Blockchain leading a path towards improved and advanced supply chain

Blockchain leading a path towards improved and advanced supply chain

Ever since civilizations have come into existence, there has always been the production and process of products and goods. Times have passed, the requ

Blockchain technology to make the food industry more transparent
Tokyo Institute of Technology starts a FinTech collaborative
Blockchain Startup Creates Own Coin For Educational Purposes

Ever since civilizations have come into existence, there has always been the production and process of products and goods. Times have passed, the requirements and needs of the people have grown and the world today has modernized with technology than what it was in ancient times. So, like all the changes, the manufacturing and production system of merchandise and goods has also evolved. Earlier, there was no certain form or sequence involved in the such process but nearly two decades ago the concept of supply chain was introduced which bought a revolutionary difference in how production and delivery should be carried out. And now two centuries later, the supply chain has become opaque making it a tough task to keep in balance the new age process and systems.

The introduction of blockchain technology was initially the base of bitcoin and was quoted to revolutionize the way payment work by introducing digital money. But over the last couple of years blockchain has proved to be an advanced solution which can make the suitable and much-needed changes to supply chain. According to experts the new and emerging technology of blockchain can revive the supply chain model and make it fit for the modern world production process by creating transparency and efficient in several numbers of ways.

Supply Chain follows a system which involves determined and calculated operation activities, data and resources to ensure that a manufactured product is efficiently delivered from the supplier or manufacturer to the end customers. It is based on the network of supply and demand of goods. In short, the entire chain includes a suitable sequence of activities beginning from the transformation of raw material and labor to delivery services of the products. The inception of supple chain initially led to improvising the control on goods, their movements across places and the visibility. But now, the concept of supply chain needs to be upgraded to fit the current 21st century technology and complex production process which have become fragmented and much dispersed geographically.

Today, various companies following the supply chain are facing various issues in different aspects. The supply chain process involves quite a number of stages while creating a product. The accurate and exact track of these stages and production at every stage is becoming difficult by each passing day. Also, nowadays everything has become diverse and wide spread including customers at different geographical locations. This has resulted in making the tracing process of the delivery services quite hard for both the customer as well as suppliers. The cost and expenses of the products also cannot be easily and accurately validated sometime considering the unidentified gaps and lacks of transparency in the current supply chain model equipped by the companies. While a company usually carefully studies all the factors related to the supply chain, there has been still no perfect way to estimate or track the unexpected environmental damages of products in the production process. Apart from all this directly related aspects, supply chain model today is also problems in the form of forced labor, counterfeiting, illicit activities and poor conditions of factories to name a few.

With problems, sooner or later come the solutions. The employment of blockchain technology for supply chain is the optimal solution to all the issues. Blockchain is a transparent public ledger which keeps every recording in a linear and chronological order. Owing to blockchain now every raw material and its use in different production stages can be easily traced. It would establish not only transparency in the entire supply chain process but will ensure the security of it by recording transactions accurately and registering all the specific details about price, date, quality, location and state of the goods and merchandise. The supplier would be able to calculate the accurate cost of the product inclusive of all the factors. Blockchain would also create a decentralized structure and would implement cryptography which will make it impossible to use for any illicit purposes.

The technology of blockchain would make innumerable changes which will result in upgrading the supply chain making it capable to face the challenges and provide optimal production results in the modern complex systems. Its potential of transformation of the process will create a safer and more reliable path for production and delivery of goods.

COMMENTS