How relevant is Blockchain in supply chain management?

The blockchain is the chain of transactions in the form of ledger entries about assets which could be money, data, maps, documents, etc. In reality, the transactions are taken place through tokens containing the metadata of the assets. The physical transfer happens separately. The most prominent use of blockchain are in the cryptocurrency and Bitcoin. The reality is that blockchain which is essentially a distributed digital ledger has many applications and can be used for any exchanges, agreements, contracts, tracking and of course payment. Since the block refers to the grouping of transactions related to each other. This technology can be used in various applications.

Blockchain is relevant in supply chain management as it is highly transparent. It is also highly secure since every block links to the one before it and after it. Not one central authority is there over the blockchain and it is extremely efficient and scalable. Ultimately, blockchain can increase the proficiency and transparency of supply chains. Chain of command is important for many things, and blockchain has the chain of command built-in.

For a smooth flow of goods and services, there are few important things. It requires efficient movement and storage facilities for raw materials and updated inventories. This entire process is known as supply chain management which involves detailed planning, execution, and monitoring of each decisive step to ensure effortless functioning from the point of origin to the point of consumption.

Information gets stored in blocks of data that are “chained” together which helps as a solution for logistics. Using data from a blockchain, the network members can check the block of the transaction, creating a transparent and efficient system for managing all the documents and transactions involved in the logistics and supply chain process. While the applications of blockchain in some industries may not be so obvious, its uses in the trucking industry are readily apparent. They require a higher level of security, and blockchain is the best solution to date, as its protection is ensured by advanced encryption methods, distributed ledgers, and smart contracts. These features of blockchain allows us to tackle theft, ransomware, corruption, premium fees, and problems with tracking.

The shipping and logistics industry is searching for new technologies in order to upgrade the existing processes, cut costs and increase the transparency of the supply chain. The blockchain technology offers a solution to most of the current issues. There are certain challenges associated with the implementation of blockchain for supply chain management, but the more companies start implementing this technology, the more examples of successful utilization we will seen.