Summary
The supply chain has become more valuable through the implementation of blockchain technology because of the increase in its transparency and accountability. Today’s blockchain provides a better solution to the most significant challenges, including fraud, counterfeiting, and high fixed costs.
5 Benefits Of Blockchain In Supply Chain Management
Let’s see the 5 benefits of blockchain in supply chain management.
| S.No | Benefits |
| 1 | Enhanced Transparency |
| 2 | Effective Tracking of Asset Records |
| 3 | Safeguard Against Fraud and Counterfeit |
| 4 | Minimizing Paperwork and Operational Expenses |
| 5 | Improved Efficiency and Accountability |
1. Enhanced transparency
Blockchain helps to improve transparency in supply chain management. Through it, you can easily track the supply chain of an item in real time. Blockchain provides the efficiency of tracing physical products back through sellers, manufacturers, and even producers, guaranteeing that all chains’ contributors are informed equally and accurately.
For example, in the food industry, agriculture and veterinary products, pharmaceutical products, and high-end products, consumers can track a product from the material to the end product to confirm its genuineness and quality.
2. Effective tracking of asset records and their status.
Blockchain makes it easier to track assets to ensure that the actual number on the ground is captured without having to go through all the many processes that entail counting assets manually. In the case of applying blockchain technology, manufacturers and suppliers can easily track the movement of goods and supplies from one phase of manufacturing and distribution to another.
It also reduces theft, fraud or loss of products because, by using this capability, it is possible to keep records of inventories in real time.
3. Safeguard against Fraud and Counterfeit Money
Thus, the integration of blockchain makes it easy to fight counterfeiting and fraud in the supply chain. Since about 10% of global sales involve fakes, particularly electronics, drugs, and expensive items, the platform’s capacity for ensuring that a product’s provenance is genuine is incalculable.
Through recording every transaction and movement of the products at the blockchain, there is a guarantee that the products are original and have been sourced through the right methods.
4. Minimizing on paperwork and overall operation expenses
This is especially the case because paperwork is typically a significant portion of the total cost of operations in many industries, including shipping and logistics.
Blockchain enables automation of these processes, eliminating manual intervention and reducing errors, thus saving time and money.
5. Improved Efficiency and Accountability
This is the core strength that makes blockchain technology secure since all participants in the supply chain are able to access the same data in real time to ensure that they do not act inappropriately. Such shared infrastructure works towards promoting interdepartmental integration and ease of auditing due to the realization of variance and complexities coupled with the supply chain.
Adopt blockchain technology and boost your operations to the next level!
