Blockchain and Supply Chain #24
Crypto and Blockchain Talk #24
The Supply Chain is a system of processes, people, activities, information, and resources needed to move a product from the manufacturer to the consumer. The supply chain is essentially the process of natural resources and raw materials to a final product that is delivered to the consumer. This process involves all of the suppliers, manufacturers, and companies that assemble the products and deliver them to the end customer – which is you.
Problems with current Supply Chain
Supply chain at the moment is long on data and short on trust. Significant lack of transparency generates constant suspicion of illegal and unethical practices. Companies are so keen on keeping their information private, without even seeing the damage they are doing to the trust between them, their suppliers and vendors. Building a strong relationship between parties starts with mutual respect, benefits, honesty, and trust.
For supply chain management to work effectively, enterprises need to track the movement of the raw materials that are needed to create the products, optimize their inventory levels to reduce costs, and synchronize their supply with customer demand.
Companies with international supply chains have to consider different cultures, preferences and legal frameworks. There are risks of losing control, oversight, and mismanagement over inventory when the supply chain is taken lightly.
Main features that blockchain integration gives to supply chain:
Transparency, Traceability, Security, Automation, Immutability
Blockchain technology can change most industries, and supply chain management is one of the more obvious uses for this technology. Supply chain management provides enterprises, especially manufacturers, with tremendous competitive and business advantages. Adding blockchain to the mix will make your business more competitive, transparent, secure, tracable, and above all, trustworthy.
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