RapidIn the era of digital transformation, blockchain technology is proving to be a
significant game-changer across various industries. Particularly in the realm
of supply chain management, blockchain's potential is revolutionary. This blog
post delves into how retail tech leaders can harness the power of blockchain
for fostering transparent and efficient supply chains. We explore real-world
examples of companies already venturing into blockchain supply chain solutions
and the transformative impact this technology can have on your business
operations. In this blog, you will gain a deeper understanding of this
groundbreaking technology and discover how to leverage it for competitive
advantage.
How is Blockchain Integrated into the Supply Chain?
Integrating blockchain technology into a supply chain involves a systematic
process, which can be described as follows:
Blockchain: The Beginning of Supply Chain Revolution
Blockchain is a decentralized ledger that records transactions across multiple
parties in a secure, verifiable manner. This technology can also be programmed
to initiate transactions automatically. Its principal function in supply
chains is to safeguard businesses from malevolent actors while promoting
operational efficiency. Successful blockchain applications in supply chains
will necessitate new permissioned blockchains, new standards for representing
transactions, and novel rules to regulate the system.
Blockchain's Role in Supply Chain: 2023 and Future
An examination of seven leading US corporations unveils insights into their
exploration of blockchain supply chain solutions. These companies span diverse
industries such as manufacturing, retail, technology, and financial services.
Their interaction with blockchain varies: some are in the initial exploration
phase, others are running pilot projects, and a few are collaborating with
supply chain partners to build applications. This paints a picture of
blockchain's current use in supply chains, its advantages, and how it differs
from its application in cryptocurrencies.
Traditional Vs. Blockchain Systems in Supply Chain Transactions
Conventional financial ledgers and ERP systems often fall short of providing
complete visibility of transactions to all parties involved. This results in
execution errors, impaired decision-making, and supply chain disputes.
Blockchain, however, can eliminate these blind spots. Prominent corporations
like Walmart and Procter & Gamble have spurred advancements in supply chain
information sharing since the 1990s via enterprise resource planning (ERP)
systems. Nevertheless, visibility remains a challenge for intricate
transactions in extensive supply chains. Blockchain could potentially overcome
these limitations.
Stricter Audits, GS1 Standards, and ERP System Integration- Promoting a
Robust Supply Chain
Auditing transactions to verify compliance and inspections of inventory in
stores are traditional measures to improve supply chain execution. While
necessary, these methods have limited value in enhancing operational decision-
making. Integrating ERP systems and marking inventory with RFID tags or
electronic product codes adhering to GS1 standards can eliminate execution
errors and enhance traceability.
Blockchain's Solution Antidote to Supply Chain Challenges
When blockchain is used, all assets, including inventory units, orders, loans,
and bills of lading, are assigned unique identifiers, akin to digital tokens.
Participants are given unique identifiers or digital signatures for signing
blocks added to the blockchain. Every transaction step is recorded on the
blockchain, enabling a transparent, trustable, and tamper-proof audit trail of
all supply chain activities.
Blockchain: The Future of Supply Chain Management
The blockchain in supply chain market is set for a skyward surge. With its
valuation standing at USD 375.6 million in 2021, it's predicted to catapult
with a compound annual growth rate (CAGR) of 69.5% from 2021 through to 2030.
That's a seismic growth trajectory not to be ignored! In contrast to
traditional financial-ledger systems, blockchain integrates all types of
transaction flows and captures details that might otherwise be lost. Since
each participant maintains a copy of the blockchain record, they can monitor
transactions, identify errors, and hold other parties accountable. No
participant can alter past data as it would necessitate rewriting all
subsequent blocks on all shared copies of the blockchain.
Start integrating Blockchain with your supply chain ecosystem today. Book a
free consultation call with our experts.
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