Four Ways Blockchain Is Transforming Supply Chain Management

Simple in theory but extremely tedious in practice, supply chain and logistics operations are one of the most time-consuming tasks for most businesses. The interdependence of goods, services, and information in a supply chain often entails detailed paperwork and multifold information that often becomes a breeding ground for fraud and corruption.

The key elements of an efficient supply chain are transparency and accessibility, something that is often lacking in the current infrastructure of things. As a business grows, its supply chain network becomes more and more inefficient and vulnerable. Damages and delays become part of the supply chain and this impacts scalability of the business in the long-term.

Blockchain is revolutionising supply chain management on a local as well as a global scale by making it impenetrable, transparent, reliable, scalable, and secure whilst offering real-time updates and status. Here are 4 areas where a blockchain enabled supply chain can make all the difference:

Record Keeping & Provenance Tracking

Using embedded sensors and RFID tags, product information can be easily accessed in a blockchain enabled supply chain management software. The blockchain system will record the entire lifecycle of a product’s transactions, right from its source to all the stakeholders and touch points involved, which can be tracked and reviewed with complete transparency at any point in time.

Scalability & Security

Blockchain, essentially a digital ledger recording all transactions and movements, also allows for unlimited participants accessing from multiple touch points.This means that the supply chain can grow tenfold but still maintain its effectiveness. By decentralising the infrastructure, blockchain ensures that no one person can change the information without all the participants validating the change.

Time & Cost Reductions

Middlemen and redundant processes often tamper with the efficiency of the supply chain network. With the application of blockchain, extra costs in the system, time delays, duplicity, and financial loss at the hand of human errors will be replaced by an accurate and shared set of data. Better tracking and management of resources will lead to less standby inventory, ultimately resulting in substantial cost reduction.

Establishing Trust

The transparency of the entire supply chain confirms the origin, quality, and processing of the product, thereby building trust for both sides – the supplier as well as the consumer.

Through a blockchain enabled supply chain, suppliers can directly cater to domestic as well as international markets through secure and seamless transactions using smart contracts. By integrating delivery and payment through automatic invoicing and payments, blockchain closes the payment gap between customers and suppliers, thereby creating a secure and trustworthy global marketplace.

While blockchain is revolutionising many industries, its contribution to the complex supply chain of the agriculture sector is vital. Growers, manufacturers, distributors, consumers, retailers are all beneficiaries of a blockchain enabled supply chain. Through end-to-end transparency, a blockchain ecosystem ensures fair payments for the grower, exact knowledge of the origin of their food for the consumer, and the legitimacy of a retailer’s purchase.

As such, AgriChain’s seamless deployment of blockchain into simple-to-use mobile and web software solutions aims to transform the real-world agricultural supply chain by improving productivity, increasing visibility, managing stocks, automating freight orders, and eliminating manual paperwork.

Related tags: Logistics Software