Blockchain Use Cases In Supply Chain Management

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Introduction

As at now we all should know when and why the blockchain technology was developed, it was developed in the Year 2008, its initial purpose and aim was to support cryptocurrencies however, now it has found a way to support and transform different or various industries and sectors in the world, including supply chain management.

Basically, the blockchain's decentralized nature and the fact that it operates on an immutable ledger system helps facilitate and offer to its users increased transaction transparency, security, and efficiency therefore as a result it has been able to address many of the challenges facing the supply chains.

Here, in this post of mine I will be explaining and discussing some of the significant and transformative use cases of the blockchain technology in the different processes that are involved in supply chain management.

• In Improving Supply Transparency

When blockchain technology is used or applied to supply chain processes, it enhances and improves transparency and traceability of products in doing so, address the issue which the supply chain usually or normally suffers from which makes it difficult to track or trace products from the different stages as it moves from manufacturing to delivery.

Basically, the blockchain's immutable ledger allows for every transaction conducted, and movement of goods to be recorded in real time unalterable and easily accessible to all stakeholders as a result, industries or companies can trace and track the movement of products every part of the way from the factory to its consumers.

• In Inventory Management

Another significant use case of the blockchain in the supply chain management process that has to do with management of inventory, an effective inventory management is important to help to minimize the costs of production and meeting up with customer demands.

The blockchain technology can enhance inventory management by basically providing a record which is in real time and is readily visible and accessible, with this producing factories can take advantage of the blockchain by using it to automatically record inventory data thereby ensuring accuracy.

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Additionally, this visibility helps ensure accountability and optimize the management of inventory by far when compared to an inventory done without leveraging the blockchain technology with this, retailers can always know the level of goods available to their supplier as a result improving replenishment decisions and reducing time wastage.

• In Regulatory Compliance

Another important and significant use case of the blockchain in the supply chain management is in regulatory compliance, this is aspect is critical and important to supply chain management, particularly in the supply of pharmaceutical products, food, and electronics.

With the use and application of blockchain technology particularly leveraging it's transparent nature, industries can possess and provide an immutable ledger with records of all transactions and movements of products within the supply chain, this record can be improved easily so as to comply with regulatory requirements.

Additionally, the enhanced transparency that blockchain offers and provides helps to reduce the risk of fraud and mitigate potential legal and financial risks, blockchain can basically help to ensure compliance with regulations, it does this by tracking every transaction involving the products.

• In Counterfeit Preventive Measures

Another significant and important use case or possible application of the blockchain in supply chain is when it comes to mitigating and combating the risk of counterfeit products which over the years have lead to financial losses and health or safety risks.

However, blockchain can help to facilitate an end to this issue of counterfeiting by basically providing a secure and transparent way to verify the authenticity of products, one way can be by using the recorded movement of products on the supply chain to verify its origin and authenticity.

This is particularly useful in goods that are prone to high counterfeiting all over the world especially in my country Nigeria, produts like electronics, and pharmaceutics as a result ensuring that they are authentic.

Conclusion

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Over the course of many years we have come to understand and appreciate the blockchain technology's transformative and innovative features and mechanisms which are practically applicable in many sectors, one of which is these sectors in which the blockchain is applicable in, is the supply chain management.

Owing to the blockchain innovative features such as it's decentralized and immutable nature, the blockchain is able to ensure that transactions on the supply chain are transparent and secure.