Blockchain, the technology behind the popular cryptocurrencies, has taken the world by storm. With its ultimate decentralization and encryption feature, the technology has emerged out as the missing element of almost all the business verticals. But, is the same true for the supply chain? Will Blockchain app development improve the supply chain management?
The supply chain is basically the way you exchange goods, services, and information within your brand. You might overlook the channel, but it is the pipeline of the business progress. A minor error in the process of the supply chain can bring adverse impact on the organization’s future.
Sounds stressing? With the growing competition in the market, the need to rework the supply chain process so as to reduce the risk of failure and ensure higher efficiency and profits has increased. Businesses are experimenting with a broader range of technologies to improve their present and future – with Blockchain one of the top options.
When talking specifically about the application of Blockchain technology in the supply chain management process, the technology works upon the four major pain points on the industry. These are:
Blockchain, being a digital shared ledger, offers exclusive tracking possibilities (including timestamping). It serves the community with a full audit trail with which the businesses can keep a record of all the new entries and update in real-time. They can have a great oversight and control over the product supply in real-time and take better yet rapid decisions on a continuous basis. In other words, the technology lets all the network participants know, at any point in time, who owns a particular commodity and on what condition.
This functionality of Blockchain is aiding in verifying the authenticity, origin, and custody of diamonds throughout the supply chain network. One of the considerable examples is Everledger. The startup, with the help of Blockchain app development, has come up with a solution that circumvents frauds and illegal global diamond trading. It analyzes for fingerprints on each stone to detect its past history, and this way ensure the safety of each component in the network.
Traditionally, there’s a lack of a standard or compliance that ensures that all the regulatory conditions are met. However, this problem will be solved with Blockchain technology. In the case of the blockchain, all the transactions are time-stamped and tamper-proof, resulting in a single source of data integrity. In a layman’s language, the technology works in such a way that every change in the data is firstly approved from the network participants ensuring security at a higher scale.
The Blockchain technology will also deal with the issue of not being able to adapt rapidly to events and issues and scenarios that could bring significant change in the operational cost. Blockchain, using the concept of Smart Contracts, ensure continuous tracking of data in real-time. This empowers the company to know and inform the associated workers regarding the change in the demand for products and supply, and much more.
- Stakeholder Management
Last but not the least, the Blockchain technology enables peer-to-peer interactions based on digital signatures. This helps the organizations to easily share the information and make it gel with the currently going processes.
The possibility of usage of Blockchain technology in the supply chain is increasing day by day, with PoC (Proofs-of-Concept) being developed across all the industries. Though various challenges are associated with Blockchain app development currently, the early entrants are supposed to get a competitive edge over others – shaping a brighter future with Blockchain technology. So, what are you waiting for?
Author Bio:-Holding a Bachelor’s degree in Technology and 2 years of work experience in a mobile app development company, Bhupinder is focused on making technology digestible to all. Being someone who stays updated with the latest tech trends, she’s always armed to write and spread the knowledge. When not found writing, you will find her answering on Quora while sipping coffee.