How blockchain technology is used in supply chain management?
To trace the activities along the supply chain more efficiently, concerned parties can access price, date, origin, quality, certification, destination and other pertinent information using blockchain.
Traceability, as used in the supply chain sector, is the capacity to pinpoint the previous and current locations of inventory and a record of product custody. It involves tracking products as they move through a convoluted process, from raw materials to merchants and customers, after passing through many geographic zones.
Traceability is one of the significant benefits of blockchain-driven supply chain innovations. As blockchain consists of decentralized open-source ledgers recording data, which is replicable among users, transactions happen in real-time.
As a result, the blockchain can build a supply chain that is smarter and more secure since it allows for the tracking of products through a robust audit trail with almost concurrent visibility.
By connecting supply chain networks through a decentralized system, blockchain has the potential to enable frictionless movement between suppliers and manufacturers.
Furthermore, producers and distributors can securely record information such as the nutritional value of items, product origin and quality and the presence of any allergens using a collaborative blockchain network. In addition, having access to a product’s history gives buyers more assurance that the items they buy are from moral producers, thus making supply chains sustainable.
On the contrary, if any health concern or non-compliance with the safety standards is discovered, necessary action can be taken against the manufacturer based on the traceability details stored on the distributed ledger.