By Raj Bajoria
With regard to the acceptance and diffusion of innovative technologies, the supply chain is essential. The smooth exchange of information and goods between multiple stakeholders is made possible by logistics, a vital link in the supply chain. With regard to this, new technologies like blockchain have drawn a lot of attention due to their potential to change and enhance supply chain processes. Blockchain technology is a distributed, decentralised digital ledger that enables many parties to securely and openly record and verify transactions. It appeals to supply chain applications due to a number of features.
The supply chain is a crucial source of information that supports prospective emerging technologies, and in this ecosystem, logistics are seen as an intermediary for efficiently distributing cutting-edge solutions. Given how the supply chain collects and uses a lot of data, the transmission of reliable information around supply networks at speeds close to real-time is crucial. By replacing slow, laborious processes that still rely on paper with digitised technologies, blockchain quickens the process while reducing human error.
Improving Supply Chains using Blockchain Technology
The majority of supply chains in use today continue to be managed using an antiquated, conventional methodology. However, a change is imminent. Many business executives in the supply chain management industry are experimenting with blockchain technology in an effort to find a solution that can solve some of the issues they are currently facing. The differential characteristics of it include transparency and enhanced security. Stakeholders can have real-time visibility into the flow of goods, confirm the legitimacy of products, and guarantee compliance with rules by recording and certifying transactions on a blockchain.
Blockchain adoption is gaining momentum as the sector keeps developing quickly. According to studies, it can improve supply chain management’s transparency, traceability, efficiency, and information security. The analysis suggests that this area lacks much empirical research. There is therefore a huge future research opportunity in integrating blockchain into the actual supply chain.
Greater traceability, which is crucial in supply chain management, is made possible by blockchain. It enables the recording of every transaction and movement of products, resulting in the creation of an auditable and tamper-proof history of the route taken by the product. In sectors like food and pharmaceuticals where traceability is essential, this capability can be especially helpful. Supply chain participants can swiftly locate the source of defective or contaminated goods by utilising blockchain and then take the necessary action, such as targeted recalls. Furthermore, the capacity of blockchain in supply chains to restrict the number of known players with access to their company operations reduces the danger of malevolent actors while also promoting improved performance.
Vision
Blockchain technology has the ability to completely transform supply chain operations, according to practitioners. The use of blockchain in fields like inventory management, logistics optimisation, tracking, and supplier management has been investigated in several research studies and real-world implementations. However, it is crucial to remember that while blockchain has a lot of potential, it is not a universally applicable solution. Scalability, interoperability, cost, and legal frameworks are just a few of the aspects that must be carefully taken into account before implementing blockchain in supply chains. To maximise the advantages of blockchain technology, cooperation and standardisation among supply chain participants are essential.
Conclusion
In general, blockchain is a new technology with the potential to significantly enhance supply chain management. Its traits of transparency, traceability, and improved security can assist in addressing a number of issues faced by the supply chain ecosystem, ultimately resulting in supply chains that are more effective, resilient, and reliable. By creating trust models amongst logistics management players (manufacturers, distributors, suppliers, etc.), blockchain has the potential to offer economic value to address important logistics management challenges. Emerging technologies like blockchain have drawn a lot of attention in this area because of their potential to revolutionise and enhance supply chain processes.
The author is COO, Selfex
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Reportedly, blockchain adoption is gaining momentum as the sector keeps developing quickly
