Blockchain technology has revolutionized various industries, and one of its most prominent applications is in supply chain management. This article aims to provide a brief review of the positive aspects, benefits, and conditions in which blockchain can assist in supply chain management.
Benefits of Blockchain in Supply Chain:
Improved visibility into the entire supply chain process.
Real-time tracking of goods, ensuring authenticity and preventing counterfeit products.
Increased trust among stakeholders due to the immutable nature of blockchain records.
Reduced fraud and corruption by enabling tamper-proof transactions.
Complete traceability of products from their origin to the end consumer.
Efficient tracking of goods' movement, ensuring compliance with regulations and quality standards.
Quick identification and recall of defective or unsafe products, minimizing risks and enhancing consumer safety.
Streamlined Supply Chain Processes:
Automated workflows and smart contracts reduce paperwork, manual errors, and delays.
Simplified documentation processes, such as customs and regulatory compliance.
Faster payment settlements and reduced transaction costs through decentralized financial systems.
Enhanced Efficiency and Cost Savings:
Elimination of intermediaries and centralized authorities, reducing administrative costs
By using blockchain, all parties involved in the supply chain can have real-time visibility of inventory levels. This helps prevent stockouts by ensuring the timely delivery of food products. Blockchain technology ensures that data is accurate and up-to-date, making it easier to manage inventory levels.
How could the adoption of blockchain within a supply chain?
Adopting blockchain technology in institutions supply chain operations can do encourages collaboration and helps to reducs trust issues (Aslam et al., 2021; Lim et al., 2021). The main objectives of any supply chain operations is to focus on quality,cost, flexibility, speed, and risk reduction (Kshetri, 2018).
How is blockchain used in logistics?
In addition, blockchain provides smart contracts, enabling merchants and logistics organisations to create contracts that will automatically terminate if all of the specified conditions are not satisfied. These contracts improve transparency and profits while reducing monetary mistakes and delivery time.
What are the pros and cons of using blockchain technologies to manage the supply chain?
Pros & Cons of Blockchain Technology
Lower Optional Cost
Transparent and Universal Recording System
No Single Point of Failure
Enhanced Security And Confidentiality
Prevents Double Spending
How is blockchain in supply chains better than a regular system?
With a blockchain-enabled database, the brand is able to track the entire supply chain. The technology also allows all the supporting documentation, such as invoices and certifications, across the supply chain, in a more secure way.
Which company uses blockchain in supply chain?
Unilever aims to achieve a deforestation-free supply chain by the end of 2023, so they need to know how sustainable their supply chains really are. Existing systems for sustainability certification are not enough to provide this information, so the company decided to use blockchain.
The adoption of blockchain in energy supply chains yielded significant benefits: Cost Reduction: Streamlining processes, reducing fraud, and automating billing resulted in substantial cost savings for energy companies and consumers.
Frequently Asked Questions
How blockchain is used in supply chain management?
Blockchain technology can be used to ensure that products meet certain quality standards throughout the supply chain. By recording data on the blockchain at each stage of production, companies can track and verify compliance with specific requirements.
What is an example of a blockchain supply chain?
Blockchain is under consideration by the food industry for the food supply chain health. For example, Walmart with the collaboration of IBM innovatively uses blockchain technology to track the provenance and condition of its pork supply coming from China.
How does blockchain help food supply chain?
With blockchain, locating the contaminated ingredients and tracing the affected batches can be done in seconds, making the recall process much faster and easier. Consumers can verify whether their product is part of a contaminated batch, simply by scanning a code on the packaging.
What is blockchain in simple words?
A blockchain is a decentralized, distributed and public digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network.
Hospitals have moved away from paper for record-keeping, and they use blockchain technology to store patient data, which is kept confidential. The patient will be given a digital ID or a number key to access these records. Thus, Blockchain gives the patient control over who can see that data.
How does blockchain enhance supply chain management?
Blockchain helps organizations understand their supply chain and engage consumers with real, verifiable, and immutable data. Transparency builds trust by capturing key data points, such as certifications and claims, and then provides open access to this data publicly.
What problem can blockchain solve for the supply chain industry?
Traceability and Transparency
One of the biggest challenges for supply chain management executives is maintaining visibility across the network. Blockchain technology can help address this challenge by providing a secure and transparent way to track goods as they move through the supply chain.
Which blockchain is best for supply chain?
VeChain is a blockchain platform designed for supply chain management and product authentication. It enables businesses to track their products throughout the supply chain and verify their authenticity. Provenance provides supply chain transparency and traceability.
How does blockchain help supply chain
How does the use of blockchain support sustainable supply chain strategy?
The use of blockchain can support the SSCM strategy to reduce environmental impacts while still providing economic benefits and providing social benefits for all stakeholders in the supply chain. Environmental benefits include pollution reduction due to the use of transportation in more appropriate shipping.
Blockchain can also be used to reduce fraud and other trust-related issues in digital ad buying. Blockchain has a wide range of applications in healthcare, including improving payment processing, electronic medical records, provider directories, and data security and exchange.
Quality Assurance. Blockchain technology can be used to ensure that products meet certain quality standards throughout the supply chain. By recording data on the blockchain at each stage of production, companies can track and verify compliance with specific requirements.
How has blockchain changed supply chain?
Blockchain technology can provide real-time visibility and tracking of goods and products throughout the entire supply chain, from production to distribution to end consumers. This helps to increase transparency and trust between different parties in the supply chain.
How blockchain is redefining supply chain management?
Increased security. The supply chain management industry is increasingly turning to blockchain technology to improve security and reliability. By using blockchain, a record of every transaction in the supply chain can be securely stored and tracked.
Increased efficiency. The traditional supply chains often involve multiple intermediaries, manual record-keeping, and time-consuming reconciliations.
What problem does blockchain solve in supply chain?
By connecting inventory, information, and financial flows and sharing them with all transacting parties, a blockchain enables companies to reconcile purchase orders, invoices, and payments much more easily and to track the progress of a transaction with counterparties.
Blockchain enhance improvement in various aspects like security, transparency & traceability, performance, product deletion, feasibility, smart logistics & transportation, immutability, integrity, financial transactions and real-time tracking and tracing. supply Chain management to make supply more secure.