Managing supply chain in today’s age is extraordinarily difficult and complex. The supply chain can comprise of hundreds of stages, multiple locations (local and international), a plethora of payments and invoices, may have different authorities involved from the public and private sectors, and take a hefty amount of time to complete. This complexity and need for transparency in the current supply chain model required Blockchain to bring some transformations to the supply chain and logistics industry.
To discuss it in a clear and easy manner, let’s break down the current supply chain model to determine the impact Blockchain has created on this highly productive industry.
Current Supply Chain Model
Supply chain and logistics is one industry where you can easily find innovations over the course of history. There have been minor shifts to major overhauling over the years such as the shift to haul freight via trucks rather than railways and massive use of computers. With manufacturing being globalized due to more countries taking interest in increasing their production, the supply chain has become more complex than ever giving rise to discrepancies in the procedures and making the stakeholders indifferent about the workflow.
It is because of the current system that our customers are not able to know the real value of the products. Similarly, it has become nearly impossible to investigate supply chains and logistics whenever some illegal activity takes place. As a result, the black economy has prevailed and when the authorities were nearly hopeless about coping with the scenario, Blockchain seems to have provided the best solution everybody was looking for.
How Blockchain Helped Supply Chains & Logistics
It does not need to be told that Blockchain has essentially created for cryptocurrency Bitcoin. However, this digital ledger has many applications and can be used for a number of more functions in the likes of agreements, contracts, tracking, payments, management, and a lot others.
Every transaction, be it payment or others, is recorded on a block and transferred to all the computers around the world making it highly transparent. The level of transparency is maintained because all the blocks link to the one before it and after it in the form of a chain, thus the name Blockchain becomes justifiable. The beauty of Blockchain is that there is no central authority overseeing it. There are thousands of users who validate the transactions taking place over this technology and this is the reason why it is highly scalable and efficient.
Through this increased transparency in the process, supply chains have become less complex, payments have become secure, tracking is simplified, and significant help is received to control the black economy.
It wouldn’t be wrong to say that all the things that are necessary for reliability and integrity in a supply chain and logistics transaction are provided by Blockchain. The consensus it provides to the process of transactions is exemplary because all the parties involved have the same version of the ledger. The validating parties validate the ownership of the assets on the technology and the best part, no information can be altered in this technology making it the most secure way ever possible.
As discussed above, the major function of this technology has been payments, the stakeholders can now easily send and receive payments from across the world without the fear of losing money or frauds. This transparency is also important for the trust of customers because they should know that the company is taking all the steps to maintain environmental stewardship and sustainable manufacturing.
Blockchain & ITspresso
ITspresso is a leading company offering Blockchain consultation services and solutions relating to multiple industries. Our experts share their knowledge and experience to make sure that this highly innovative and secure technology makes your company the go-to choice for consumers for a specific product or a service. From consultation to implementation and solutions, we are capable of providing it all with ease and grace maintaining full transparency in the workflow, just like the technology itself to make sure that nothing goes wrong and you are able to achieve the desired goals. For more information, you can reach out to us via email at [email protected] or contact us.