In this digital age, there are new technological developments almost daily. AI has grown to immense proportions already, and it will only grow exponentially in the future. One important technology in this era is blockchain. Blockchain is a decentralized, secure digital ledger where everything is publicly recorded and tamper-proof. As an example, the cryptocurrency Bitcoin, which uses blockchain as a ledger, has swept the nation in recent years.
Some people have found different uses for the blockchain phenomenon. One of those uses is decentralized autonomous organizations, or DAOs. These are organizations whose decision-making authority is decentralized and self-governing through blockchain technology. This ledger ensures transparency in these DAOs, and those involved can confidently depend on the accuracy and transparency of every transaction within any single block of information in the blockchain. Pretty neat, right? Let’s look at how blockchain can help you with your supply chain in your business.
Transparency and Traceability
Transparency and traceability of actions leading to the final product is essential in any multistep business process. Logistics companies especially need to know when and where items are in the process. Even if there is a system in place to track items, some of those items can be accidentally or intentionally manipulated to cover up mistakes made by any party in the supply chain.
Blockchain is decentralized and records everything publicly. If someone wanted to change a scan, they could not. Each product is assigned a unique digital signature or identifier recorded on the blockchain. The origin of a product would be easy to identify, and counterfeiting goods would be nearly impossible. Blockchain holds all transactions as a part of the blockchain, making fraud very difficult. This control over your supply chain would increase accuracy and authenticity and prevent tampering.
Efficient Documentation
An administrative benefit of using blockchain is efficient documentation. Supply chains usually involve numerous documents and paperwork, leading to delays and errors. Blockchain provides digital documentation and intelligent contracts, automating processes and reducing paperwork from all parties. If any parties need a document, it would be publicly available on the blockchain. With the blockchain method, everyone sees everything, and transparency is forced and recorded. Because blockchain is tamper-proof, it facilitates precision in timing.
Real-time updates are impeccable with blockchain due to its decentralized nature. It allows multiple parties access to real-time, updated information. Everyone in the chain has access to the exact information, materials, or products incoming. This increases coordination, allows for quick decision-making, and improves overall efficiency.
Blockchain is also great for supplier verification. We have all ordered something and received either the wrong product altogether or a product from a sub-par provider due to outsourcing labor. The blockchain would have where the product came from in its ledger because of the unique identifier. You could adjust, cancel, or order weeks before the product hits your warehouse or customer, improving your reliability and communication from the beginning of the supply chain to the end. If there were ever any malpractices in the supply chain, the documentation would be ever-present and able to be used to pinpoint pain areas. Bottlenecks in the process would be easy to identify as well. Risk management and mitigation also become much easier by having a clear view of the entire process.
Conclusion
If you want to invest in yourself and your suppliers to build a more robust supply chain for your bottom line, this could be the solution for you. Keep in mind that while supply chain blockchain is increasing in popularity, it’s still a newer use of the technology and will come with a learning curve. You may need a specialist to accurately implement this technology and to train and educate your suppliers on how the process works.
The world is moving towards this technology, and many big players are already using it. Soon, the rest of the world will follow suit as it becomes more widely available. Blockchain Oracle, a third-party service, for example, is an entity that connects blockchains to external systems. It allows the user to create smart contracts. Successfully implementing blockchain for your supply chain will lead to increased profitability because of the accuracy and strong trust between you and your suppliers.
