Blockchain technology adoption has continued to gain traction in several industries, especially in financial services. Now, it has evoked the interest of key supply chain players looking to achieve efficiency and productivity while strengthening security and reducing costs. If you are a supply chain manager who is uncertain of blockchain’s capabilities and wants to determine if blockchain supply chain management solutions are feasible or not, this article may give you the answers you need.
Multiple parties’ involvement in the supply chain management
When there are several external partners involved in your supply chain, its processes become more complex and time-consuming. Moreover, it takes days to process payments and trace products or parts back to their origin due to intricate, globalized supply chains. Currently, supply chains also have a scarcity of solutions that can trace exact sources of materials or confirm whether processes have been followed ethically.
If your business supply chain comprises of several parties working across different geographies, blockchain implementation can bring significant benefits to it. It can enable you to store, manage, and track all operations and transactions through a single, distributed, automatically updated ledger.
If you are not facing such an issue, read on how blockchain solutions in supply chain management can still make a difference.
Blockchain smart contract solutions offer end-to-end traceability and tracking of products, from the provenance to the customer-shelf.
Mistrust between involved parties
Often, supply chain management lacks trust among involved parties, which makes even simplified processes stressful and complicated. It compromises a supply chain’s integrity when one party does not trust another party of recording data accurately.
Ultimately, blockchain is about solving trust issues through transparency.
It provides end-to-end transparency through its distributed ledger, which enables all stakeholders in the chain to view and confirm others’ actions. That means nobody can change the data verified across the network without achieving consensus. It makes data tempering or hacking almost impossible.
If your supply chain depends on intermediaries to establish trust, blockchain can be beneficial as it eliminates their need with smart contract solutions.