The potential of Blockchain for supply chain management and transparency

New technologies are offering promising chances for optimizing the efficiency of supply chain. Using blockchain in the supply chain come with the potential to streamline its traceability and transparency.

Nowadays, most companies are looking forward to reduce their administrative costs. With blockchain, it becomes easier to decrease these types of costs. Blockchain technology can be utilized in supply chain management to enable stakeholders to track and record information related to pricing, quality, location, and other relevant data.

As blockchain gained popularity, companies of varied types and sizes began experimenting with it. One of the latest innovations of blockchain is to use it to fine-tune supply chain. The innovations driven by blockchain in the supply chain can provide terrific business value by augmenting its transparency and decreasing the risk factors. Here are some essential things to know about the deployment of blockchain in supply chain management.

Comply with the ever-evolving requirements of your customers

Modern-day customers are always on the lookout to get customized services from their favorite brands. They are demanding exceptional delivery experiences. And if your brand cannot offer fast delivery timelines, the customers won’t think twice before moving to your competitors. So, what is the best way to mange this crisis?

With the implementation of blockchain, you can streamline the crucial processes of a supply chain. Moreover, a lack of visibility into the supply chain processes will no longer be suffice to keep pace with the demands of customers. Blockchain is a decentralized and distributed ledger that prevents tampering. You will be able to foster trust and transparency with the help of blockchain.

Achieve operational excellence with blockchain

The logistical processes in any supply chain comprise a large number of participants, locations, and other elements. Regularly engaging with numerous factors can introduce various types of inefficiencies, inaccuracies of data, and improper integrations across supply chain operations. But things will be different once you implement blockchain in the supply chain.

With blockchain, you can enable automation and digitization on the shared network infrastructure. You will be able to optimize productive communication and collaboration between parties with blockchain. Even in this digitized age, most companies are reliant on paper-based supply chain operations.

Deploying blockchain is an obvious way to automate the critical processes of your supply chain. You will be able to decrease the risks of duplicate orders and accounting fraud with blockchain. The smart contracts of blockchain can automatically execute agreements. These agreements will allow faster and more timely reconciliation of cash.

Creates greater visibility among stakeholders and employees

In supply chain operations, you need to have complete visibility to get things done efficiently. However, manual processes can weigh you down with inconsistencies. In logistics, digital transformation is an absolute necessity. You cannot afford to lose customers with manual work processes.

One of the key highlights of blockchain is that it can easily integrate with other technological platforms like IoT, ERP, RFID, etc. and by integrating with these platforms seamlessly, you can have secure, verifiable and predictable information.

Another key highlight of blockchain is that it makes specific information visible only to those who have the authority to view it. So, if you want a tamper-proof supply chain, implementing blockchain is of absolute necessity.

Secure transactions made possible with blockchain

There is no denying the fact that business transactions are always susceptible to fraud and other vulnerabilities. You cannot afford to witness these vulnerabilities plaguing your company’s stability. The threat also looms over the crashing of central accounting systems during the shipment.

However, with the deployment of blockchain, you can solve a wide variety of these issues. With blockchain, your transactions in the supply chain will be secured and verifiable. Every employee involved in the supply chain operations will share the latest copy of the universal ledger.

On the other hand, the smart contracts in blockchain are the most authentic documents across all the supply chain holders. From financial audits to localized payments, you will have seamless visibility with blockchain in supply chain.

Cost optimization is a reality with blockchain

In companies, procurement has always been associated with time-consuming and strenuous processes. Moreover, if you are still using pen and paper, you can’t expect to get fair outcomes. The best way to address this challenge is by implementing blockchain in your supply chain processes.

It can help you collect data in real-time from partners and track the purchase volumes of the vendors. With blockchain, you can realize the multiple benefits of its implementation in the supply chain. Deploying blockchain can ensure the highest level of trust and security among the stakeholders.

Traceability is easier to deduce

Most shoppers will always like to have traceability and transparency in the delivery timeline. Moreover, it is common among shoppers to switch brands if they are not getting their items delivered on time. The tamper-proof feature of blockchain ensures the sanctity of data across factors like the origin of the products, real-time tracking, greater visibility, etc.

Streamlined onboarding of suppliers

The process of bringing a new supplier onboard can take up a lot of time. With the help of blockchain, you can automate the whole process of supplier onboarding. Blockchain can speed the process of supply onboarding with an immutable record of new vendor details.

Moreover, you don’t have to source vendors manually with blockchain. It can automate the whole process so that you can easily get new suppliers for your supply chain.

Ensures food safety in the supply chain

If your company manufactures food items or is associated with food ingredients, ensuring food safety is critical. You should ensure that the food products shipped should be safe for consumption. By deploying blockchain, you can make sure that no one tampers with your manufactured food items while they are in the transit.

Source materials sustainably

Nowadays, most companies are judged based on their sustainable practices. Customers are becoming more concerned about the environment in which they live. With the help of blockchain, you can provide traceability and transparency in the sourcing of raw materials. It allows your company to ensure that the products are sustainably and ethically sourced.

Optimizes financing in supply chain

When the inventory, information, and financial flows are shared among companies and the stakeholders of your supply chain, you will get good visibility. You should always consider the notion of financing when the context is streamlining financing with blockchain.

Banks that offer loans and financing solutions always have the ability to track the transactions of their customers. Similarly, with blockchain, it is possible to track the transactions in the supply chain of your company. You will be able to a greater amount of conflict by implementing the right blockchain-based solutions.

Companies that leverage blockchain are the ones who will have an upper hand in this competitive world. To stay one step ahead of your users, you should implement blockchain-based solutions in your supply chain. Improved supply chain operations can help your company gain traction. It will also be a lot easier to get customers by deploying the latest blockchain-based solutions.

Author bio:

Prashant Pujara operates as the CEO of MultiQoS Technologies, a well-known mobile and web app development company with an emphasis on creating apps for iOS and Android. possesses more than 10 years of experience in software development, with a focus on making mobile applications for all main platforms, including iOS and Android.