Blockchain in Supply Chain Management

There’s a good reason why the supply chain industry is regarded as the central nervous system of the global economy. Just like when Evergreen’s cargo ship blocked the Suez canal, all it takes is an operational mishap to remind everyone that our global supply chain is fragile.

Luckily, the sector’s aggressive adoption of advanced software, new delivery systems like drones, and infrastructural innovation has led to cheaper and more available raw materials and finished products.

But, with the recent spike in global tensions, increasing gas prices, labor costs, and international bureaucracy, the industry is more exposed than ever.

There’s a great need for businesses in the supply chain sector to stand out, and the best way to do that is by embracing the next technological breakthrough of our time: blockchains.

Blockchain: A Proven Technology

Blockchain technology isn’t something new. It’s been around since the 1980s. It only became popular in 2008 when Satoshi Nakamoto created the first decentralized blockchain technology, the bitcoin blockchain.

Ever since its creation, the technology has grown tremendously and has been integrated into several industries through cryptocurrencies, smart contracts, NFTS, financial services, online games, the metaverse, IOTs, and supply chain management.

Important Characteristics of Blockchain Technology

Here are some important characteristics of blockchain technology that can improve the supply chain sector

Speed and Efficiency: Boost the delivery speed of goods and services.
Security: Blockchain offers cryptographic security, which is near impossible to crack.
No Third Party: Decentralized blockchain facilitate transaction and interaction between individuals and removes the need for a middleman.
Accessible: Like the internet, blockchain tech is accessible from anywhere in the world.
Transparency: Data is open and accessible to everyone.
Decentralized: Data in blockchains are not concentrated but saved in diverse nodes in the network.
Smart Contracts: Blockchain can enforce and automate smart legal contracts and avoid payment disputes.
Performance History Monitoring: Detailed history of all transactions on the blockchain.

Areas of Application for Blockchain Technology

The following are areas where blockchain technology can be used in supply chain management.

Live Tracking of Goods

Blockchains work with digital identities, which can be given to goods. And when that’s paired with critical innovations like the Internet of Things and tracking devices, these identities can be used to monitor freight and cargo in real-time.

Better Traceability

With the help of digital IDs, Blockchain can also help recognize your exact commodities and avoid any mixup with similar ones.

Quality Assurance

blockchain technology makes verifying your product’s origin and production process easier. This can be useful for tracking blood diamonds and non-ethically produced goods.

Quicker Processing

Smart contracts and digital IDs help blockchain technology to eliminate massive paperwork, and bureaucratic bottlenecks and ease the authentication processes.

Inventory Management

The basic function of blockchain is to serve as an unalterable ledger, and that’s perfect for managing inventory.

Some Companies and Brands Already Using Blockchain Supply Chain Management

There’s no doubt that blockchain is going to play a vital role in the future of supply chain management. And some futuristic brands are already taking the bold step of aligning their business with blockchain technology.

Some of these brands are:

Treum: A blockchain brand with the goal of helping logistics and freight businesses with traceability, transparency, and supply management.
Tony’s Chocoloney: A brand tracking child labor coffee.
Luxarity: A blockchain dedicated to making donations transparent.
Brilliant Earth: A blockchain brand for tracking, documenting, and certifying diamonds.
GenuineWay: This brand has developed a blockchain for tracking and promoting social and environmentally friendly practices in diverse industries, including food, fashion, and cosmetics.

Final Notes

The coming years will be very pivotal to the future of blockchain technology, as the possibility for adoption cuts across digital identification and smart contracts. They may one day extend to national voting.