The future of blockchain within the supply chain December 6th, 2019
Hundreds of businesses are jumping into what blockchain has to offer. Early investors have come to find that there is tangible proof surrounding the positive benefits of how blockchain is integrating itself into supply chain management. Companies using blockchain will likely save more money, by losing fewer products/items and better managing inventory with a greater sense of efficiency. Though most results may appear invisible to the general public, internal executives will notice the difference.
Supply chain with blockchain
The promotion of decentralized solutions within the supply chain will usher in the next generation of the industry through transparency, scalability, and advanced security. Such ledgers are immutable and can enable all transactions to be marked with a time stamp, which better assists employees with internal audits, to stop product counterfeits, and theft of goods.
Tracking and tracing with blockchain will help dissolve disputes faster while enabling accountability at a real-time rate. Digitalisation of documents and workflows will reduce delays and the human error that comes along with paperwork, while still being compliant to regulations. Just think, there could be a concurrent optimization of workflow, due to the work of blockchain. Decentralizing will enable a lower carbon footprint, as well. The increased automation and the verification of every party within the supply chain will work together to drive a safer workplace.
With blockchain, you’re eliminating the middleman in many ways. Smart contracts or crypto contracts run on blockchain and can enforce agreements at the same time. This removes any unnecessary frictions and essentially the middleman, when it comes to financing. With no invoices in play, it is believed that costs could drop overall.
Transparency for all
One of the largest benefits of blockchain in the supply chain is the transparency for logistical purposes. Transportation logistics is a main piece of the supply chain, and to have a consistent understanding of where different points of data are along the line is important. This, in return, offers a great sense of quality assurance for customers and employees. Using blockchain in the supply chain allows participants to access critical data and validate necessary milestones per transaction, accordingly. Though blockchain within the supply chain is still at its earlier phase of life, it’s likely to show steep spikes in adoption rates over the next couple of years.
Samantha is BlueStar's Digital Media Specialist, and the primary contributing writer for VartechNation.
Previously, she has worked as a Public Relations Associate and a Social Media Manager.