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Wednesday, July 6, 2022

Blockchain Technology Is Used In Supply Chain Management

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Blockchain is an open ledger with nodes inter-linked using hashes.This makes it transparent since everyone in the chain can access information.The nodes are also immutable, meaning the transactions are secure, and no one can tamper with them.

Blockchain is a revolutionary technology that’s changing every industry.

It has transformed the economy by working on the business processes of industries. This includes the logistics industry.

Blockchain is an open ledger with nodes inter-linked using hashes.This makes it transparent since everyone in the chain can access information.The nodes are also immutable, meaning the transactions are secure, and no one can tamper with them.

Blockchain changes modes of operation and has been a significant game-changer for many things.

Some of the ways blockchain technology has influenced the supply chain industry include:

Increase transparency.

Blockchain entails a distributed ledger. It means it’s one platform with a shared version for the same thing.

This has helped the supply chain industry to have increased transparency. Everyone in the chain can know what is happening. This means in the supply chain; you can know this stage of a product in the chain. You can also be able to make accurate predictions on product delivery or supply. It’s also easy to know when it will take a product to move from point A to point B in the chain. With increased transparency, there are fewer middlemen in the chain hence cheaper costs.

Cheaper costs

Blockchain has reduced logistics costs, as it has reduced the number of intermediaries. This has helped, especially in cross-border transactions or cross-border payments.

Apart from the cost, it also reduces the time it takes for the transaction to be complete.

Streamlined supplier-onboarding.

Supplier onboarding is very cumbersome and time-consuming. Blockchain is an immutable chain of Records, meaning it can have supplier information. Thus, it’s much easier to do supplier onboarding. The records for suppliers are immutable, and you can trust the network participants.

Small chances of supply chain disruption

Through blockchain, there are smart contracts. It means it is automatic when two parties meet a particular condition; you get a contract. This has helped to make the supply chain processes efficient and resilient. Transactions can also happen in real-time. There’s also real-time visibility of all operations in the chain, which increases efficiency.

Easy upgrade/improvement of the system

Through blockchain, there’s accurate data, which you can use in doing research. To improve the system, you need timely, accurate data. You can make predictions and know what you can improve on. This means that within a short time, you’ll have an improved system.

Less food wastage

Blockchain helps to track food supply chains. This has helped increase food safety and reduce food wastage in the chain. Through blockchain, retailers and consumers can access producers. It means there is less wastage in-between.

Identity verification.

Identity verification has been a challenge in traditional systems. It’s time-consuming, and sometimes it’s hard to get all the details on time. Through blockchain, it keeps a record of the identities. It’s also possible to do digital identity. Digital identity helps in onboarding and creating supplier trust. Suppliers can create better relationships with many buyers. And this can help in increasing the efficiency of the system.

Accessing global markets

Through blockchain’s platform, different markets can come together. This, thus, helps buyers and suppliers to meet . Blockchain cuts off middlemen connections. Suppliers can access buyers to do business with. This has become ideal, especially during the COVID-19 crisis.

Prevention of counterfeits

Counterfeits have been a big challenge to deal with in the supply chain. It is because it takes a long time to trace the source of the product. With an open ledger of information, you can trace the source of the goods. You can quickly know the source of the counterfeit goods. This has, in turn, helps to regulate and prevent counterfeit goods.

Increasing trust in doing business

Blockchain has a basis of smart contracts. It means that two parties must meet a specific condition for the contracts to be complete. This has reduced the chances of getting conned or people losing their money. As a result, blockchain has helped increase trust between retailers and suppliers.

Inventory and cargo tracking

Blockchain is one platform with many transactions. You can get a unified digital document system in the cloud. This helps the supply chain tracking inventory and cargo in real-time.

This is already in use by many companies such as Walmart.

#Blockchain #Supply Chain #WazirXWarriors

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