Blockchain- To resolve the key issues of supply chain management

In today's scenario, it becomes difficult to manage the supply chain management. It takes days and even weeks in processing the payment between customers and vendors or in suppliers and manufacturers. In this process, contracts are managed by a banker and a lawyer that is again charged extra cost and lead to delays.

 It is a tedious task to track back the suppliers of goods as a result it becomes very difficult to eliminate these defects in the system. To ensure more traceability and transparency in the supply chain it is important to introduce the new technology that is Blockchain. 

 Blockchain can offer more transparency in the supply chain and enable handling the various issues of the supply chain. In this article, we discuss the key issues of the supply chain and how blockchain can resolve them. 

 Key challenges in supply chain

 Previously supply chain was not so complicated but in today scenario businesses are widened globally. In the past, businesses were limited to specific regions as a result thing was transparent and easy to manage. But, the business growth has made things complicated due to the lack of transparency in the system. The key challenges of the supply chain industry:-

• Lack of traceability  

Product traceability will allow you to trace where the product is at the current time in the supply chain. But, every stakeholder maintains their data in the supply chain network that make it difficult to perform predictive monitoring. It is difficult to find what was happened in the different stages of the production. 

• Expensive cost 

Supply chain management includes various stakeholders which will ultimately increase the cost of an entire management system. They also cost a certain amount of fee from the total amount which is again an expense.

 

• Regulatory compliances and documentation  

The supply chain process contains contracts which can be complicated due to change of complicated payment terms, ownership, bill of lading, etc. The lengthy and complicated documents are difficult to execute and modify. 

·         Lack of trust

 People always has a concern that from where the product is manufactured and delivered. Is the product is real or fake? There is a trust issues in the supply chain process because it contains no information about the origin and parties involved in it.

Blockchain to transform supply chain management

 

• Trace provenance:-  the lack of traceability is a key issue that impacts the brand reputation. In blockchain-based supply chain management, it is easy to keep a record, track provenance, and data share because all transactions are saved in blockchain that can’t be altered or deleted. As a result, it is possible to trace the product history from its origin and where it is delivered through the blockchain supply chain. This helps to detect and resolve fraud happen in the supply chain process.

 

• Build trust:- All parties involved in the supply chain need to trust each other. For example, manufacturers are depending on the supplier to meet factory safety and tell everything about using raw materials and sources. In blockchain implemented supply chain, it becomes easy to build trust. Blockchain has immutable nature that prevents the supply chain ecosystem from tampering with data. 

 

• Reducing cost:- with blockchain, it is easy to track the product in a supply chain which will reduce the cost of moving items in the supply chain. The elimination of intermediaries in the supply chain will save extra costs, prevent frauds and reduce the chances of product duplicity. It also enables direct payment processing between two parties rather than depend on centralized systems.

 

• Minimize complexities:- Blockchain has smart contracts which are useful to fix issues related to complicated issues. When any transaction takes place in the system, a smart contract will execute automatically to make actions like transfer of ownership, sending alerts, payments, etc. without any need of an intermediary. Smart contracts are code-based that follow rules which can’t be changed easily. It not only minimizes the complications in the contracts but also provides flexible support to new business models. 

Hire professional supply chain blockchain consulting services

Do you also want to implement the blockchain in your supply chain to get its various benefits? If yes, then you should approach the experienced and trusted supply chain blockchain consulting firm like Group50. It is one of the reliable consulting firms supported by professional blockchain technology consultants who have years of experience in providing private and permissioned blockchain to the organization that only accessed by authorized persons of the organization. They are come up with a proprietary Scioebc plug-n-play blockchain which is a supply chain and IoT solution to make use of next-generation technology. If you need affordable blockchain supply chain consultants service then contact Group 50 experts today.