Implementation of Blockchain in Supply Chain

Being a Supply chain enthsiats I always loved to explore different aspects of new technology of innovation in Manufacturing and the end to end supply chain domain. Recently I have been getting the question "What can be the effect of Blockchain in SCM or Manufacturing", "How Blockchain can shape the future of Supply Chain industry" and likewise

I will try to pen down my thought in a short and simple manner in a layman's way (truely speaking - my only way) in a 3 minutes read. The possible use cases where we can focus to understand how Manufacturing SCM can be disrupted are:

Advance optimization/ negotiation: Smart contracts can be created in such a way so that each participant node negotiates between each other to optimize the existing cost or route or delivery time. So real time negotiation r optimization will actually become a reality. I think this is going to be the favourite area of SCM / logistics optimization area in future

Smart contracts: No step by step tracking (from supplier's supplier to end life user) due to smart contract (consider ethereum or likewise blockchain). It can replaces expensive, manual effort (Manual means not only paper but current different levels ERP systems too) with automated, dynamic tracking of supply chains.

Trust-less demand supply network: This was long pending. Lack of trust creates need of third party like guarantor, banks etc. Blockchain crates trust-less environment (example: Proof of work mechanism (consider bitcoin or likewise blockchain)) where supplier and receiver both trusts the chain, not each other. So that removes guarantor from picture. This will change overseas, inter-country shipping totally (like bill of lading will not be required anymore)

Transparent audit: Step by step digital audit which is almost non existent in current manufacturing environment. Example: Process of procuring a bottle of oil from Indonesia, processed in Bangladesh once registered in blockchain can not be tampered later to show that it was prepared in US or any other developing countries to charge premium pricing

Intra-organization resource optimization: Large conglomerates will eventually go for chain of blockchains. For example- an over-archaic chain of different sub blockchains of sourcing, procurement, material testing, planning, production, logistics, order processing etc. So it will be kind of blockchain of blockchains. This will surely help to gain never before experienced control over all gamuts of factory / field production, manufacturing.

No need of supplier reputation: Terms like supplier reputation, supplier integrity may go for a toss. So that can create a level playing field for all supplying parties irrespective of degree of control over insider information etc.

These are just a few use cases of many possible to say. This needs time to focus, find and understand the actual benefit. I will try to go into deeper levels with a bit technical of each case mentioned above in subsequent posts (or will update this post)

Let me know how do you see blockchain shaping up the manufacturing and Supply chain domain. What is your thought on this