Supply chain and logistics solutions are moving ahead with an integrated 4th industrial revolution model – Artificial Intelligence and the Internet of Things have paved the way for automated systems and the deployment of millions of robots and drones in the system has simplified various processes. One such contemporary technology that is making waves in the achievement of effective supply chain management is blockchain.
Blockchain is the digital record-keeping technology backing cryptocurrency networks but its scope far exceeds digital currencies. The use of blockchain in global supply chain systems is related to the easy combining and safe storing of data and information, along with smart and quick transactions.
Understanding Blockchain-Based Supply Chains
A blockchain-based supply chain is a digital system that uses distributed ledger technology to record, validate and store information regarding the production, storage, distribution, and movement of goods. It also facilitates secure sharing of documents, sensitive information, and cryptocurrencies between different companies involved in the supply chain systems.
Blockchain technologies are taking over the world. They are being used in all kinds of industries, including healthcare, banking and finance, even music. While the idea of a blockchain-based supply chain and logistics solutions may sound futuristic, it’s actually one of the most tangible ways we can see how this technology is changing our lives for the better.
The goal of blockchain in supply chain management is to create a digital record of all transactions, from the moment goods are brought into a factory until they’re ready for sale. This lends transparency to the system, resulting in greater efficiency. The main benefit of this system would be to make it easier for companies to track their supply chain and prevent fraud from occurring. This could help companies easily import products from other countries, and avoid dealing with various issues that come with trading goods in bulk or importing them from abroad.
This also means that blockchain-based effective supply chain management allows for more cooperation and transparency between all parties, which leads to increased trust and good relationships between them all. Since all the information is stored on a digital ledger, businesses can access the same information about their suppliers’ products and services, which makes it easier for all parties involved to make informed decisions based on real data rather than hearsay.
The greatest advantage of using blockchain technology in supply chain and logistics is the safety. The ledger is difficult to hack or corrupt as it is distributed over a vast network. You would need to synchronously log the modification on every node in the network in order to make a change to the ledger. The network will flag the transaction as corrupt if this isn’t done since it will notice that one record doesn’t match the others. Therefore, you can be assured that your information and records are perfectly secured, allowing you to have an effective supply chain management system.
It is quite apparent that the 4th industrial revolution is taking supply chains toward a radical improvement, given that the technologies are integrated in the pre-existing systems efficiently. Blockchain technology can usher in a new era for supply chain and logistics solutions with a secure ledger to track every single point along the chain without compromising on the security of the information.
ICS Global Logistics supports the adoption of new and improved technologies in the supply chain to deliver the best logistics services to all our clients. The future of an effective supply chain management lies in seamless integration of contemporary tools and resources!