New technologies are constantly being implemented across various industries to improve business processes and bring companies more value for less effort. One of these industries is the supply chain where there have been some challenges present for almost a decade and without successful solutions.
Utilizing blockchain in supply chain management can potentially improve transparency and traceability in this industry, while also reducing administrative costs. A blockchain-supported supply chain is able to help users in recording prices, dates, locations, quality, and any other important information that leads to more efficient supply chain management.
Moreover, blockchain technology leads to increasing traceability of the material supply chain, reducing counterfeit losses, enhancing visibility and compliance, while it also has the potential to improve the positioning of the company as a leader in reliable manufacturing.
As blockchain began gaining publicity, many big companies and startups were exploring potential uses of this technology outside the financial service industry. This lead to many organizations across various industries experimenting with blockchain innovations to satisfy a wide range of their needs.
One of the first supply chain blockchain technology startups that implemented was Provenance, and it was for tracking responsible tuna sourcing in the territory of Indonesia. Another start-up in the same industry that is making the most of the blockchain industry is Monegraph. The company is using the technology to enhance the security of usage and sharing rights of digital media content, but also to enable sharing of their revenue across different audiences.
The third example is a company named Skuchain which builds blockchain-based supply chain finance products on the global market, estimated at $18 trillion. Looking into these three examples, blockchain technology in supply chain management has incredible potential to deliver enormous business value when improving supply chain transparency, decreasing risk, and enhancing efficiency and supply chain management in general.
This technology improves supply chain transparency but also reduces costs and risk across the entire supply chain management. There are plenty of crucial benefits the blockchain technology can deliver to its users and some of the most relevant are:
Blockchain technology has the potential to have a more transparent end-to-end process in tracking. All these organizations are able to digitize physical assets while also creating decentralized firm transaction records, enabling asset tracking from the phase of production to delivery. This level of supply chain transparency is offering more visibility not only to businesses but also to consumers.
Also, one of its biggest benefits is in helping reduce fraud for high-level goods, but also in helping, companies see how ingredients are passing through each of the subcontractors and decrease profit losses that way. By eliminating or reducing the impact of counterfeit products, which most supply chain companies have been struggling with, the confidence in the end-market is also growing.
Undoubtedly, there is immense potential, and with technology development, the potential of it helping supply chain management will expand as well. Technology as such is able to maintain more control over outsourced contract manufacturing. Also, it provides all parties involved with access to the same information, which leads to a reduced amount of miscommunication or data transfer errors.
Another thing that can be applied in this industry is the blockchain voting system. As supply chain management involves so many parties, taking the example of a voting system backed up by blockchain technology, this can easily be represented in the supply chain to improve the entire decision-making process.
Blockchain technology is not going anywhere, so it’s safe to say that companies in the supply chain management will slowly start implementing it to improve their procedures if they haven’t already. After all, blockchain has become so much more than just a technology, it’s a competitive advantage. It puts you in front of your competitors and brings you closer to your target audience. If you’re looking for a blockchain consultancy agency with high-level experts who will help you implement this technology successfully into your supply chain company, make sure you do proper research and find the ones with proven experience in the field to get the value you’re looking for.
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