5 benefits of blockchain in supply chain management

Here are the top five benefits of blockchain in supply chain management

Supply chain logistics has become much more challenging as a result of the exponentially higher demands of modern consumers. Customers now demand what they want, how they want it, and when they want it thanks to the Amazon effect. Enter blockchain, one of the most hyped technologies today. Blockchain for supply chain logistics can provide reliable and secure digital information sharing across a large network.

Here are five ways blockchain in logistics can help manufacturers, distributors, retailers and suppliers meet consumer demand for more varied product deliveries that arrive faster and more conveniently.

1. Validate provenance along the supply chain

As they move through the supply chain, high-value goods and assets must be scrutinized, according to Greg Carter, CTO of Scottsdale, Arizona-based GlobalTranz, a transportation and logistics services provider. When handling valuable items, blockchain provides assurance that the data has not been tampered with or destroyed.

2. Create transparency

Transparency is the main benefit of implementing blockchain in supply chain logistics, according to Andy Stinnes, a venture partner with San Francisco’s Cloud Apps Capital Partners. One area of ​​the supply chain where the complexity of managing and coordinating across a range of partners is particularly noticeable is transport logistics. According to Stinnes, the simplicity of information exchange is the value proposition for blockchain in supply chain logistics.

3. Offer quality assurance

According to Carter, the use of blockchain in supply chain logistics enables all parties involved in a transaction to access crucial information needed to confirm important milestones.

4. Provide cost savings

According to Stinnes, using blockchain will also enable companies to save money. With the use of blockchain, some manual processes currently required for transport logistics procedures can be eliminated, improving efficiency and reducing the margin for error. Because shipments will reach their destinations faster, Stinnes said, that results in cost savings.

5. Boost Track and Trace

Companies can use blockchain to follow a product from its origin and determine if it is made of the right components and if the manufacturer that sent it actually produced it. This prevents fraud by ensuring that fake products are not shipped. Additionally, in the case of theft, blockchain allows companies to determine if the chain of custody has been broken at any stage of transportation.