Perfect Combo? What You Need to Know About Blockchain Technology and Supply Chain Management
The modern supply chain is rife with problems. The industry is massive: experts expect the supply chain solutions market alone to be worth $32.9 billion by 2026. The scale of the industry leads to problems with corruption and a lack of transparency.
If your business depends on supply chain networks, blockchain technology can help to ease the logistical issues involved. The very nature of the blockchain and its immutable structure removes these problems, or at least, alleviates them.
Ready to learn more about the blockchain in supply chain management? Then keep reading!
What Is Blockchain Technology?
You may have heard of blockchain technology from its use in the world of cryptocurrency. The key technology at the heart of blockchain technology is the distributed ledger.
With Bitcoin, for instance, the distributed ledger contains a record of every Bitcoin transaction. This means that the record of every transaction is stored on millions of computers around the world. The decentralized nature of this record means that forgery is impossible, at least on a practical level.
So if you integrate blockchain technology into your supply chain process, what would that look like? How could it help you?
How Blockchain For the Supply Chain Can Solve Problems
Integrating the distributed ledger of blockchain technology into your supply chain means that everyone involved in the process will have access to the distributed ledger and all of its data without high overhead cost or fees. This solves some of the key problems of supply chain management. Let’s take a look at how it does this.
It Makes Corruption Nearly Impossible and Makes It Easier to Track Faults
Corruption is a big problem for the supply chain. For instance, somewhere along the supply chain, someone may decide to preferentially purchase from one supplier over another, in exchange for bribes. Monopolies on certain components can lead to price-fixing, too.
These and other problems can be solved by the distributed ledger. The ledger keeps track of every step of the supply chain and lets you spot any suspicious transactions.
If you get faulty products or components, the blockchain makes it easy to track down where these came from, too.
You Can Save Money
Due to the scale of the industry, there are often issues with high costs in the supply chain. Identifying wasteful habits with conventional methods is nigh-impossible. If you use blockchain technology, its transparency means that you can easily identify where there are problems with high costs.
Blockchain technology can be integrated across every part of your supply chain. Its distributed nature means that everyone needs to add to it and verify that it’s accurate. This interoperability keeps your supply chain well-managed and integrated.
How We Can Help You
We’re specialists in software development and can help you integrate blockchain technology into your supply chain. We’ll build a customized solution that can fit your needs and help you roll it out across your systems.
For more information about our services and our rates, please get in touch with us.