Blockchain was established as a means to record ledger accounts for the bitcoin trade that has boomed in recent years. However, since its inception, its transparency and instantaneous records have been compelled. Industry leaders to incorporate them into the functioning of each sector of business.
Supply Chain has emerged as one sector which is best prepared and in dire need of blockchain technology. Studies have proved that inducing blockchain technology in supply chain management will make it more cost-effective. Enhance the tracking of stocks, and speed up the process.
is one sector that is hands-on and requires more human labour and physical clarifications for its functioning. Automating its clearance, and digital records of products in the supply chain will help eradicate errors and save cost, time, and labour for stakeholders.
The tampering with products, human errors, and tedious paperwork can be avoided by intervening in blockchain in the process. So, let’s look into the progress made by the sector in adopting blockchain technology and predict what the future holds for the same.
In recent times, the supply chain has proven to be efficient with the use of blockchain technology. The following are some industry examples-
Company Walmart, set up a tracking application to track the products in China and other parts of the world it is sent. Blockchain has helped in maintaining accuracy in the record-keeping in the following case.
Eminent supply chain owner, IBM. With the help of blockchain technology, are trying to build cross-border transactions while maintaining the efficient record and instantaneous speed of the trading. A seminal practice has been observed in Maersk as well.
BHP is building a blockchain-efficient supply chain that can be used for tracking products from a range of providers. This technology will substitute the conventional practice of tracking by spreadsheets on the computer.
Among the start-ups, UK-based start-up, Provenance pioneered in the industry by funding up to $ 8000,000 for the development of blockchain-efficient solutions for the food and beverage 9ndustry supply chain.
As experts around the world are intensively looking for Blockchain efficient solutions in their respective supply chains. Let’s look at the key features that distinguish this new-age technology-
The foremost advantage of blockchain solutions is the advanced and more accurate tracing and tracking methods for the products.
This will abate the black market or illegal trading along with avoiding tampering with data in the process, making it more transparent
Improve visibility and compliance over outsourced contract manufacturing
The digitisation of the supply chain monitoring and clearance saves a lot of time and resources by avoiding the tedious paperwork and intermediary administrative work.
The transparency in the manufacturing material will help set up industry standards. Higher up the ladder of maintaining accountability among the stakeholders.
As blockchain is a publicly owned network and all stakeholders will have access to the data, it increases trust and helps even strengthen the brand image in the public eye
On the other hand, before a large-scale application of blockchain technology in the supply chain. Certain pain points need to be addressed for efficient execution of the same-
The researchers have been unable to determine the blockchain’s unique value to the supply chain sector.
The supply chain industry is a very data-intensive industry. Blockchain technology needs to be examined and built in a certain way. That is capable of collecting and storing data from various untrusted parties involved in the process.
The capital required for the blockchain solutions of respective supply chains is unpredictable and has not been determined yet.
The gap between blockchain’s current capacity and the capacity that supply chains will need is enormous.
in the supply chain industry are proven to be more capital, time, and labour efficient. These speed up the whole supply chain while allowing accurate tracking of each product and making it more efficient.
for addressing the drawbacks that are being faced in the current supply chain management. It is now time for supply chain managers. Who is standing on the sidelines to assess the potential of blockchain for their businesses.
With its enormous advantages, certain pain points need to be worked out to ensure the efficiency of the system. The blockchain-based solutions will only be implemented when all the stakeholders give a consensus and are adept at handling blockchain-based technology at their end as well.
The supply chain industry
generates the major constituent of GDP in developing countries like India and China. Hence, gruelling losses in these countries will be financially straining for their respective economies. Only after thorough research and testing can such a high-tech solution be adapted to this enormously large setup.
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