Blockchain Supply Chain Solutions for Transparency, Traceability and Trust Blockchain technology, which was originally invented to support digital currency bitcoin’s transactions is now widely valued across the industrial sectors for its ability to publicly validate, record and distribute transactions in an immutable manner in encrypted ledgers. The distributed ledger technology can be rather used for any exchange, tracking, payments and contracts. As the transaction ledgers are encrypted, blockchain technology offers robust security compared to the traditional banking system. Distributed ledger technology (DLT) Depending upon the product, supply chain can span over hundreds of stages, multitude of invoices and payments, and can run in multiple countries and over months of time. It becomes difficult to keep track of all the moving parts of such a supply chain that often lacks transparency. It’s where something like distributed ledger technology (DLT) of blockchain can shine. Eliminating disputes with a single version of truth Chain of command is paramount for the efficient operations of a complicated supply chain that operates on international levels, and blockchain has the chain of command built in that allows it to have a positive impact on everything, ranging from warehousing to delivery and payment. The very things necessary for reliability and integrity in a supply chain are provided by blockchain. It provides consensus in transactions, as all entities in the chain have same version of the truth in ledger and hence chances of any dispute are eliminated. Members of the network can see what is happening in real time, and drill down issues to individual aspects of the blockchain. Smart contracts Smart contracts help in providing speed to blockchain, and ensure that different participants are meeting their obligations. One can track shipments based on fulfillment of smart contract terms as all the network participants can see the terms of agreement.
Providing transparency and scalability Many supply chains are already moving billions of data and transactions but they are often plagued with issues such as disparately formatted and soiled data which is hard to access and analyze when it comes to big data. For such supply chains where participants are not known or trusted, a blockchain solution can help in providing transparency, traceability and trust. Improving traceability helps in mitigating the high costs of quality problems like product recalls and reputational damage. Transforming logistics too Due to the lack of transparency and slow speed of the existing supply chains, there has been a growing interest among the business owners and marketers on how blockchain can be used to transform the supply chain and logistics industry. There is no central database or central governance in a blockchain, instead it uses a consensus verification protocol to establish trust in each block of the network. Meeting the demand of provenance The technology holds tremendous promise for supply chains, especially in the areas of product traceability and tracking, supplier payments and contracts. Increasing regulatory and consumer demand for provenance information is driving change in supply chains. While deciding about a solution for supply chain, a company must first decide on the type of blockchain it would need to build. Getting in touch with supply chain blockchain consultants Group50 is a leading blockchain consultancy that provides specialized supply chain blockchain consulting to the SMBs in need of blockchain integration in their supply chain. Their blockchain supply chain consultants have extensive expertise in developing custom supply chain block chain solutions for the business in various sectors. Get in touch with Group50 blockchain consulting to know how their plug-n-play Scioebc blockchain solution can help you in getting the most value from your supply chain operations.
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