consists of the record of the movement of product form different stages starting from manufacturer, through various networks and then finally to the consumer. The long-drawn process which includes different people involved in the supply chain network makes it a bit complicated. It becomes difficult to trace illegal activities when the supply chain is complicated. Therefore, blockchain has the potential to bring great transformation in the supply chain.
How Blockchains are Enhancing supply chain
The exchange of cryptocurrency platforms have proved how efficient blockchain can be and therefore this can be implemented in the supply chain market as well. The blockchain technology enables tracking all forms of transactions securely and transparently. Any product which is up for sale, its purchase can be recorded as it goes through the critical channel. These series are permanent and can stand for the product’s stable history.
This technology is helping in reducing additional expense, possible human errors and also reduces the time lag which is likely to occur in a conventional transaction; there are organizations which have started utilizing this innovation. It is impossible to manipulate any data that is entered into the blockchain system thereby ensuring transparency in the supply chain. Hence, all the users have access to the same sample of data thereby lessening the chances of fraudulent activities. Companies can track the movement of these products and communicate better with consumers regarding the increase or decrease in the production of commodities.
Integrating blockchain into the supply chain
Organizations must be aware regarding the possible risk factors. This is essential because all the weak points will be considered and plans could be formed to tackle them whenever new software or programs are under implementation. The most likely set of ideas will be able to spot the weak points. For an organization to succeed and yield profits, they must achieve success with implementing blockchain technology and must also ensure that all its contacts such as retailers, suppliers, and others participate in the blockchain movement. This collaboration is a must for proper transparency.
Blockchain technology in the supply chain network has become a trending topic and is revolutionizing industries towards advancement and betterment. As a secured platform, the possibilities and offerings the blockchain innovation possesses in the supply chain are limitless.