Is it possible for blockchain to become a viable supply chain?
Blockchain can provide an independent system for managing multi-layered supply chains in real time. The platform has features like high compatibility with all devices, a huge variety of trading tools and many more. To get a good idea about bitcoin trading visit this website.
A blockchain-based solution can revolutionize supply chain management with its immutable audit history and ability to build trust in business relationships. Blockchain is a proven solution that uses state-of-the-art technology to bring transparency and accountability back to global supply chains by transacting on blockchain networks. Information is recorded in a public ledger, so it cannot be manipulated or changed without the consent of all parties participating in the transaction.
And the ability to track a product from start to retail ensures that all parties are focused on the same goal of safety and quality. Despite its much-anticipated capabilities, blockchain still faces challenges in monitoring and managing supply chains. The challenges include the following:
1) Digital vs Recycled Goods:
Most supply chain stakeholders in a wide range of industries and consumers prefer goods they can touch and feel over taste and smell. In comparison, blockchain solutions rely on hardware that allows data storage, but does not have visual features or smells associated with goods. As a result, blockchain can help companies identify or monitor products made from recycled materials.
2) Transition from traditional to new supply chain:
Companies operating within a traditional supply chain must move away from standard business practices of purchasing new materials and operating a closed supply chain. Using blockchain, companies can move towards transparency by tracking recycled, used or refurbished products at the point of sale.
3) Growth in mobile commerce:
Compared to e-commerce companies, mobile commerce (or m-commerce) faces higher operational costs, such as additional software, hardware and manuals for product tracking. Additionally, due to the complexity of m-commerce companies adopting blockchain systems for their supply chains, blockchain solutions will take longer to enter this field than e-commerce.
4) Travel and tourism:
Supply chains in this industry are often challenged because it requires many transactions to travel around different parts of the world. An example is looking for a travel vest supplier in the US and then finding a product of the same quality and design in several countries, including Europe, Africa and South America. With blockchain, companies can track the entire journey from first order to delivery without significant deviations.
5) Craftsmen and small businesses:
Traditionally, small producers and artisans have struggled to find suitable or preferred materials due to their loose supply chain management. With blockchain, artisans can track and record their products, while earning additional revenue by licensing their content to several giant companies.
6) Collaboration: Collaboration is another area where blockchain solutions will find success in global supply chains. This collaboration requires stakeholders to have access to all areas of production, such as materials and parts. An excellent example is BMW, which uses blockchain technology with high-quality steel suppliers to produce larger quantities of lighter metals.
With the above challenges or problems, there are also many benefits that blockchain can bring to the supply chains. While there is no single solution to managing supply chain processes, blockchain technology provides a powerful tool that can help solve problems while providing added value to stakeholders inside and outside the supply chain industry.
Blockchain-based solutions can monitor and manage supply chains in real time. It provides easy access to recent product transactions, allowing manufacturers and retailers to keep track of incoming products or unused inventory and outgoing products or waste material that everyone can recycle.
Because blockchain transactions are immutable and can never be changed once added to the public ledger, they provide an independent system that reduces the loss of trust between businesses. Using blockchain technology to improve a supply chain can have many positive effects. It will allow companies to provide transparency and accountability, which is often difficult to achieve.
People in the following areas may find increased openness and trust
For example, blockchain technology provides a way for stakeholders in a supply chain to track the production of products from their point of origin through the manufacturing process and payment to the end customer. The result is an open-source public ledger that provides an independent system that can continuously monitor each step of the process.
Can blockchain become a viable supply chain?
There are several challenges, which, although some of them are specific to each industry, the vast majority of challenges apply to any industry that uses a large volume of product transactions. For example, in the food and beverage industry, thousands of products must be tracked from the moment of production to delivery and use.
Tracking this level of products is time consuming and costly for existing supply chain companies. By using blockchain technology on sites like Ceros, manufacturers and retailers can track every transaction along the product path as it moves from point A to point B. In addition to monitoring every step along a product’s path, blockchain technology offers another important benefit: immutable recording . In short, yes, blockchain can become a viable supply chain.
