Introduction of Blockchain in Supply Chain Industry


Have you ever think to retrace the origin of your mobile phone? Or from where you stylish and designer clothes came from? The stores which sell these products are the last one to a long thread of supply chain from where the clothes were just wool balls. Every industry is supported by its own supply chain management system but the clothing industry is considered as one of the most relevant industries. A supply chain is completely based on the planning and execution of all the process that includes getting finished products. 

But, the practical implementation and maintenance of the supply chain is a very hectic job. Currently, the supply chain is also troubling with various issues that influence its efficiency level and reflect a negative impact on business operations. The advanced technologies like AI and Machine Learning are used in supply chain management to overcome its inefficiencies but they are hazardous for the businesses. But, blockchain technology has come up as a total game-changer for the supply chain management by offering an efficient way for record-keeping and tracking products. Nowadays, companies are approaching the Supply chain blockchain consulting services to implement blockchain in their supply chain management process. 

Blockchain Inclusion In Supply Chain 

Blockchain technology can provide an effective solution for many challenges of the Supply Chain Industry like complex record-keeping and product tracking. Apart from it, blockchain technology offers various benefits for supply chain functioning.

·         Origin Tracking 

In case of a high volume of transactions, many elements in the supply chains lose the track of transactions. These inefficiencies lead to the issue of additional overhead costs as well as negatively impact the brand value due to unpleasant customer relationships. Here, blockchain-based supply chain management offers provenance tracking and record-keeping benefits that enable us to fetch the information easily with embedded sensors and RFID tags. With this, product history can be easily traced from its origin to the present situation at any point in time. This feature can also be used for detecting and preventing fraud in a complex supply chain.  

·         Cost Reduction 

Cost reduction is one of the top benefits of using blockchain supply chain management because of its real-time product tracking feature. With blockchain, the extra cost can be eliminated while maintaining transaction security. Apart from this, it also eliminated the role of middlemen and intermediaries in the supply chain. This will eliminate the risk of fraud and product duplicity while enhancing accurate record-keeping and saving benefits.  

·         Build confidence 

When multiple participants are included in the complex supply chain it becomes essential to build the trust in the system for its smooth operations. For example, the integrity of records should be done in such manners so when a participant passes the information in the supply to the next participant, the receiver can trust that information without any confusion or doubt. Moreover, the regulatory authorities and stakeholders should also be able to trust that information and records. The blockchain is defined by immutable record-keeping that helps in preventing the information from any kind of tampering on all the levels. 

Key benefits of blockchain in Supply Chain Management

·         Interoperability 
The blockchain enables the data to be interoperable in an easy way with the data sharing process among the manufacturers, contractors, retailers, and vendors. The transparency in data sharing will prove beneficial in reducing delays and conflicts. It also prevents the products from getting stuck in the supply chain as all the products can be easily tracked in real-time that eliminate the chances of misplacements. 

·         Scalability 

The blockchain supply chain provides scalability with a huge database so that it can be easily accessed from different locations around the world. To maintain the excellent security system user can modify according to the data feeds. In all of this, “selective permission” is one of the most lucrative features through which participants can view the data for which they get permission. The other benefits of using blockchain supply chain management include:-
  • Eliminate the chances of frauds and errors
  • Reduce courier costs
  • Advanced inventory management
  • Quickly Identify the issue
  • Minimize the delay in paperwork
  • Build consumer and participant trust 

Approach Group50 experts for Blockchain Consulting & Solutions

Group50 is a full service consulting firm established in 2004 and backed the team of highly talented Supply Chain subject matter experts. They provide their Supply chain blockchain consulting services for manufacturing, purchasing, quality systems, digital technology, market & sales, product development and more. Contact the Group50 experts to get Blockchain Consulting & Solutions.



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