While many companies are increasing their investments in supply chain management software, most of them have only limited insights into where all their products are at any given moment. In recent years, blockchain has emerged as the technology capable of revolutionizing the traceability and reliability of flows. It facilitates the communication of authenticated data between each actor in a supply chain without needing to go through the intermediary of a centralized organization. In this article, we will introduce the main advantages of Blockchain applied as to the supply chain.
More transparent and secured transactions
As we mentioned previously, by using blockchain, we remove intermediaries such as banks or other traditional financial institutions. This leads to faster and more transparent regulations since the register is updated automatically. By verifying and adding data in real time, the blockchain can increase the transparency of a supply chain. Payment conditions can be pre-programmed automatically; the visibility of a transaction can be personalized in order to make it visible only to authorized participants. This allows all connected users to transact securely.
Blockchain technology also makes a company’s supply chain much more reliable. It simplifies data exchanges while significantly reducing the likelihood of fraud and errors. In this way, companies can carry out a transparent and complete inventory of product flows to make better decisions.
Blockchain makes the recording of all the stages of a product’s supply chain possible. It starts at the manufacturing process of a product to its point of sale. Once information is saved on the blockchain, no individual or stakeholder is able to modify or delete it.
The presentation of verified data by the blockchain helps improve public confidence in a company’s supply chain. Improving the traceability of your data will allow you to develop a favorable image with various stakeholders and establish your expertise in responsible production.
Cost and time savings
As you may know, an inefficient supply chain can create many additional costs (the food industry is a good example). Blockchain helps you reduce these costs by performing an effective audit of the supply chain itself. Another advantage is the time savings that you can enjoy with the use of this technology. It streamlines the administrative processes (verifications, compliance, etc.) which can usually take weeks to be validated.
“Where does my product come from?”
“How was it made?”
“What guarantees its quality?”
As consumers request more transparency and the complexity of supply chains is on the rise, the use of blockchain is an effective and low-cost way to trace each material. Given its immutable nature, it is considered as a tool of confidence by consumers. This makes it easier for them to verify the provenance and authenticity of the products they buy.
Supply chains still rely heavily on paper documents or unsuitable software systems that are the sources of inefficiency and fraud. Whether in the food, transportation or pharmaceutical industries, blockchain represents a springboard towards the digitization of all supply chains.
One thing is certain: Although supply chain practices are already changing, tomorrow this technology will constitute the dominant infrastructure of digital supply chains. At WYLog, we decided to make the blockchain accessible to all such actors via the creation of TracerChain. Our blockchain platform aims to revolutionize the current practices of such industries by favoring the transparency and immutability of processes. To find out more, find a detailed presentation of our TracerChain platform.