HOW CAN BLOCKCHAIN BE BENEFICIAL FOR THE SUPPLY CHAIN & LOGISTICS INDUSTRY?
Blockchain is one of the most rapidly emerging industries with numerous benefits in different industries. One such industry is supply chain & logistics. There are many problems faced by the logistics industry, which are likely to be resolved quickly with the introduction of Blockchain.
The supply chain is a system of organization that supplies the end product to the consumer. It involves transforming natural resources and raw material into the finished product, which is then supplied to the end consumer. Logistics being one of the significant elements of the supply chain industry, needs to be handled very carefully.
Logistics refers to the overall system of managing the storage and transportation of the finished goods to the customer. Proper logistics management ensures timely deliveries and enhances the organization’s reputation involved in supplying the end product.
Blockchain technology provides the best solutions for many challenges faced by the logistics industry. The decentralized network offered by blockchain technology helps in providing transparency and security. From providing administrative efficiency to order tracking, blockchain technology provides many benefits for the efficient performance of logistics.
Benefits of Blockchain in Logistics
According to blockchain professionals, many businesses and industries have been adopting blockchain for implementing proper and efficient management systems to increase productivity. Blockchain can help in resolving the challenges faced by the logistics industry. Let’s explore some of the potential benefits of adopting blockchain technology in the logistics industry:
Accurate Inventory & Freight Tracking
Inventory tracking is one of the biggest challenges faced by the industries. They spend a lot of money on the proper management and efficient inventory tracking. But the introduction of blockchain has resolved this issue. Blockchain helps companies keep complete track of the logistics by monitoring it in a highly efficient manner.
Another essential factor affected by the introduction of blockchain is the improved efficiency of shipping and freight tracking of the final goods. Blockchain offers the proper authentication with verification so that it becomes easy to keep track of all the deliveries in real-time. This system helps ensure a better customer experience, and it also enhances the company’s reputation.
The transparency offered by blockchain is one of the most significant advantages of implementing this technology in different industries. This transparency reduces unnecessary paperwork and develops trustworthiness among the companies.
Transparency, one of the key features of blockchain technology, lowers the chances of disputes and worker exploitation. The increased supply chain transparency provides more visibility to both businesses and consumers.
Blockchain significantly affects the logistics industry by providing a decentralized and transparent way of storing and accessing supply chain data.
The digital ledger created by blockchain keeps all the transactions secure and transparent so that it becomes easy to access the information without any fear of cyber attacks. The transparent approach of recording the data guarantees accuracy and proper management of logistics with on-time deliveries.
Reduced Risk of Fraud
The transparency offered by blockchain helps in the reduction of risks of fraud. When supply chain processes are secured with blockchain technology, it becomes impossible for any fraudulent activity to occur. It assures that the transactional records are only validated with the consensus of all the participants involved in the complete procedure.
The implementation of blockchain reduces the unnecessary involvement of mediators and manual transactions. Blockchain makes it easier to trace and restore any record to its original version. All the members involved in the supply chain procedures can use the data available on the blockchain network better and more securely.
According to blockchain professionals, implementing a blockchain system in the logistics industry will be beneficial in cost savings. The introduction of blockchain can boost the efficiency of administrative processes and help in cost reductions. Effectively lengthy procedures involving manual checking for compliance and credit purposes can be accelerated by providing a distributed digital ledger providing all relevant information.
Blockchain can cut short the longer manual transactions processes and make transportation logistics practices more efficient and error-free. This, further, results in cost reductions as the shipment reaches the end customer faster.
Provides Quality Assurance
Using blockchain applications helps in determining the storage quality of the products. It enables controlling the status and the performance of delivery via smart contracts. It ensures that the end product maintains a certain level of quality, building the customers’ trust and enhancing the organization’s reputation.
Blockchain provides an excellent platform to provide a static registry of immutable digital certification records for consumers to look up and feel confident in the products they choose.
Improves Payment & Transaction Security
Blockchain helps in improving the security of payment & transactions. It keeps all the transactions secure and safe from cyber-attacks. Blockchain-based systems are efficient for proper invoicing and maintaining secure transactions.
Blockchain, a decentralized system, provides not even a single access point that permits unauthorized people to change the digital records maintained by blockchain technology. With blockchain technology, all the transactions are secured from any malicious intruder or any cyber attacker.
This system provides increased data security while allowing free access to information to all the parties involved in the transaction process.
Blockchain has a great future in the Supply Chain and Logistics industry. It is pretty clear from the above-mentioned benefits of blockchain technology that the demand for certified blockchain developer will be increasing in the coming future. To avail of these increasing opportunities in blockchain development, the professionals must undergo proper blockchain training. Blockchain provides an innovative approach to the supply chain industry for managing things effectively and efficiently.
When combined with other technologies like Artificial Intelligence (AI) & the Internet of Things (IoT), blockchain technology will provide an innovative approach to managing things and tremendously increased job opportunities for blockchain developers.