The blockchain for supply chain is going to be the standard in the industry in the next five years. We've already seen the adoption of the blockchain technology with our supply chain customer, and this article focuses on the advantages that the blockchain has on the supply chain industry.
Supply chain, as a process in any major company, encourages visibility and efficiency. When done right, it can be one of the smoothest and the most efficient processes in the entire manufacturing workflow, which can save a lot of time for the manufacturers as well as the customers.
Here are the six major advantages the blockchain brings to the supply chain industry:
- Reduce or eliminate fraud in the supply chain process; Since the blockchain does not allow any tampered information to enter into the system, it is a given fact that any fraudulent activity will be explicitly visible in the blockchain. This eliminates the entire concept of product counterfeiting in the supply chain flow.
- Increase trust among parties; Trust is the single biggest factor that can make or break a business. The blockchain technology is all about trust. Learn more here.
- Reduce paperwork unto 15%; With big players like MAERSK implementing Hyperledger based blockchain to cut down their paperwork by 15%. The blockchain helps companies by validating every single transaction with tight consensus algorithms that do not allow information tampering and ensures validity.
- Improve inventory management; With the blockchain, which relies on Distributed Ledger Technology (DLT), the need to manage your inventory is much easier, since everyone holds a copy of the information.
- Identify issues faster; With the blockchain in place for your supply chain, whenever there is a change in the information that was not intended to happen, the tight smart contracts protect these from happening. If there's something wrong with an inventory item, it would show up in the chain of custody.
- Security is everything; Information that is exchanged in any supply chain process is confidential. With information like the invoices, contracts and other confidential information floating around, the blockchain helps companies protect this information with the best cryptography techniques the industry has seen today.
The blockchain is here to stay. Some people call it the new Internet. And we believe so. In the next five years, we believe that the blockchain would be at the center of many industries in managing information and trust.
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