Blockchain in the Supply Chain: A New Era of Transparency and Trust

Blockchain technology is a technology that is rapidly creating disruption in various industries, supply chain being among them. Through increased transparency and establishing the issue of trust, blockchain provides supreme value to organizations, i.e. they reduce cost while facilitating business.

So here in this blog, we are going to explain about the supply chain and how the blockchain works and the benefits that are coming out of it. How it is helping in overcoming the challenges. And how 75Way Technologies can help you with blockchain development solutions.

In a bid to demystify the concept of Blockchain in Supply Chain, this blog aims to answer the following questions;
 

What is blockchain?

Blockchain is an innovative distributed database that maintains records of transaction in a network of computers. Transaction information is grouped into a block and these blocks are called a chain, thus, this is how the name is blockchain The important feature of the blockchain is that it offers secure, transparent and resistant to forgery records.
 

Building Trust Through Immutable Records:

This is another of the areas where blockchain is relatively strong: once data is recorded in the blockchain it cannot be altered in any way. It also creates credibility amongst all supply chain stakeholders because users can be assured that the information presented to them is correct.
 

How Blockchain Enhances Transparency:

Blockchain makes it possible for all the supply chain associates to have an unaltered view and access to data. This makes it clear for any of the four parties to know at what stage a product is, which hands it has been to and where it is headed. It increases the visibility to help control errors and to improve confidence among people.
 

Key Features of Blockchain for Supply Chains:

Decentralization: Data is uploaded on a network hence minimising chances of a single entity compromising the data.

Security: This is important since data is protected from being altered through advanced cryptography.

Transparency: The displays ensure that all the participants are able to see the same thing and confirm it.

Traceability: The use of digital ledger technology implies that there is a paper trail of a certain product and in this case, blockchain gives an unwritten but clear record of the product.
 

Benefits of Blockchain Implementation
 

Improving Supplier Accountability:

In blockchain, there is a transparency of every movement of both money and the goods and all are visible to all the parties. This accountability means that suppliers perform as required and meet certain agreed on benchmarks.

Enhancing Product Safety and Recalls:

By adopting the blockchain system, the journey of a particular product from a manufacturing company to the consumer can be recorded. In case of a safety concern, the business is well placed to pinpoint and/or pull out the related products from the market thus reducing risks to the consumers.
 

Streamlining Documentation Processes:

Documentation is another area that is made automatic by blockchain eliminating the need for paper work and hand writing. It’s more efficient as it saves time and we are less likely to make a mistake.
 

Reducing Fraud and Counterfeiting:

Since the block chain records are compiled in a chain, changes or forgery of information is almost impossible. This feature is useful in minimising cases of fake products in the market and hence increases the credibility of the products.
 

Real-Time Tracking and Tracing:

By tracking products through the use of block chain people are able to keep track of their products and also to solve any problems that might be arising.
 

Overcoming Supply Chain Challenges
 

Reducing Costs and Inefficiencies:

Blockchain brings about efficiency since it lessens the assistance of middlemen, form filling, and other procedures. These efficiencies can mean actual dollar savings, that is, cost reductions on the organization’s bottom line.
 

Enhancing Collaboration Among Stakeholders:

By using blockchain all the relevant stakeholders are privy to the same information making it easier to have better communication than otherwise. It also makes it easy to solve any dispute since both parties can easily view each other’s account balances.
 

Mitigating Supply Chain Disruptions:

When integrated with supply chain, blockchain enhances real time tracking which aids in proactively identifying areas that may cause delay thus minimizing interruptions.
 

Addressing Inventory Management Issues:

Real time information is made available by the block chain solution about the status of the inventory, this makes it easier to order for stocks and avoid excess or inadequate stocks.
 

How to apply Blockchain in Your Supply Chain
 

Training and Onboarding Stakeholders:

Implementation of blockchain technology means that all stakeholders would have to be put through training so that they can comprehend how the technology works as well as how they can go about applying them. The integration process is most effective when appropriate steps have been followed in the on-boarding process.
 

Integrating with Existing Systems:

Blockchain can be adopted as an add-on to your existing systems so that there is no disruption of the existing setup while your operations gain improvement because of the inclusion of the blockchain aspect..

Choosing the Right Blockchain Platform:
 

It is important to choose the right platform that is going to be used for building the blockchain. Aspects such as scalability, security and usability should be taken into consideration to ensure that it is suitable to be used in your company.

Assessing Readiness and Potential Impact:

Before applying blockchain technologies in your value chain, it is crucial to understand your organization’s fitness level and blockchain’s implications to your supply chain. It also assists in The identification of any barriers to implementation and guarantee a successful implementation process.
 

Future Trends and Innovations
 

Scaling Blockchain for Global Supply Chains:

Blockchain is still in the development stage and as it progresses, problems of scalability will be resolved thus can be used to support greater supply chain operations. This scalability will enable it to be useful in many sectors as shown below:
 

Cross-Industry Standardization Efforts:

When the protocol is standardised across multiple industries it will allow for easy integration of the technology for supply chains and improve the efficiency of blockchain.
 

AI and IoT Integration with Blockchain:

The combination of AI and IoT with blockchain in the supply chain will bring better understanding and improved control and automation of them, resulting in improved Supply Chain.
 

Smart Contracts for Automated Processes:

Smart contracts are digital contracts built into codes that have the ability to execute the contracts automatically when stipulated conditions have been met. They can be used to streamline procurements in a given supply chain, which means that many steps can be done away with.
 

How exactly does 75Way Technologies stand ready to assist you with all things in blockchain?

Here at 75Way Technologies, we focus on assisting companies take advantage of blockchain technology in supply chain management. We have advisors that can assist you from the moment you determine that you need blockchain solutions and through installation and integration. Whether you need to increase clarity, decrease your expenses or increase safety, we have the knowledge that can assist you to achieve these objectives.
 

Conclusion

The Blockchain is becoming a key enabler of supply chain and is set to deliver new levels of transparency, trust, and efficiency. When businesses are planning for the future, accepting blockchain as part of their supply chain model will be mandatory to stay relevant in the marketplace. When you have 75Way Technologies for your company, you will be able to use the capability of blockchain to shift your supply chain and business performance to the next level.