We well know Blockchain technology is among the greatest innovation of our times, as its potential impact in the Supply Chain (SC) is evident for major companies applying this tool. But are SC executive in your company ready for this change? Does it really work for all sort of companies?
We can observe a large global manufacturing presence increasing mainly by the use of the Internet of Things (IoT), the boom of e-commerce, and the change of customers’ demands on their life-style. It is also evident how these new technologies increase the risk of purchasing imitation products, or how some big institutions suffer of the now-so-common practice of a cyberattack.
Leader might be puzzled about the impact it represents if they deployed Blockchain on their Supply Chain Management, modifying the way they used to handle all their data and processes. They might be afraid that it changes their current-established operation procedures, or products being changed when shifted among modules, altered, or when they are rotten. So, they need to learn more about the Blockchain benefits in their SC to take advantage of this amazing tool.
The outmost benefits of the application of Blockchain are: to increase end-to-end visibility, traceability, and security, whilst saving costs and time, moreover, you can benefit from many others as well, according to your company’s needs:
Reduces inconsistency of your data.
Increase payment processing accuracy.
Reduce the time between ordering and payment of products.
Avoids violations of international and domestic trade agreements needed.
Preventing from illicit payments requested by other countries or entities when shipping.
Gives you the ability to track purchase orders.
Assigning and verifying certifications.
Network physical goods to IoT devices, such as digital tax, barcodes, and serial numbers.
To know in advance, the entities sanctioned of doing illegal business around the world.
To correct problems across supply chains that might arose.
Sharing information among suppliers, vendors, partners, and even with customers.
The creation of contracts to hold vendors and suppliers accountable, specifying duties and responsibilities.
Traceability of all activities throughout the Supply Chain (quantity and transfers, payments.)
Ability to create public and private blockchains, protecting proprietary, if not private, information from unauthorised parties.
Assessing the state of products (food or alteration of packaging.)
Remote scalability of systems, networks, or processes to handle any issue while transporting products.
Consumers can verify the product purchased, and vendors and suppliers as well.
The emerging of new technologies is becoming day-by-day more accepted when autonomous cars, trucks, drones and even fulfiment centres develop, and the possibility of a remote scalability will be indispensable once Blockchain becomes forward.
SUMMING UP: investing in Blockchain tech is the best way towards soccessful change in standard operating procedure, because global trade will improve accountability, collaboration, visibility and efficiency, reducing conflict and improving collaboration among stakeholders into your Supply Chain. This increases efficiency and reliability within the Supply Chain.
Dave Food
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