Implementing Blockchain in Supply Chain Management
A Supply Chain is the process involved from the inception of producing goods to delivering it to the end customer through a long and complicated process that span hundreds of stages and multiple geographical locations. With the multitude of invoices and payments that involve several entities, the transparency of the supply chain is lost somewhere in progress. This blog post will shed light on how Blockchain will advertently affect Supply Chain Management.
Shortfalls of Traditional Supply Chain Management
The current supply chain management is broken in several ways as of now because of the entry of international locations that need the product to be delivered irrespective of its reach. Consumers are spread throughout the world, and a single product will have its reach to the farthest points of the world. Therein lies the issue of delivering such product to any location. Ever since manufacturing of products has been globalized, supply chains needed to be re-innovated to overcome any roadblock of reaching out to the end user. There is also the problem of the continuous supply chain that is not tarnished by any illegal or unethical practices as it may cause havoc on the distribution of the said product. SCMs can also be highly inefficient as vendors and suppliers in every checkpoint of the supply chain where the chances of human errors, time delays and ordering costs are increased manifold.
Blockchain Stepping into SCM
Blockchain was created with the sole purpose of supporting Bitcoin that needed a distributed ledger where it stores every transaction that has ever happened and highly transparent. Since there is no central authority in the blockchain, it is secure at every scale. Blockchain will enter SCM to address the current supply chain that is lacking the essential transparency from warehousing to delivery to payment. The use of permissioned blockchains in SCM allows its participants to express authority over the validation of blocks of transactions.
Blockchain also seamlessly bring together multiple entities over a single platform and share information that can be accessed from any node like OEM, suppliers, end customers, and regulatory bodies. For a single organization that contains a massive supply chain, a distributed application can make sense to the beholder. Also, blockchain helps in synchronizing ledger information so that the data entered in blockchain can never be wrong or manipulated at any given time. Inventory can be improved with the advent of the blockchain by ordering them into sets for easy access. The chances of manual errors are also significantly reduced as every entry of data and every transaction is automated.
Conclusion
Setting up a supply chain management for an established enterprise is no mean feat. Blockchain App Factory provides enterprises with a top-notch supply chain management created in the blockchain. With attributes like cryptographic ledgers, digital ownership certificates, proof of origin and shared datasets, the SCM solutions created by Blockchain App Factory is user specific. The solutions are built from the ground up and can be used in various parts of the supply chain and can be unparalleled in the supply market.