The complexity in today’s supply chain with all the links and threads it takes to creating and distributing goods can make it extraordinarily complex. Depending on the product, the supply chain can span over hundreds of stages, multiple international locations, include a multitude of invoices and payments, involve several individuals and entities, and extend over months or years. Due to the complexity and lack of transparency with our current supply chains, you can see why there is interest in how blockchains might transform the supply chain and logistics industry.
It’s incredibly difficult for customers or buyers to truly know the value of products because there is a significant lack of transparency in the current system. Really, how would you know all the steps in a single supply chain, let alone thousands of different supply chains?
In a similar way, it’s quite difficult to investigate supply chains when there is suspicion of illegal or unethical practices. Consumers want to know for sure that Farm to Table, Fair Trade and Ethically Sourced are exactly that. Customers are demanding to know more about the products they’re buying and from who made them to how they were sold.
So what is blockchain and how does it help supply chains?
Blockchain is essentially a distributed, digital ledger one that has many applications and can be used for any exchange, agreements, contracts, tracking, and payment. Every transaction is recorded on a block (hash) and across multiple copies of the ledger that are distributed over many nodes and can be accessed as long as you have internet. it is highly transparent and secure since every block links to the one before it, any change made can’t be hidden. There is not one central authority over the blockchain, it has a chain of command built in and it’s extremely efficient and scalable and works with existent databases. Blockchain can increase the efficiency and transparency of supply chains and positively impact everything from warehousing, delivery, and payment.
The vital things that are necessary for reliability and integrity in a supply chain, are provided by blockchain. Blockchain provides consensus on the data, there is no dispute in the chain regarding transactions because all entities on the chain have the same version of the ledger. Everyone on the blockchain can see the chain of ownership for an asset on the blockchain. Records on the blockchain cannot be erased which is important for a transparent supply chain.
Benefits of blockchain in the supply chain.
- Enhanced Transparency. Documenting a product’s journey across the supply chain reveals its true origin and touchpoints, which increases trust and helps eliminate the bias and fraud in supply chains. Manufacturers can also reduce recalls by sharing information with OEMs and regulators and taking advantage of VeriDoc Globals Change of State (CoS) technology.
- Increased Scalability. Virtually any number of participants, accessing from any number of terminals or computers.
- Increased Security. A shared, indelible ledger with codified rules which could potentially eliminate the audits required by internal systems and processes
- Increased Innovation. Opportunities abound to create new, specialized uses for the technology as a result of the decentralized architecture
For the customer, whether they’re buying food or diamonds or car parts, consumers are looking for ways to prove the authenticity of items. Since data can be made visible to all participants who have been authorized to view it — and in general cannot be altered by a single entity, customers can have confidence that data has not been tampered with along the way. Time-stamping can provide a single source of truth on the product’s history, from the harvesting of the materials like coffee beans or diamonds to the shelving of a product in store. Knowing the full journey of a product comes with several benefits, including improved product safety, reduction in fraud and scams, and increased accuracy of information about the product.
VeriDoc Global has developed a supply chain solution that leverages blockchain technology and smart contracts. Our system verifies that each step in the supply chain has registered a digital handshake that marks exactly when and where the goods have changed hands. the modern supply chain is global and complicated but with VeriDoc Global providing blockchain-enabled supply chain solutions which improve efficiencies and reduce costs for the supply chain industry.
VeriDoc Global is now partnering with forward-thinking service providers and supply chain operators who value transparency, innovation and understand blockchain’s potential.
To learn more about our finished solutions and explore how VeriDoc Global’s software can be of benefit to you or your organization, please visit our website at www.veridocglobal.com or click on the banner below.