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Blockchain for Supply chain management


Nov 13, 2017 Posted /  1131 Views


Blockchain for Supply chain management

Well-functioned blockchain

Supply chain management is the process  to organize the flow of goods and services along with the tracking the journey of a product from its origin to its consumption which involves various procedures. Products of any scale and caliber, are utilized by the people to enhance their sustainability. Supply chain of a company or organization makes sure that the product is created and  delivered with proper management. So we can say that supply chain is an important entity that makes the reach of the product to the huge population out there. What happens when such a vital management element of the market amalgamates with the very flexible and revolutionary platform blockchain. Well blockchain technology has that efficiency and versatility that can coordinate with any work of most of the sectors. But the question arises that is it feasible or profitable to combine blockchain for various sectors. Blockchain carries out the business transactions and trading relationships quite effectively along with robustly securing business networks on blockchain network both at small or big scale as well as around the world. Blockchain technology which gives a distributed ledger that is upgraded and validated in real time with each network user. It allows the equivalent visibility of the activities plus it also discloses the state where an asset is at a point, and the whereabouts of it.

The combination of supply chain management and blockchain can lead to few benefits like:

1 It can decrease or discard completely frauds or several errors
2. It can enhance inventory management
3. It can reduce the courier fees
4. It can lessen the delays right from paperwork
5. It can know about the issues quickly
6. It can enhance consumer and partner relationship

 

The value that is transacted can also be moved via an expanded supply chain thus making sure that what occurs at each point in the chain can be systematically recorded on blockchain network. Although Supply chains have changed, but companies have not upgraded the underlying technology for managing them over the years. With blockchain, companies can recreate their methodology towards supply chain management at the ecosystem level and go from just a perception to an amalgamated global outlook.

Will blockchain aid the development?

By applying security as well as redundancy to something which is pioneering, and can termed as an option to supply chain partners for banking nodes, and we have the basis for a fundamental new approach towards supply chain management. At the most elementary level, the main logic of blockchain implies that no portion of inventory can be there in the same place two times. Just shift a product from finished goods to in-transit, and the transaction state will be upgraded for each and everyone, anywhere, just in few minutes, with complete traceability back to the point of origin. The financial, physical as well as the digital information is brought on a single platform to let everyone know about the sources of value leakage from day to day incompleteness to scams which also helps you create plus enhance innovative methods to tackle them.

 


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Tags: blockchain supply chain management future of supply chain finance technology Ernst & Young digital finance supply chain risk supply chain security Blockchain and Supply Chain

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