As we all know, the supply chain is the process of production and distribution of goods and has been around since the industrial revolution. There have been some issues in the past 50 years however, it seems as if nothing has been done in an attempt to improve its efficiency.
Blockchain was the big thing in 2018, after Bitcoin’s meteoric rise in late 2017, Blockchain and Crypto became a major talking point around the world and it’s not difficult to see why. Blockchain in the technology behind Bitcoin and other altcoins, and it’s a fairly simple concept. It records movement and change of transactions and is controlled over a bunch of systems which link to a peer-to-peer network.
Blockchain can bring some incredible advantages to the Supply Chain. It can act as a ledger which can record any changes in possession or ownership of goods, as well as the movements from one end of the supply chain to the other which incredible accuracy. This would be huge for businesses as it can improve the understanding of the value, most reasonable cost and can improve the traceability across the world. Improving the traceability will give companies a better look into the environmental impact of their products and it will also allow customers to fully trace exactly where their order is.
Blockchain also allows for the use of smart contracts, these smart contracts are triggered when a certain action occurs. This can remove the use for intermediaries such as freight brokers, making the whole process cheaper as freight brokers tend to charge high prices. Blockchain can also assist with stock/ inventory management, and can help reduce costs for data errors and delays.
It really does have the ability to improve the supply chain for the better. Businesses who rely on the supply chain for the production and distribution of their goods should definitely consider adopting the technology, even if it may seem complicated, the benefits greatly outweigh the downsides and in the long run it aims to make a safer and more secure economy and attempt to prevent questionable practises.