Blockchain Adds New Dimension to Supply Chain
Supply chains can benefit from new technologies. 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 asset for businesses. It is stored in different forms and used for several purposes. Businesses rely on information for every step and decision. Blockchain empowers companies to run efficiently by delivering information through a shared and immutable ledger. The supply chain uses blockchain technology to achieve transparency in monitoring processes and reduce operational expenses.
Advancements in monitoring: 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 supply chain management. A blockchain can provide this information to increase the traceability of the supply chain of materials, decrease losses, improve visibility and compliance over outsourced contract manufacturing, and help organizations increase their reputation as a leader in responsible manufacturing by facilitating these activities.
Recent developments: A growing number of large corporations and startups are exploring the applications of blockchain technology outside of the financial services industry as the technology gains attention. An increasing number of organizations are exploring blockchain innovations to meet various needs. In addition to improving transparency, reducing risks, and improving efficiency and overall supply chain management, blockchain-driven innovations in the supply chain have tremendous potential to deliver tremendous business value.
Supply chain value creation: The application of blockchain technology in the supply chain can provide increased transparency and reductions in costs and risks at every point of the process. Additionally, blockchain technology can optimize the traceability of materials, reduce gray market losses, and reduce administrative expenses. It also builds creditability, reputation, and public relationships.
Digital assets allow organizations to track assets from production to delivery and use, enabling decentralized, immutable records. A distributed ledger of all relevant information can speed up manual compliance or credit checking processes that take weeks. High-value goods such as diamonds and pharmaceutical drugs can benefit from blockchain-driven supply chain transparency.
Blockchain technology is gaining momentum within the business landscape, and companies should keep an eye out for the industry players who have been experimenting with the technology. In a supply chain, blockchain has the advantage of the network effect. Once a critical mass has been reached, it becomes easier for others to adopt the technology.