Blockchain Turning the Tables for Procurement Organizations
With the development of technology each day, organizations are hunting for new innovative technologies that can boost the performance of their supply chain. Despite advancements in technology are an everyday thing in digital technologies, procurement processes also suffer from several challenges such as trust, visibility, data inconsistency and time sensitivity. Evidently, organizations that were earlier using analytics and big data are converting their focus to Blockchain as it promises better solutions for all the above challenges.
The Blockchain can set procurement organizations standard high by providing secure collaboration for contracts, digitization and standardization of the multi-party supply chain, and synchronized information management. Smart contracts that are programmed to handle logical operations on Blockchain are processed by computers that provide a higher level of trustworthiness than humans. When the Blockchain networks offer distributed reliable storage, smart contracts offers accurate calculations in computer codes which cuts out intermediaries, however, providing transparency, by being visible to everyone on the Blockchain.
As blockchain possesses the ability to store and record all transactions in a cryptographically authenticated database, it embeds trust and transparency within multiple parties involved. Additionally, by digitization and standardization of supply chains using blockchain organizations are exposed to better capabilities that result in achieving higher growth targets.
Although Blockchain has the charisma to turn the tables for procurement organizations, there are several challenges that it needs to overcome. Some of those include the resistance organizations have grown in sharing information with unknown network partners, not standardized laws and regulations across countries. Blockchain can only be adopted if industries agree on standardized technology and contract structure across international borders and jurisdictions.