Blockchain technology is an open distributed ledger that can record transactions of two parties securely and efficiently. When we create a document or data and share it with a group of people, this document is distributed to the implied users at the same time. It is not copied and sent to the users individually. Any changes made by the users of this data is completely transparent. It is a promising technology and promises the reduction in risks or frauds and brings in transparency within the system.
A supply chain is a network between a company and its suppliers to produce and distribute their product to the buyers. Here we will discuss briefly about how The Blockchain technology has affected the supply chain in businesses :
- Blockchain facilitates recording the quantity and transfer of products as they change hands between supply chain nodes. Tracking change orders, buy orders, shipment notifications, trade documents and receipts from the blockchain ledger.
- As blockchain allows real-time tracking of a product within the supply chain without the involvement of intermediaries, the cost of moving items can be reduced
- It eliminates or reduces the middlemen from the process thus reducing extra costs, counterfeits or frauds and decrease the chances of product duplicity.
- Blockchain helps organizations understand their supply chain and engage consumers with real, verifiable, and immutable data
- Transparency builds trust by capturing key data points, such as certifications and claims, and then provides open access to this data publicly.
- Ultimately, blockchain can increase the efficiency and transparency of supply chains and improve everything from monitoring the sourcing of raw materials to delivery.