Blockchain and IoT Technology Revolutionizing Supply Chain Management
Supply chain management is a huge and complicated field to work into and is full of obstacles. Globalization and global connectivity is a major issue which makes it very complex.
Blockchain technology has great potential to serve and solve complex problems in Supply chain management. You can manage and store supply chain data and makes smooth autonomous transactions.
Blockchain is a secured and distributed digital ledger which ensures client transparency and data security.
How is Blockchain associated to Supply Chain?
Blockchain is a protected and distributed ledger system. The ledger uses a series of blocks to maintain the transaction directory. It exists in multiple copies extended over multiple computers and is known as Nodes.
What is the Internet of things (IoT) in Blockchain?
Internet of Things is basically the current concept of always-online, data collecting devices into your personal lives and work life. Blockchain is a fully encrypted and shared computer filing system. It is designed to keep tamper-proof and real-time records securely.
Risks related to Supply Chain Mangement :
- Sudden Demand changes
- Reduction in Margin
- Strings of cause and effect due to the lengthy value chain.
- Lack of end-end visibility.
- Discontinuance of Technologies.
This are the major problems the Supply Chain industry is facing for years.
How Supply Chain is being Transformed by Blockchain?
Blockchain being a secure and distributed ledger can act as a shared data layer to allow multiple parties to track the status of a product as it moves across a protective chain and shares information on its origin. Blockchain is useful to maintain transparency and create trust.
The best blockchain development platform is Hyperledger for the supply chain management.
Hyperledger is an open-source combined effort build to enhance cross-industry blockchain technologies.
Code for an ideal Supply chain
1. End-to-End visibility – Observing supply chain events and identifies issues more energetically is to increase the efficiency of the supply chain and trackability.
2. Control – Maintaining the policy guidelines and mechanism control are of major importance
3. Complete Trust – This will help stakeholders trust the unified security system which collects and produce authentic information.
4. Flexibility – The capacity to comply with and respond to problems with less impact on operational costs is needed to stay ambitious and focus in the industry.
Blockchain and IoT revolutionizing Supply Chain Management
Blockchain Technology and IoT can accelerate supply chain management to the next level. Blockchain has helped in eliminating mediators and has changed the way of the transportation process.
Now multiple sensors are in use to maintain location, food storage conditions, the delivery process by steps and most importantly its distribution system make it unique.
You as a supply chain manager can easily keep and track records of the business data and find out any data that is needed instantly.You can see the product being dispatched from manufacturing house and its overall movement and time took specifically till completing the task. All the whereabouts of a single product can easily be fetched and used in seconds.
Blockchain is basically based on cryptographic algorithms designed to prevent data misuse. Each block includes a hash to the past block, which makes it impossible to create an alternative copy of the block in -between in the ledger. This solves half of the security problems in IoT.
Blockchain and IoT can basically reduce loads of paperwork if combined and used efficiently.Most of the companies still follow the traditional rules of doing business where paperwork is given strong importance.
Movement of a container from a place to another needs many people and involves several interactions between them but blockchain and IoT can remove paperwork problems.
Thus,it can capacitate cross-border shipping, maintaining transaction records, information flows saving labor costs and ensuring data security.
Deducing the superiority of Blockchain and IoT
Blockchain is seen as a substitute for cloud services and reduces the complications of incorporating and maintaining IoT results. Customers today are mainly concerned about timely deliveries and reasonable fair transportation. The companies are constantly working on tracking records and transparency.This technology is adapting to various ways to improve data analysis, ledger entries and even automation.
As you have understood, Blockchain and IoT have the ability to bring innovation and changes to supply chain management. This can reduce frauds and enhance security measures and speed across a wide range of applications.