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Blockchain Technology in supply chain management came up with new opportunities to maintain an active approach. “BLOCKCHAIN” the name itself is a meaning i.e. chain of block. Here the block means digital information and chain means public database. When the new information stored in block then it is added to blockchain. Supply chain management is the process of managing goods and services from businesses to customer. I think from this now you are little bit cleared about what is blockchain technology in supply chain management.
Blockchain provides access to the same information to all in the respective supply chain, potentially minimizing communication or transfer data errors. Let's see the challenges faced by supply chain without blockchain technology in supply chain management.
Many organizations never share a database, which increases the barriers to communication.
For supply chain management, it is difficult to track assets despite advanced procedures. Therefore, exploiters have the opportunity to replace the original products with counterfeit ones.
Because of keeping the data limited in organizations, every firm spends money to collect the same data individually. This increases unnecessary capital and efforts.
In supply chain management, it is difficult to assess the quality due to its length so that industries are facing major consequences.
It is difficult to understand the current needs of customers, but it is even more difficult to come up with practical solutions to deal with them.
1. Easily keep records
For the big companies, it is very hard to store and track all records because of complicated supply chains. In this case, in blockchain based supply chain management, by accessing the product information through sensors and RFID tag embedding, it is easier to keep records.
2. Reduce the cost of goods
Using blockchain in the supply chain, people can reduce the cost of moving goods. It is the big advantage and effect of blockchain in suply chain. It is necessary to believe in the complex supply chains for the smooth functioning.
3. Automate the process Every step of production is automated through the use of blockchain in supply chain management, the chances of human error are significantly reduced. Blockchain technology in the supply chain management increases accuracy and decreases miscommunications and conflicts i.e. increases delivery speed. This leads to better customer service experience and relationship.
4. Reduce the need of mediators The logistics industry always needs a mediator when working with third parties. Blockchain in supply chain fulfills this need and improves relationships by saving time and cost for organizations. It also allows working together more efficiently with the suppliers across the global supply chain.
5. Increased Security Security is the top notch priority of the businesses. Blockchain helps to secure the data throughout the global supply chain and saves from fraudsters and malpractice. Blockchain increases the reputation and credibility of businesses.
The use of blockchain in the supply chain management:
1. Live tracking
2. Fast process
3. Excellent traceability
4. Healthy customer relationships
5. High ROI
6. Enhanced trading
1. Determine of use cases
First Decide how to improve your Supply chain management and for the improvement, make a simple but descriptive case with explaining its ability than describing the technology.
2. Architecture Development
Now you need to determine the main features of the blockchain, which are necessary to achieve the goal. Ask yourself what technical measures will help you achieve your objectives, which parties are interested in the blockchain and what are their roles, responsibilities, data interests.
3. Identify the best platform to implement blockchain in supply chain
You can hire a blockchain developer if you do not understand the process or the internal development can be a great option if you have time to understand and those who already understand the process.
You can also choose BaaS - Blockchain-as-a-Service which allows you to use ready-made blockchain solutions to implement smart contracts. but in the future, it can be difficult to change service providers.
4. Development of MVP
Next, you need to write a roadmap which includes software product development, testing, refinement, and deployment to integrate blockchain in supply chain management. The first step to develop MVP - Minimum viable product. The main thing is to reduce the resources and time required for POC. If you want to go with ready blockchain solutions then no need to create MVP.
5. Test the technology
Pilot program is best way to test the path you choose take with the blockchain in the supply chain. Don't forget to expand the network tester.
Supply chain management is gaining importance in the global market and is one of the many areas that is impacted by blockchain technology. This article sheds some light on. To successfully implement blockchain technology in your supply chain management you need to keep yourself aware of the latest trends and set of technologies. If you decided to apply this technology in your supply chain management then it is important to hire the best blockchain development consultant or best blockchain development services for the best outcome for your business.