Supply chains today are inherently complex, encompassing many players from around the world. Many supply chains face challenges that have significant implications in terms of cost, speed, and quality across the supply chain.
In many cases, block chain applications can counter these inefficiencies and add new value. Every time a product changes hands, the transaction could be documented, creating a permanent history of a product, from manufacture to sale. This could dramatically reduce time delays, added costs, and human error that plague transactions today.
It could help improve the following tasks-
- Recording the quantity and transfer of assets – like pallets, trailers, containers, etc. – as they move between supply chain nodes.
- Tracking purchase orders, change orders, receipts, shipment notifications, or other trade-related documents.
- Assigning or verifying certifications or certain properties of physical products; for example determining if a food product is organic or fair trade.
- Linking physical goods to serial numbers, bar codes, digital tags like RFID, etc.
- Sharing information about manufacturing process, assembly, delivery, and maintenance of products with suppliers and vendors.
Benefits of Supply chain with Block Chain-
The block chain is an excellent way of connecting parties involved in any supply chain environment because of its transparency and security by design of the technology, increasing the consumer & partner trust.
Reduces frauds & errors-
A block chain-enabled supply chain is highly resilient to cyber-attack. Block chain allows one to follow and track the ‘journey’ of data, including a valid time stamp. This is useful in a wide variety of processes such as: Exchange of confidential business documents, transfer of shipping documents or orders and order confirmations.
It could be possible to trace back every product to the origin of raw material used. Potential cases of application in logistics are manifold: Tracking of quantity and transfers of material between Supply Chain partners or thinking of ‘smart tendering’ are just some exemplary used cases.
Minimize courier costs-
Any type of supply chain business, be it marine, air, or land-based, can take advantage of such a system – the cost savings that we envisage are as high as 90%, as a result of substantially streamlined processes.Thus we can say that block chain can help an organization decrease cost.