Five Ways that Blockchain Can Transform the Supply Chain
The word ‘”blockchain” has been buzzing around the supply chain and logistics space for the past several years. Recently, the concept of blockchain has emerged as a legitimate component in the supply chain world and there are many definite advantages of how blockchain can transform operations. Blockchain is a distributed database that holds records of digital data or events in a tamper-resistant and secure way. While many users may access, inspect, or add to the data, they cannot change or delete it. The original information stays put, leaving a permanent and public information trail, or chain, of transactions. In short, it is much more than Bitcoin. Here are five ways that blockchain can transform your supply chain:
- Blockchain makes it easier to track all flows and goods by recording all transactions made by users. These records are indestructible and constitute tamper-proof evidence that guarantees the integrity of information. People can also find out more about the products they are buying, for example, whether a product has been ethically sourced, is an original item, or has been preserved in the correct conditions.
- Blockchain allows you to secure your supply chain. A simple tag placed on each product recorded in a blockchain enables the user to see all of the pertinent information (origin, place of storage, authenticity, property certificates, etc) in one single ledger. This could potentially eliminate checks and audits which are part of current systems and processes.
- Blockchain will bring any supply chain an exponential opportunity for innovation. Companies will be able to create new and specialized uses from this technology that can propel their systems in ways they have not yet imagined.
- Blockchain has the ability to create seamless connectivity across various supply chains. Historically, supply chains have been very fragmented but blockchain has the ability to reduce the amount of siloed information and create a “single source of truth”.
- Collaboration is key in 2018 and the years to come. Blockchain offers multiple opportunities for collaboration between stakeholders. The collaboration can happen internally, between partners, and through industry consortia. When a company signs up for blockchain, it is agreeing to be part of a collaborative journey. This journey will involve working with a diverse set of public entities, private entities, regulators, partners, government organizations and even competitors.
As stated, the beginning of the blockchain takeover is here. What other ways are there for blockchain to transform the supply chain? Let us know in the comments section.
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