- Blockchain provides an efficient solution to track, trace, and manage the supply management system.
- Its real tracking ability makes the system more reliable and trustworthy
Let’s understand how the blockchain industry brings transparency and more visibility to the supply chain management system!
Blockchain In Supply Chain Management
Blockchain provides an efficient framework to track products in the process of supply chain management. Systems’ immutable nature ensures the visibility, transparency, and real-time traceability of products.
Moreover, a blockchain-based system solves most of the issues traditional systems are facing. The successful implementation of blockchain will solve major issues such as lack of visibility and flexibility. The system enhances quality, improves speeds, reduces dependency, and provides flexibility in the system.
How Is The Blockchain Management System Revolutionizing The System?
Blockchain systems have multiple advantages over traditional systems. Here are the three major benefits of blockchain in the system:
- Provides Flexibility in Supply Chain Management
Traditional supply chain management does have flexibility. In the supply chain, flexibility is defined as the ability to interact with and meet the demands of a wide range of customer bases. Current supply chain management systems are highly complex and don’t have the bandwidth to complete the target.
Blockchain systems solve this issue by providing real-time tracking and traceability at various stages of production. This allows organizations to control data and assist a wider range of customers within a few seconds.
- Provide More Transparency in Blockchain Management
Blockchain supply management systems come with real-time tracking and traceability. Their secured system to store and share data is a good alternative to the traditional system. One of the major issues in traditional supply chain systems is the lack of transparency and visibility. Enhanced tracking options could potentially solve this issue.
Moreover, GPS-based vehicle tracking can enhance the blockchain supply management system. Blockchain in logistics is the best possible solution to deal with such a complex system that involves vehicle tracking, location tracking and then solving customer issues.
- Builds Trust in the Supply Chain Management System
Blockchain supply chain management system transactions are time-stamped and immutable. Therefore, it’s hard to change the information once the transaction is approved by the organization or even the receiver.
In addition, blockchain is more secure, efficient, traceable, and transparent than traditional systems. The irreversible nature of the blockchain system ensures trust in the supply chain. The integration of blockchain systems in the supply chain will enhance trust.
Real-Life Use Case Of Blockchain Supply Chain Management System
DeBeers is a well-known diamond supplier. To ensure the safety and security of diamonds, they used blockchain. The company successfully developed the technology that tracks diamonds from mining until the diamond reaches customers. The system provides a secure method to track diamonds and the organization has real-time access to diamond locations.
Blockchain technology has the potential to revolutionize the supply chain. It has multiple advantages over the traditional system. Although there are several real use cases for blockchain in supply chain management systems, there are still challenges.