By 2024, Statista believes that global spending on technology will have increased to $19 billion from $6.6 billion in 2021 and $2.7 billion in 2019. These figures suggest that is becoming more well-known and that more industries outside of finance are becoming aware of its benefits. On the list of sectors actively adopting blockchain technology is the supply chain industry in particular (BCT).
Both blockchain and supply chain is defined as having multiple components that make up the whole in the portion “chain.” Supply chain management involves many stakeholders and linked operations using various modes, including manufacturing, shipping, purchasing, distribution, and transportation.
Without assistance from partners who offer supply chain software development services and aid in using cutting-edge technologies like, it isn’t easy to trace all these operations. In this article, we’ll learn how to successfully implement technology in the supply chain and which applications it can be most beneficial for.
Key Blockchain Characteristics And Adoption Specifics
The decentralized nature of the blockchain is its distinguishing feature. The transaction data is split into blocks, each containing details on the block before it. Thus, a chain is formed by all the blocks. The method of managing data does away with the requirement for a central server to store data. Primarily responsible for data authentication, secure storage, and the lack of intermediaries that might be fraudsters.
Since you don’t have to use in every step of your organization’s supply chain, it might be another technology option. Only specific business sectors may find it helpful, and you may even develop a brand-new service, like inventory management.
Here is another instance of how technology has been used in the real world. The Ford company uses blockchain to monitor and trace the cobalt mining and supply required to make the batteries for electric vehicles. Ford can responsibly employ cobalt during manufacturing and contribute to environmental sustainability thanks to BCT.
Technology for businesses can be efficient if your company has numerous partners. Such partners may include several carriers, factories that produce specific product components abroad, or, as in the case of Ford, a Congolese cobalt mining company. Manually monitoring each partner’s work would be time-consuming and possibly insufficient. With BCT, you can establish dependable working relationships with your partners while also keeping an eye on their work to ensure that it complies with agreed-upon quality standards.
Benefits Of Blockchain Implementation
You may see the benefits of deployment if it produces the necessary results and aids in the completion of your specific business objectives. However, several blockchain advantages apply to practically all supply chain businesses.
Maintained the products’ authenticity. Controlling the authenticity of product creation, such as jewelry, is made incredibly efficient by blockchain or distributed ledger technology. De Beers, a maker of jewelry and diamonds, employs technology to manage product authenticity from the mine to the retail shelves. For more than a million diamonds per week, the company created the Tracr platform to check their authenticity. The powered Tracr platform, which De Beers uses to work with numerous diamond-finding partners in Botswana, South Africa, and Canada, guarantees their customers that the products they purchase are authentic.
A rise in consumer faith. The previous benefit of naturally leads to this one. Customers will become loyal to you much more quickly if they understand that you invested in technology to prove that your products and services are authentic and of the finest quality.
Processing payments quickly and securely. Since was first employed as a financial technology for cryptocurrency transactions, it can also be used for supply chain industries and cryptocurrency transactions. The blockchain-enabled transactions are convertible with conventional supply chain cryptocurrency transactions. Supply chain firms can automatically track payment transactions from all parties involved in service delivery thanks to the absence of intermediaries and the lack of digital smart contracts.
Efficient supply chain risk management is a crucial advantage of BCT. Because of this, we’ve chosen to discuss this benefit in a different area.
Supply Chain Risk Management With Blockchain
Global events like the COVID-19 pandemic have significantly impacted the supply chain industry. Supply chain organizations must show higher resilience in times of change and instability. Fortunately, technology like blockchain can aid in efficiently keeping supply chain visibility and resiliency.
Blockchain allows for secure trading and increases confidence between all stakeholders by offering transparency into supply chain processes. Blockchain-based systems also provide the option to maintain a record of historical and current transactions, allowing for safe supply chain data and information traceability.
Supply chain processes become even more secure and visible if isupported by tangible assets like bar codes, QR codes, RFID tags, and IoT devices.
Technology is efficient at spotting fake goods and thwarting cyberattacks on the vital supply chain infrastructure. Furthermore, as only stores a cryptographic representation of supply chain data rather than the actual data itself, using for data management almost removes risk.
Next, let’s learn about real-world examples of how technology is used in various industries.
Blockchain Use Cases In The Supply Chain Industry
Practically, deploying can benefit any company in the supply chain industry. We list some typical use cases in the supply chain sector.
Manufacturing industry technology may be applied to manufacturing everything, from clothing to cars, to assure authenticity and sustainability. Blockchain can prove the manufacturing industry saves a lot of money on lost, damaged, or fake products, as well as show customers the superior quality of the company’s products.
Industry of medicines. Millions of people are sadly affected by the growing crime of counterfeit medication each year , however, can aid in lowering the prevalence of counterfeit pharmaceuticals. For instance, DHL and Accenture collaborated to create a blockchain system for efficient medicine identification throughout production and distribution in 2018.
Industry in agriculture. A network can ensure efficient use of farm inventory and check and contribute all the trade documents for agricultural products under the control of all stakeholders. Additionally, all sizes of farming businesses may depend on equitable trade prospects with BCT. To support the global economy and trade, agriculture must be ethical and responsible.
Production of the food industry. Like manufacturing, blockchain in the food industry contributes to a fully transparent production and distribution lifecycle. Customers can, for example, scan the QR code on a product to determine. Its natural place of origin and ensure that they purchase foods of the expected high quality.
Your supply chain organization would benefit from investing in a strong network, application, or platform. As a result of blockchain. You now have the number to reduce complete control .Over your supply chain business and limit disruptions.