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Transforming Supply Chain Transparency with Blockchain

Featured, Supply Chain, Trending

As a productions manager, understanding every detail of the product in the supply chain is crucial. Hence, supply chain management tools for record-keeping need to be trustworthy and secure.

Simplifying complex productions management with blockchain technology

When it comes to the management of the flow of goods, tracking the location and flow of products is critical. Consumer’s today demand a high degree of transparency on the products they purchase – the average customer wants to know the origin and method used to produce your product.

Additionally, government agencies and regulators alike, require manufacturers to produce information about supply chains. Besides, failure to comply with regulators leads to penalties for noncompliance.

Beyond information, current solutions for supply chains management rely heavily on trust. However, distrust among organizations has discouraged the exchange of data. This is to say, corporate entities don’t rely on shared data.

Blockchain technology can remedy this.

Blockchain can provide an open record of the location and movement of goods in a supply chain. Sharing data through a distributed ledger system can significantly affect the efficiency, transparency, and trust for any business positively.

Blockchain for data consolidation

Can blockchain technology revolutionize the supply chain?

Blockchain technology presents a number of opportunities for data consolidation. With all supply chain data in the blockchain, information is available to all members of the production line. Information will also synch simultaneously with other blockchain copies for the sender, receiver, shippers, and regulators to monitor.

So, does your supply chain need blockchain?

In other words, blockchain technology solves some of the major challenges of product production. Especially inefficient record-keeping and reporting practices which lead to scattered, incomplete and unreliable manifests, bills of lading, certifications and more.

IBM and Maersk recently announced a joint effort to explore blockchain tech for supply chain management. The venture seeks to leverage blockchain technology to streamline Maersk’s shipping operations, with efficient, secure global trade digitization platform based on IBM Blockchain. Above all, the new venture is will address needs for transparency, simplicity and open standards as goods move across borders and trading zones.

Use cases include tracking, transparency and trust

Blockchain records reflect information about the product including geographic locations. More precisely, the blockchain can record relevant information such as the geographic flow of the product as well as treatment (if required), product examination, certifications, tracking restricted or dangerous components, storage-condition anomalies and more.

Since delays that involve weather, labor disputes or error are inevitable, blockchain technology can optimize the production processes. To illustrate, with the supply chain on the blockchain, a productions manager can realize when a certain shipment is incomplete, or at risk. As a result, the manager can trigger remediation actions such as supplier substitutions or price adjustments, to avert a crisis before it emerges.

Last modified: August 26, 2019

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