Is Blockchain the Future of Supply Chain?
Supply with ‘BLOCKchain’
For those of you who don’t know about blockchain. I’ll try to explain it in simple words, blockchain technology is a public, decentralized record of transactions. It can be implemented in different ways, but at its core, it’s a method by which every person involved holds a complete ledger of every transaction completed in the network. For more info, watch this video,
Why is Blockchain So Trendy Nowadays?
Even though it's almost 10 years old technology, blockchain has always been able to find itself in newsreels due to cryptocurrency. Cryptocurrency is an application of blockchain, and I’ll cover it some other time.
Moving on, As Blockchain makes it possible to easily verify transactions in a transparent way, while also ensuring that these transactions are verified by others in the network, transparency is promoted.
Fundamentally, Blockchain technology verifies all of its interactions with peers, so it’s a safe and secure method of completing valuable transactions.
It is because of benefits like these that Blockchain is considered as an ideal technology for the future of the supply chain. Also, it finds a use case in various other industries like healthcare, banking, voting, etc.
In 2021 and beyond, we are likely to see blockchain implementations in a variety of supply chain applications. Blockchain is already proved to be of great advantage in high-resource fields, such as mining where precious metals and precious gems need to be systematically tracked and sourced. Over some time, it’s likely that Blockchain technology will be integrated into the various other supply chain solutions across the globe.
To help you understand, how blockchain can create a revolution in the existing supply chain industry, here are a few solutions I feel are ideal for it,
1. Building a Global Reach is Easier
Supply chains must now work seamlessly around the world. By employing the use of a decentralized database that enhances the tracking of all transactions, blockchain will make supply chain management more visible and consistent across the globe. To state simply, anyone from anywhere at any time can access the series of transactions being executed.
2. Improved Transparency Among Partners
By transparency, I mean that anyone can view the transactions on the blockchain’s ledger at any time. In the supply chain, this will help vendors and suppliers will see transactions simultaneously and resolve issues, in case something arises. Such a factor makes it possible for them to securely conduct valuable transactions. Further, when used for shipping and logistics, blockchain promotes ease of tracking large-scale shipments and even, works great for individual packages.
3. Improves the Sourcing Visibility
As in the blockchain, all transactions are visible, it could be of great help with tracking commodities. For eg, in the food industry, it can be used to denote where food has been sourced, and by whom it was sourced initially.
Let’s take another example of the diamond industry. Here, blockchain could be used to register and validate specific gems. Also, not to forget, it can be used to ensure that products are ethically sourced and that they have been acquired from safe, certified sources by sellers.
4. Better sustainability
Blockchain technology is scalable. This makes it possible to run extensive logistics and supply chain operations on it. More importantly, blockchain naturally supports environmentally-friendly, eco-conscious globalization.
Today, the consequences of globalization are vast, and not every business can aim at it. It's primarily because it’s not always possible for consumers or purchasing agents to know where products are coming from and what it takes to transport them. But, with the help of blockchain, it is now easier for companies and individuals alike to implement ethical procurement practices.
Lastly, I’d like to say that Blockchain technology is already being integrated into a number of different industries. And in 2021, we are likely to see the supply chain and logistics industry swiftly adopt blockchain technology as a means to keep up with growing demand. If you are someone who wants to know how to become a blockchain professional, I’ll recommend you to take up the course provided by EC-council. They are the industry leader and also offer real industry insights as a part of their training program.
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