Supply Chain Management was a tedious and complex process. It involved manual intervention at every stage to make sure that products and services met the needs of the users. The administration was expensive. There was a lot of data with costly storage systems. The advent of technology eased some of the complexities and increased revenues.
Then the blockchain revolution came as a magical solution. The blockchain technology seemed as if it was specially designed for supply chain management. Blockchain for supply chain became a game changer for the industry.
A Brief about Blockchain Technology
Blockchain is essentially a digital ledger. It was created around the year 1991 for securing documents. Blockchain Technology uses a digital cryptographic system to provide automated transactions, file storage, and tracking. In the year 2009, Satoshi Nakamoto pioneered the use of blockchain technology. He revolutionized the financial world with the digital currency called Bitcoin.
Soon blockchain development found its way into many applications outside the financial world. Other industries were eager to see how the use of blockchain could be used to their benefit. Any Blockchain Development Company would make sure that there was a solution for any industry that approached them. The Logistics Industry also wanted to apply the blockchain technology benefits to its operational procedures. The result of using blockchain for supply chain had a tremendous impact on its operations and profits.
Approximately 65% of business leaders, like you have embraced blockchain technology as a catalyst for their expansion.
Impacting Factors of Blockchain For Supply Chain Management
Let us look at some of the major impacts of blockchain in supply chain management. If you are in the business of supply chain management, you can experience all these impacts firsthand. We at GrapesTech Solutions can implement blockchain logistics in your operations.
Assured Transparency
Transparency leads to trust. Trust leads to credibility. Credibility builds lasting relationships and reputations. It holds the power to make or break a company. A Blockchain uses digital cryptography to provide assured and secure transparency to Supply Chain Management. This allows secure tracking of transactions and activities. This transparency allows for building trust, credibility, and customer satisfaction.
Accurate Visibility
A supply chain blockchain aims to give accurate visibility to customers. It allows tracking of products or services. The tracking is seamless through the entire process from the warehouse to the drop location. This visibility is good for the supply chain company too. Shortcomings can be reviewed gaps in the process can be corrected. Such identification of issues and corrective action ensures confirmed customer satisfaction in the future.
Cost Reduction
A Supply Chain Company, like any other corporation, aims to reduce existing costs to increase profitability. A blockchain is a digitized ledger that has detailed end-to-end encrypted links. This allows for a paperless environment. The digital chain allows accurate tracking of information records. The administrative cost of storage is reduced. The money saved can be utilized in other areas. Supply Chain Companies have experienced marked improvement in cost reduction with the use of blockchain technology.
Information Security
Protecting internal information is vital for any Company. A lapse in security could lead to leaks of sensitive information. Blockchain for supply chain eliminates any security lapses in the system. Information stored in a blockchain cannot be accessed without proper approvals. Moreover, this information cannot be altered. Any breach can be accurately traced. The hack-proof system prevents all kinds of fraud, theft, and unauthorized activities.
Improved Quality
Logistics blockchain reduces the chances of human errors in areas like transactions, storage, tracking delivery, etc. Reduction in human errors means improved quality deliverables. Mishaps can be easily traced. Faults in the supply chain can be accurately corrected. Such issues can be permanently averted. Customer grievances can be resolved faster. All these elements contribute to improved quality.
Higher Operational Speed
Blockchain management has greatly increased the operational speed of Supply Chain Companies. Legacy systems, dependence on meticulous paperwork made the supply chain a cumbersome process. The time-consuming process resulted in reduced profitability. The Use of blockchain resulted in the elimination of all laborious tasks and paperwork. It also improved the speed and accuracy of the tracking process resulting in enhanced customer experience.
Competitive Edge
The supply chain industry is highly competitive. Any Supply Chain Company needs to have an edge over its competitors. Blockchain logistics provides a definite technological advantage to its users. The efficiency of the system is proven by a marked improvement in speed, quality, and profitability.
Conclusion
In a competitive supply chain industry, it is crucial to implement blockchain application development. As a supply chain company, it is imperative to embrace technology. GrapesTech Solutions is a leading blockchain developer in India. They have experienced developers who can help develop a robust supply chain technology for you.
FAQ’s
One blockchain developer may suggest one tool while another developer may advise a different solution. With several tools available, it can be a tough choice. The best course of action is to approach a reputed blockchain development company. They will access your needs and design a tailor-made blockchain management system that suits your supply chain.
If you are looking to ensure the security of information in your supply chain, it is better to primarily implement blockchain for supply chain. AI can be introduced later, if needed, for enhanced detection and response to threats.
The challenge in implementing an efficient logistic blockchain is a detailed study of your supply chain needs. Each industry has different sets of standards and concerns. Hence it is crucial to employ a competent blockchain development company that can design the best solution for the complex needs of supply chain management.
Blockchain provides a secure and transparent flow and accessibility of information. Its unique feature is the cryptography and linked chains that provide a history of all events in a flow.
