Ever wondered, Blockchain the technology behind the making of digital assets and payment system Bitcoin has the potential to change the flow of Supply Chain Management.
Starting from the conduction of payments and audits to efficiently tracking inventory and assets, Blockchain is improving the flow of whole supply chain management.
Before getting into the topic, Let’s first know about Blockchain in brief.
Blockchain is a distributed database holding records of thousands of digital data and events in a way that no one can disturb it. Many users can access, inspect and read that but they can’t change or delete it.
The original information stays set leaving a permanent and public information trail for the users.
In simple, Blockchain is a record-keeping mechanism making the transfer of data easier and safer.
Bitcoin is one of the most popular applications by Blockchain technology. Bitcoin is a digital currency system that has boomed the business of tech merchants.
This was initially intended for financial transactions, but now many business owners are creating interest in this blockchain ledger.
There are many advantages of Bitcoin such as recording data, Tracking data and verifying trades. This attracts the business owners to implement Bitcoin in their business.
How Blockchain will be a gamechanger in supply chain management?
We all know Blockchain allows secure and transparent transactions, Just imagine what it could do when used in the supply chain?
Whenever a product changes hands, the transaction is documented with creating a permanent history of the product, starting from manufacturing to sale. This helps in dramatical reduction of time delays, additional cost requirements and also reduces the chances of human error.
Many of the supply chains have already implemented this technology in their business flow. A recent survey says that within a few years Blockchain will completely take over the supply chain management systems.
Blockchain Affecting Supply Chain Management:-
- Recording the quantity and transfer of assets while they move between supply chain nodes.
- Assigning or verifying the certification of certain products.
- Linking the physical goods with the serial numbers and bar codes and also with digital tags.
- Tracking purchase orders, change in orders, receipts and also with shipment notifications too.
- Sharing information about the manufacturing process, delivery, and maintenance of the products with suppliers and vendors too.
Some Benefits of Blockchain in supply management for suppliers:-
Virtually any number of participants can access any touchpoint at any time.
More Enhanced Transparency:-
Documenting product journey across the whole supply chain. This helps in revealing the actual origin of the product and the number of hand changes.
Due to the use of ledger technology the security concerns in the supply chain are reduced. The trust gap between the suppliers and the manufacturers is reduced.
Introduction of Smart Shippers:-
Smart shippers are finding ways to leverage the innovations and to increase the profit margins for both manufacturers and suppliers.
Blockchain has already introduced it’s potential to do changes in many industries. The supply chain management is one of them.
Many companies are in a quest to filter out the way their supply chain will improve and what Blockchain is having for its supply chain management system.
Therefore the use of Blockchain in Supply Chain Management will work as a game-changer by eliminating the risks and inefficiency which are there in their chain.