FREMONT, CA: In today’s digital era, the world’s leading companies leverage computerized enterprise resource planning (ERP) and supply chain management software. All the products are tracked on computerized systems from their origin to the recycling bin. Despite this huge investment, most of the companies have limited visibility into where all their products are, at any given point. Right from payments and audits to the tracking of inventory, the blockchain technology has enabled greater supply chain efficiency than ever before. The blockchain is a great way to enhance supply chain management, and with the use of smart contracts, it can make sure that different suppliers can meet their obligations. In a nutshell, this is a global system for mediating trust and transparency that potentially transforms the supply chain.
Majority of the current supply chains are sequential and siloed. As the vast amount of data are copied and passed through the chain, data takes a long time to propagate through the supply chain which eventually slows down the operations and leads to supply and demand mismatch. This, in turn, creates excess inventory, shortage in stock, and high logistics costs. By removing the data from behind the walls of enterprises, blockchain can enable the real-time supply chain. This mitigates the lag and speeds up the supply chain by reducing logistic inventory costs and improves the service to the end customer.
Various enterprises have already started implementing the blockchain technology in their supply chain management. Walmart has deployed blockchain technology to ensure the provenance and quality of pork in China, which is plagued by food-safety scandals. The main reason behind implying blockchain is to check the safety and authenticity of food and track it in real time throughout the supply chain. BHP Billiton, a mining giant, is using this technology to track the mineral analysis done by the outdoor vendors. Everledger, a start-up has uploaded unique identifying data on a million diamonds to build the quality assurances so that it can help the jewelers comply with the regulations barring blood diamond products.
The blockchain is envisioned to be automation that could propel the world into the next industrial revolution with innovative paradigms for doing business in different industrial sectors. However, even with this growing acceptance of blockchain technology, there are still some regulatory pushbacks to overcome as regulations vary from one country to another. The way blockchain is being utilized needs to move forward with industry-wide standard regulations. However, the technology is considered as the wave of future as there is much more it can achieve. Eventually, it is hard to ignore blockchain benefits.
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