How Blockchain Technology is Used in Supply Chain Management ?
28/2/2024 -BSI
Supply chain management (SCM) involves the coordination and management of the flow of goods, services, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer. It encompasses various activities such as sourcing, procurement, production, logistics, and distribution. Blockchain technology has emerged as a potential game-changer in supply chain management due to its ability to provide transparency, traceability, security, and efficiency in recording transactions. Here’s how blockchain can impact different aspects of supply chain management:
Blockchain Technology for Supply Chain Management (SCM) : Reduce Operational Cost, Streamline Operations, Automate Inventory Management
- Transparent transaction ledger of real-time data across the Supply Chain; from procurement, production to distribution.
- Each transaction and mobility of the product is time-stamped and linked to the previous one, creating an auditable trail of the product’s journey through the supply chain.
- Real-time visibility of the origin and movement of the products from their source to the end consumer.
- Blockchain technology utilizes cryptographic techniques to secure data, making it resistant to tampering and unauthorized access.
- Smart contract (self-executing contract) in blockchain can automate inventory management, contract execution, payments, and customs clearance.
- Smart contracts with predefined rules encoded on the blockchain, can automate transactions between parties
- With blockchain-enabled traceability, identification and isolation of bad products is easy and quick.
8. By digitizing and automating the exchange of financial documents and assets, blockchain reduces the risk and costs of traditional financing. It Improves liquidity and cash flow for businesses.
9. Smart contracts can automate inventory tracking and trigger notifications or actions when predefined conditions are met, such as low stock levels or expiration dates approaching.
10. Blockchain enables secure and permissioned data sharing among supply chain partners while preserving data privacy and confidentiality.
11. Authorisation of data handling strengthen the whole supply chain system secure and safe. Specific stakeholders according to their job responsibly can access the specific data.
12. Blockchain can assign a unique digital identifier for each product. Throughout the supply chain, stakeholders can verify the authenticity of products by accessing that unique digital identifier in blockchain ledger.
13. Regulatory compliance can be monitored anytime by tracking real-time data of inventory movement, transparent data of each and every monetary transactions recorded in blockchain ledgers.
14. Blockchain-based inventory management systems can facilitate supply chain financing by providing a transparent and secure platform for inventory-backed financing transactions.
15.For funding the supply chain business, Banks and financial institutions can use inventory data recorded on the blockchain as collateral for loans or trade finance, improving access to capital for businesses and reducing financing costs.
In today’s dynamic business landscape, optimizing supply chain operations is paramount for businesses seeking to enhance efficiency, minimize costs, and maintain a competitive edge. At Business Software India, we understand the challenges that organizations face in managing complex supply chains and strive to offer innovative solutions that leverage the power of blockchain technology. Business Software India is one of the pioneering blockchain development company in India.
Whether you are a manufacturer, distributor, retailer, or logistics provider, our team of experts is dedicated to helping you unlock the full potential of blockchain technology in supply chain management.
Contact us today to schedule a consultation and learn how Business Software India can empower your organization to thrive in the digital age of supply chain management.Together, let’s redefine the future of supply chain excellence with blockchain technology.
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Cecil Doby