Blockchain as a Game Changer in the Supply Chain Industry
In simple words, Blockchain can be defined as a distributed database containing huge records of digital data with tamper-resistant storage ability. Although users can have access to that data, they can add more data and inspect the existing one; but they are not allowed to make any changes. Earlier, the term was used interchangeably with the cryptocurrency; but today, experts have redefined its potential in other sectors of the world as well.
With the huge efficiency to protect data online, Blockchain appears the best choice for banking and finance. It can ensure safe and protected transactions from any corner of the world. Moreover, it becomes easier to organize transactions with Blockchain technology.
Recently, some experts shared their knowledge base about how effectively we can use Blockchain in supply chain management as well. If you are interested to know more about this fact, prefer to go through the details below.
Blockchain in the Supply Chain:
Before we define the application of blockchain in the supply chain industry, it is first important to understand what is supply chain basically. Have you ever thought about how the products you are using in your routines reach up to you from their manufacturing terminals? The smartphones, clothes, shoes and many other things that have become an integral part of your life. Well, all this happens just because of the supply chain.
For instance, let us consider the supply chain for the clothing industry; it includes:
- Sources of raw materials.
- Factories that process raw materials to create the final product.
- A large distribution network that brings the final product to the consumer.
There are millions of people who are connected to this clothing supply chain on the globe. But usually, it is difficult to manage things at every stage with manual processes. Blockchain can be applied to address all such challenges in the supply chain industry. It can handle record-keeping needs while maintaining a perfect track of products. With blockchain, we can ensure a highly automated alternative to the supply chain. The centralized databases make it easier to track all the elements at different stages. The product information becomes accessible online via RFID tags and embedded sensors.
At the same time, the real-time product tracking mechanism reduces the cost of the entire process. On one side, this technology can speed up the process by eliminating the need for any middleman; on the other side, it makes it possible to avoid the risk of duplicacy and fraud. In this way, you can ensure a more profitable business with the least risk of losing your products on the way.
Blockchain technology also increases the trust among various parties involved in the supply chain. The manufacturers, retail stores, and the end consumers all can stay satisfied. While proving inventory management, it also reduces delays due to unnecessary paper works. Consumers can also enjoy the reduced cost of currier for their ordered packages.