Benefits Of Blockchain In Supply Chain Security And How Will Change The Future Of Supply Chain
The supply chain is the backbone of many industries, including manufacturing, retail, and logistics. However, traditional supply chain systems are often plagued by issues such as lack of transparency, inefficiency, fraud, and counterfeiting. Blockchain technology has the potential to address these challenges and enhance supply chain security in several ways. In this article, we will explore how blockchain in supply chain security and how it will change the face of supply chain in the future.
Top 7 ways Blockchain in supply chain is helping:
- Improved Traceability
One of the primary benefits of blockchain technology in the supply chain is improved traceability. Blockchain can create a tamper-proof digital ledger that records every step in the supply chain. This means that every transaction, from raw material sourcing to product delivery, can be tracked and traced. This can help businesses to identify the source of any issues that may arise in the supply chain and take corrective action quickly.
For example, Walmart, one of the world’s largest retailers, has implemented a blockchain-based system to track the supply chain of their fresh produce. This system enables Walmart to trace the origin of a product within seconds, which has helped them to identify and remove contaminated produce from their stores quickly.
- Enhanced Transparency
Another benefit of blockchain technology in the supply chain is enhanced transparency. The decentralized nature of blockchain means that all participants in the supply chain have access to the same information. This can help to reduce information asymmetry and increase trust between participants.
- Fraud Prevention
Blockchain technology can also help to prevent fraud in the supply chain. The immutable nature of the blockchain ledger means that once a transaction has been recorded, it cannot be altered. This makes it more difficult for bad actors to commit fraud, such as counterfeiting or falsifying documents.
- Increased Efficiency
Blockchain technology can also increase the efficiency of the supply chain by automating many of the processes involved in the supply chain. Smart contracts, for example, can be used to execute transactions when certain conditions are met automatically. This can help reduce the time and cost of the supply chain.
- Secure Data Sharing
Another benefit of blockchain technology in the supply chain is secure data sharing. Blockchain can be used to create a secure and decentralized platform for sharing data between participants in the supply chain. This can help to reduce the risk of data breaches and ensure that sensitive information is only shared with authorized parties.
- Better Inventory Management
Blockchain technology can also improve inventory management in the supply chain. By creating a real-time view of inventory levels and movements, businesses can optimize their inventory management processes, reducing the risk of overstocking or stockouts.
- Reduced Costs
Finally, blockchain technology can help reduce the supply chain’s cost. By increasing efficiency and reducing fraud, businesses can save money on the cost of goods and services.
Also, read – Top 3 Advantages Of Blockchain As Supply Chain Command
Top 3 Blockchain in supply chain case study that changed the course
Here are three case studies of blockchain technology being used to enhance supply chain security and efficiency:
- Walmart’s Food Traceability System
In 2018, Walmart announced that it had developed a blockchain-based system for tracking food products from farm to store. The system, which was developed in partnership with IBM, allows Walmart to quickly trace the source of contaminated food products in the event of a food safety scare. The system is also used to improve supply chain efficiency by providing real-time data on product shipments.
/1 Walmart Canada
They launched a blockchain project in 2020 due to the high rate of paying supplier invoices.
The results were INSANE.
They went from a 70% error rate to ~1% in no time.
And Here’s another one… pic.twitter.com/5zAWui8o7G
— Eni 🦇 (@0x_eni) April 24, 2023
- Maersk’s TradeLens Platform
Maersk, the world’s largest container shipping company, developed a blockchain-based platform called TradeLens to improve supply chain efficiency and security. The platform, which was developed in partnership with IBM, provides real-time data on shipments and reduces the need for manual paperwork. The system has been adopted by numerous shipping companies and logistics providers, and is expected to significantly improve supply chain efficiency.
- Everledger’s Diamond Traceability System
Everledger, a blockchain startup, developed a system for tracking the origin and ownership of diamonds using blockchain technology. The system, which is used by major diamond producers and retailers, provides greater transparency and traceability in the diamond supply chain. This helps to reduce the risk of fraud and ensure that diamonds are ethically sourced.
These case studies demonstrate the potential of blockchain technology to enhance supply chain security and efficiency. By providing greater transparency and traceability, blockchain technology can help to reduce the risk of fraud and improve the quality of products. As more businesses adopt blockchain technology in their supply chains, we can expect to see more innovative use cases and benefits.
The future of blockchain technology in supply chain management is bright. As more businesses adopt blockchain technology, we can expect to see more efficient, secure, and sustainable supply chains. The technology can potentially revolutionise how products are produced, distributed, and consumed, benefiting businesses and consumers alike. Therefore, businesses need to stay up-to-date with the latest developments in blockchain technology and explore how it can be integrated into their supply chain strategies.