How Blockchain technology can mend the supply chain:A supply chain is a network of all the processes involved in the creation of a product, from the raw material to the end product. Every product has its own set of processes that it goes through to reach the state of becoming saleable. Any fault in the supply chain can disrupt the whole system. For this reason, effective supply chain management is key. After taking all the internal and external factors into consideration, proper planning and execution is done to ensure cost-effectivity and productivity.
What are the processes in the supply chain? How can Blockchain help?
Blockchain was introduced to the world with Bitcoins, a form of digital currency. Now, it has many other applications. The supply chain is a complicated and chaotic network that can benefit immensely from the solutions that blockchain provides.
- Material flow
The flow of raw materials to its final stage of production (ready for distribution) is not without flaws. Often it is a highly disorganized system with low transparency. Blockchain is an open and distributed ledger that keeps an account of all activities. This data can never be altered or removed. In addition to this, false data cannot be entered into the blockchain. With blockchain technology, the flow of materials is recorded for later reference, whenever required. Any information on the material utilized in the process is obtainable. Complete transparency and immutable records are possible with blockchain.
- Information flow
The amount of information that flows in the supply chain is immeasurable. The details of the product, the involved parties, dates, prices, payment information, and more are only a few of the many aspects to consider. Storage of this data on paper is impossible to imagine: on a computer, this data could be unintentionally lost, erased or even manipulated. Blockchain, also known as Distributed Ledger technology can store limitless information for an unlimited period, thus providing seamless and ethical flow of data.
- Finance flow
Capital is an important aspect of any business if not the foundation. In traditional systems, devoid of accountability and transparency, the flow of money should be recorded in a way that it is not vulnerable to change. Blockchain provides the supply chain with immutable transactions. It is not limited to information storage but also provides means of payment in the form of digital assets or cryptocurrencies.
Blockchain has widened its scope, being a highly versatile technology, it offers its advanced features to various industries; the supply chain being one of them. Integrate your supply chain with blockchain technology. In search of blockchain supply chain development services? Blockchain App Factory is a supply chain development company that can help you with all blockchain-based services. Give them a look!