The digital world is constantly evolving, and so is the way businesses run with it. In recent years, one of the most significant changes has been the rise of blockchain technology in supply chain management.
Conventional supply chains increase costs, have lots of intermediaries, lack monitoring, are inefficient, and are not global market friendly. Blockchain can eliminate the above problems and make it hassle-free to manage your supply chains.
Blockchain is a distributed database. That means that it is not stored in one central location but rather on a network of computers. This makes it incredibly secure, as there is no single point of failure. It is impossible to tamper with the blockchain. This makes it an ideal way to store sensitive information.
Another reason blockchain is so important is that it is transparent. Every transaction on the network is visible to everyone on the web. This transparency is essential for two reasons. First, it builds trust. Secondly, it makes it difficult to commit fraud.
Supply chains are complicated. There are many different intermediaries involved, which makes things slow and inefficient. Blockchain could be used to make a supply chain more efficient by eliminating the need for these intermediaries.
Blockchain offers a secure, transparent, and tamper-proof way to store data. This makes it ideal for supply chain management, where traceability and transparency are essential.
According to statista.com, Forecasts suggest that the blockchain market will reach 39 billion U.S. dollars by 2025. It looks promising and good news to invest in blockchain technology.
So, here are the top advantages of the use of blockchain in supply chain management:
Blockchain technology provides a highly secure and transparent way to track and store data. This can help businesses avoid fraud and reduce the risks of counterfeiting and other fraudulent activities.
Blockchain technology can help businesses reduce costs and improve efficiency by automating processes and eliminating the need for intermediaries.
Blockchain technology can help businesses track the origins of products and materials and the movements of goods throughout the supply chain. This can help to improve product quality and safety, as well as reduce waste and fraud.
Blockchain technology can help businesses collaborate more effectively by providing a shared, tamper-proof database. This can help to improve communication and coordination, as well as reduce the risk of errors.
Blockchain technology is highly scalable, which means that it can be used to support many transactions. This makes it suitable for use in supply chains that involve many businesses.
Blockchain can create new revenue streams for companies by enabling them to offer new services to their customers.
Blockchain can help to improve decision making by providing access to complete and up-to-date data.