Whether you are a startup, an established business, or falls under the category of SMEs, managing a supply chain isn’t easy.
Supply chain management has become such big business now that all sorts of experts are starting to make it their mission to eliminate pertaining inefficiencies and save money for companies. AI (Artificial Intelligence), machine learning and other new disruptive technologies are already being tested to fix the challenges in optimizing the supply chain. And blockchain is another technology on the block, which seems ready to change the game.
Here, we’re talking about the technology which underlies Bitcoin and other popular cryptocurrencies. It acts like an unshakable, distributed and decentralized ledger. It’s being known as a mechanism that’s excellent in record-keeping and makes it easier for cross-industry businesses to work together over the web.
It was initially designed purely for enhancing financial transactions but now have become a versatile technology that contains all sorts of potential use cases. And, when it comes to the supply chain management, for instance, it can help businesses to track the whys whats and when for every single order in the supply chain.
It can lay the foundation for the development of interoperable systems. This will allow you to have a more accurate view of the situation lying beneath the bonnet of your business.
Being an effective and incorruptible ledger, blockchain technology makes it easier to track and monitor your compliance efforts by storing each and every step of the process. Meanwhile, blockchain data can be made available for auditing and other third-parties such as compliance personnel.
The eyes are already shifting towards the blockchain technology. For instance, IBM and Maersk have come together to create a blockchain-based electronic shipping software system. It’s believed to help track their cargo in real-time. It’s expected to preserve the worldwide shipping industry millions of dollars every year.
The blockchain is an incorruptible digital ledger that can effortlessly store and manage records for every tangible and intangible asset. It can store records for every asset when changed hands, information such as who bought it and paid how much for it. So, we can imagine a complete permanent history of an asset from its provenance to when it was sold. There are many significant benefits to this. Experts will be able to find innovative ways to reduce human errors and delays. Thus, save time, money, resources.
The data sharing can also be done throughout an organization. It will enable various departments within a company to work more efficiently towards a common aim. Eventually, it could even transform the way we operate in our professions.
Bringing blockchain technology into the supply chain management can benefit in many ways, from keeping the complete transfer history of an asset to tracking purchase orders, receipts, and other related paperwork. It can also help business owners in identifying crucial data. Using blockchain technology for supply chain management can enable owners to know whether certain packages are fragile and need to be handled with care or whether fresh produce is organic or not.
Companies can use private blockchains to keep data internal. They can share it with those who have been given explicit permission to access it.