The outbreak of COVID -19 had a massive impact on the economy as the supply chain came to a standstill, leading to a surge in demand for eCommerce. As a result, many companies and industries around the world were forced to change the way they deliver and manage goods, products, and services. Technologies such as artificial intelligence (AI) and machine learning came into play to change the supply chain model, which eventually became the driving force behind the emergence of blockchain technology.
Managing the flow of products from production to delivery by tracking the various related activities is known as supply chain management (SCM). In SCM, blockchain technology is used to keep transaction details, documents, information, and assets confidential as it consists of a distributed and decentralized ledger. It is a simple way to transfer information in a fully automated and secure manner without involving any third party. Blockchain has proven to be efficient in circumventing the risks associated with supply chain management, such as lack of information security, counterfeiting risks, data loss, operational and transactional risks, and human error.
To manage the flow of a particular product, a request is made to authenticate a new transaction, which is then sent to all computers on the blockchain network. Once all users on the network confirm the transaction, the block is added to the chain with other transactions. So, by using blockchain in SCM, companies can keep records of their delivered products, as everything is immutably documented in blocks. The distributed ledger in the blockchain provides the parties involved in the transaction with a complete history that they can use to locate their products.
A supply chain is not a straight and continuous chain that flows unimpeded. It is an intricate network of manufacturers, suppliers, distributors, retailers, and suppliers working in concert with each other. The list of benefits below shows why blockchain is a boon for the supply chain management.
Blockchain promotes trustworthy transparency between all partners, and digitally capturing accurate data improves accountability and trust. Because of its immutability, certifications and other legal documents can be transparently verified.
With smart contracts, blockchain technology can automate procedures, leading to higher levels of efficiency and accuracy.
The private key or digital signature encrypts the details before a transaction is initiated. This increases security and makes it invulnerable to hackers.
In the food industry, blockchain is helpful in creating a decentralized ecosystem for food supply. It improves the ability to track food shipments from production to delivery in real-time. Not only do manufacturers and suppliers benefit from this technology, but consumers do as well by scanning the codes from QR. This way, they can learn more about the food, such as where it came from.
In the mining supply chain, you can track where rocks and raw materials such as minerals and metals come from and under what conditions they are mined. The mining supply chain involves documenting invoices and certificates, which can be done efficiently with blockchain. Tracking the authenticity of gemstones as they change hands ensures the confidence of consumers in the product
In the pharmaceutical supply chain, Blockchain ensures the distribution of drugs with good quality and correct manufacturing data. It also helps prevent expired products from being shipped. Blockchain can eliminate the time-consuming paperwork required to enforce laws in the pharmaceutical supply chain and ensure that drugs meet the standards and regulations of the manufacturing process.
Unlike other supply chains, the oil and gas supply chain are a bit more extensive and complicated because it involves multiple players and companies. It requires intermediaries to verify all transactions, which makes it more vulnerable to cyberattacks and hacking. Integrating data into the blockchain helps avoid transactional issues such as double spending and duplicity. Supply chains like oil and gas require long and complex contracts, which can be simplified using smart contracts.
Supply chain finance, also known as SCF, is the technique and process used in financial companies to manage the flow of money. Blockchain ensures inclusivity and authenticity by preventing information from being falsified. In financial markets, it helps make timely payments to suppliers on behalf of buyers. Small and medium-sized enterprises benefit greatly from this.
Although blockchain is not a new technology, more and more use cases for blockchain in supply chain management are becoming known in recent days, which is changing how the supply chain works. Technical experts are finding out where this technology can be used to ensure the security and efficiency of their businesses. Businesses and industries will have a high demand for developers who can design the Blockchain network and smart contracts in a customized way.
According to global records, the blockchain supply chain is expected to grow at a rate of 53.2% in 2026. For those looking to grow their supply chain business, Maticz comes to the rescue. Maticz is a top-rated blockchain development company that offers the best and most user-friendly supply chain management software. Whether it is a startup or an established business, we help integrate reliable and decentralized blockchain solutions to automate their business. Our approach starts with understanding the client's requirements and needs to build trust and transparency.
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