In today's technologically advanced world, supply chains could dramatically improve efficiency, tracking, and limit exploitative behavior.
Recently, a report claims that customer goods, especially electronics, luxury brands, and pharmaceuticals, are susceptible to be counterfeited and fraud. To overcome such fraudulent activities, blockchain in supply chain came into existence.
Supply chain management is also considered as a logistics network. It is a data system of goods, things, and people involved in the process of trading.
The implementation of private, public, and hybrid blockchains will bring transparency, accountability, and traceability to movements of goods and commodities. This technology can also be applied to logistics to make the business process more efficient, effective and to cut cost from supply chain infrastructure
Now, let's explore how blockchain is implemented and evaluate the real benefits of blockchain technology in supply chain management.
Implementations of blockchain to supply chain management
In integrating blockchain technology into the supply chain, companies must understand and evaluate all the risks that they are likely to face. It is necessary for companies to review the nature of these risks and work out to eliminate the weak points with the help of blockchain technology. The basic three steps that should be followed to achieve the final goal are listed below
- Primarily, the business sets up an internal blockchain network. Initially, it may take some time to get familiar with the new technology but definitely pays back in the end.
- Secondly, extend your blockchain network by adding members such as direct suppliers and third party logistics. It is essential to collaborate with suppliers, customers, and technologists. Initially, it takes a certain effort to set up everything, and that's why many companies often pair up with forward-thinking service providers who value transparency and innovation for their customers.
- Finally, once the data availability is assured and exchange is promoted, all the players who are included in the supply chain can integrate, including end-users.
The most common issue in the supply chain management that has been addressed is the lack of transparency and traceability. To overcome this, blockchain technology provides the best solution. It simply reduces the time-delay, additional cost, and human errors that are common today.
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