How Blockchain Provides Solution for Supply Chain Frauds
Globalization has leveraged the supply chain network due to which this network is becoming more complex as raw material are sourced from various locations and are shipped to places which are hundreds of miles away. To address these challenges, industries are moving towards the adoption of supply chain network. Blockchain gained prominence only after the introduction of bitcoin, but soon this innovation will play a vital role in the supply chain market too.
The supply chain is all about distribution and organizations are striving hard to adopt good distribution practices. Well this, delivery can occur in both upstream as well as downstream. So, here upstream refers to the suppliers who manufacture goods and services used in a company’s operations such as raw materials whereas downstream refers to the distribution of a company’s product or services to its customers. Hence, both need to be managed well at an individual level.
Complexities and Solutions
The challenge faced in the modern time is the ever-evolving supply chain network and the growing complexities with it. These complexities represent risks, which include goods falling out of required storage parameters or risk of contamination.
Therefore the possible solutions, industries have adopted is to address these risks with the blockchain technology. The blockchain technology gives access to every company in the supply chain network. When a transaction is recorded, it is accessible to all the parties involved, but no sort of alteration or manipulation can be done. Hence, the tracking of products become convenient, and all the users are made aware at the same time.
Another added advantage is the secure transmission of accurate information amid the users and the supply chain network. Blockchain enables managers in the supply chain network to keep track of inventory and the exchange of cash from the initial step till the last stage of the final product to the consumer. In this way, every link in the chain will be able to monitor each other’s raw, material inventory, the work in process and the final product as well thereby allowing increased visibility and greater accountability. The suppliers will also be able to track and predict the demand for the product based on the flow of inventory.