Blockchain adds new dimension to the supply chain
Supply chains can benefit from new technology. Using blockchain in the supply chain has the potential to improve supply chain transparency and traceability as well as reduce administrative costs.
FREMONT, CA: Information has become the most valuable resource for companies. It is stored in different forms and used for several purposes. Businesses depend on information for every step and decision. Blockchain enables businesses to operate efficiently by delivering information through a shared and immutable ledger. The supply chain uses blockchain technology to achieve transparency in monitoring processes and reduce operating expenses.
Advances in surveillance: There is a lot of information that can be recorded in a blockchain supply chain, such as price, date, location, quality, certification and other relevant information that can be used to improve the supply chain. A blockchain can provide this information to increase the traceability of the supply chain of materials, reduce losses, improve visibility and compliance in relation to outsourced contract manufacturing, and help organizations increase their reputation as leaders in responsible manufacturing by facilitating these activities.
Recent developments: A growing number of large companies and startups are exploring the use of blockchain technology outside of the financial industry as the technology gains traction. A growing number of organizations are exploring blockchain innovations to meet various needs. In addition to improving transparency, reducing risk, and improving the efficiency and overall governance of the supply chain, blockchain-powered innovations in the supply chain have enormous potential to deliver tremendous business value.
Value creation in the supply chain: The application of blockchain technology in the supply chain can provide increased transparency and reductions in costs and risks at every point in the process. In addition, blockchain technology can optimize the traceability of materials, reduce losses on the gray market and reduce administrative expenses. It also builds creditworthiness, reputation and public relations.
Digital assets allow organizations to track assets from production to delivery and use, enabling decentralized, immutable records. A distributed ledger with all relevant information can speed up manual compliance or credit check processes that take weeks. High-value commodities such as diamonds and pharmaceutical drugs can benefit from blockchain-powered supply chain transparency.
Blockchain technology is gaining momentum in the business landscape, and companies should keep an eye on the industry players who have experimented with the technology. In a supply chain, blockchain has the advantage of the network effect. When a critical mass is reached, it becomes easier for others to adopt the technology.
