HOW THE SUPPLY CHAIN INDUSTRY IS NOW SET TO A MAJOR DISRUPTION WITH BLOCKCHAIN EMBRACEMENT?

Blockchain – A game changer for today’s supply chains:

Nowadays, businesses start finding that the blockchain use cases seem to disrupt their functionalities at a greater pace. Especially, the product supply chains have been experiencing transformations gradually in terms of their operations with the application of advanced blockchain technologies.

For instance, if we take a critical supply chain system, it usually takes days to complete a payment transaction that happens between either a product consumer and a vendor, or a producer and a supplier. Blockchain helps in addressing this cumbersome challenge by enabling the fast-forward transactions. 

Let us assume that a product/commodity/service has been launched into the market by the company that has manufactured it.

In this case, its supply chain implies the entire life cycle of the product right from its flow from the producers/suppliers to the consumers. It primarily involves the following aspects:

·         Sources of raw materials needed for its production

·         Transportation of raw materials to the production centers

·         Packaging procedures of the newly manufactured product items

·         Disposal of the products to the delivery shops.

Thus, the overall lifecycle of the product gets completed only with the intervention of a variety of activities, and third-parties and they collectively constitute a series called supply chain.

In general, a hypothetical supply chain is an end-to-end product delivery system, responsible for the creation of the products and the delivery of the same to the end-users.

Supply chains not only account for the issuance of products to the customers, but there might also be the return of products from the customer side, in order to get buybacks or refunds. This case happens only when the product fails to meet the consumer demands or else when the customer is not satisfied with the use cases of the product.

Hence the supply chains are always bi-directional in nature and the components revolving in it can move in a to and fro motion throughout the supply chain.

The following are the basic steps for product delivery in a complex supply chain:

·         Extraction of the necessary raw materials, natural resources, components and ingredients for product creation

·         Bringing all the extracted elements together to get done with the finished product.

·         Transportation and warehousing of the product.

·         Hands-on delivery of the finished goods to the customers.

·         Return of product by the consumers.

·         Making the product available for reuse or else breaking down all the components in the product to ensure recycling.

Challenges with supply chains:

·         Lack of transparency: Makes the consumers unaware of the actual worth of the products that they use to buy in the market. Hence, it is hard for them to find out the defective items.

·         Cost issues: Makes the consumers hesitate to buy their desired products, as everyone cannot be able to afford the huge cost rates.

·         Absence of trust: Paves way for the consumers to get concerned with some corruptions that are unavoidable. 

·         Globalization problems: Opens up several severe complications in supply chain management. 

Supply chain blockchain solutions:

Thus, if we analyze the overall challenges associated with today’s supply chain domain, we can come to a clear conclusion that the supply chains seem outdated at present need to be updated with proper resolutions.

Here is where the supply chain blockchain comes in with a significant potential to drive the entire supply chain industry towards the aspect of success by making it overcoming all the possible challenges with ease.

The following are the three most crucial solutions brought by blockchain to make some prime disruptions in supply chain management:

·         Transparency: Blockchain records the overall activities that are taken place in our business supply chains to make them transparent for everyone.

·         Immutability: Blockchain links its blocks with the help of special hash functions, thereby making us aware of all the changes done within our supply chain system.

·         Decentralization: Blockchain makes us overcome the data isolation issues promptly by allowing everyone in the network to get done with 100% authenticated information with no hassles.

Applications of blockchain in supply chain:

·         Ensures enhanced safety of food products

·         Avoids fraudulence

·         Gives trust-worthiness

·         Boost up the responsibility of the food producers

Conclusion:

Thus, blockchain highly helps the supply chains in mitigating some major risks.

Are you an entrepreneur looking out for the best blockchain-based supply management services provider in the market to meet all your business demands in no time?

Try to get in touch with Tracefood. I am sure that it will help you make your business in-line with the present industrial standards with no concerns.