Revolutionizing Supply chain via Blockchain Technology
Managing today’s complex supply chain is a herculean task. The sheer complexity coupled with the transparency and security challenges alongside lack of transparency in the organization’s current systems are presenting a great problem for organizations. Blockchain proves to be the most promising technology of choice to simplify the processes and bring forth transparency and usher in a complete transformation in the supply chain and logistics industry.
The blockchain is mostly used for transactions, exchange of agreements/contracts, tracking and, of course, payment in logistics landscape. Since every transaction is registered on a block and across multiple copies of the ledger that are distributed over many nodes, it is regarded as highly transparent. As blockchains enable the transfer of funds anywhere in the world without the use of a conventional bank, it’s very convenient for a global supply chain.
For instance, in the food industry, it’s essential to have all the records to trace each product to its source. As a result, organizations in the food landscape use blockchain to keep track of the food item sourced from other countries. Blockchain gives detailed information about the origin of each piece of meat, where and when it was processed, stored, and its sell-by-date.
Delivering one central authority, blockchain provides greater efficiency and transparency of supply chains. The transparency of blockchain is crucial to allow consumers to know they are working with firms that share the same values of environmental stewardship and sustainable manufacturing.