Blockchain is a game changer in supply chain
Supply chain covers a wide range of activities that is involved in a flow of product and services. It is the most integral part of any business and is essential for company success and customer satisfaction. However, there are number of glitches and problems that come with supply chains.
The authenticity and quality of an asset can be a challenge because the traditional supply chains are long, complex and lack transparency therefore, is in a need for a better system to manage data.
As we evolve to adapt to newer technologies in a globalized manufacturing network, blockchain can be a game changer in terms of supply chain. A blockchain is a compilation of hashes which will help understand our material world better from access to verification and transaction. Analytic Layer converts tons of data collected into attractive renditions of the data to make it easy for brands to understand and make sense of all the data collected.
The present need for a public cloud architecture and for reduced reliance on Electronic Data Incharge (EDI) brings us to better innovative tech like blockchain.
Reduces the risk of fraud and errors
The blockchain network is decentralized to a large network of computers, each system works like a node with a shared ledger.
Any information that is encoded in a blockchain is permanently and instantly preserved. So, proof-of-work becomes a key to trusted information. All the records on the blockchain are encrypted making it completely tamper proof. Solution is truly disruptive in nature and highly scalable. For example, you can trace products from manufacturer to consumer using Blockchain technology and IoT, to record and provide tamperproof data to all stakeholders. Tools such as temperature controlled supply chains can analyze food, vaccines and other biological products.
Blockchain's transparency may also help reduce fraud for pharmaceuticals, according to a report from Deloitte. In addition to cutting losses, there's the potential to improve consumer safety and prevent some of the estimated 1 million deaths annually from counterfeit medicine, according to Deloitte.
Faster identification of issues
Most of the companies have a difficulty in meeting sudden demand changes and margin erosion, as they often struggle in procuring information within the supply chain. Since the information in a blockchain system is unbarred and its appended-only in turn being able to predict stock position preventing huge loss of sales. "
The blockchain has the potential to transform the supply chain and disrupt the way we produce, market, purchase and consume our goods. The added transparency, traceability and security to the supply chain can go a long way toward making our economies safer and much more reliable by promoting trust and honesty, and preventing the implementation of questionable practices," according to TechCrunch.
Supply chain analytics is a great example where DiscoveryIoT is helping business realize the benefits of blockchain. Combining blockchain and AI, their network is being built to be smart and it can significantly improve the transactional capability of the IoT tags. By utilizing machine learning, the nodal traffic in the blockchain can be efficiently managed making their network highly scalable. In addition, bringing their innovative solution with Cliot, an IoT tag, they can transmit location or sensor specific data to multiple devices including standard smartphones. Thereafter, this data can then be transmitted through mobile user data for performing analytics in the cloud.
Why use blockchain in a supply chain network?
Real time analysis, synchronization of decisions with supply chain are immediate which optimizes efficiency. The advantage of cutting down on intermediaries has the potential to simplify and reduce cost, by automating process elements through smart contracts. The shared infrastructure can help reduce costs within the retailers and with other parties across the supply chain.
Blockchain can also help in expanding business. Since trust is built into a smart contract, new partner possibilities can flourish and revealing new business opportunities.
Blockchain social networks will have dramatically richer and more customizable functionality, where data is protected and consumers empowered. After all, it's the tinkering, experimenting, creating and adapting that evolves technology to create great solutions.
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Sanro Mathew is a tech enthusiast with a passion for writing about emerging technologies. His current interest lies on IoT and Blockchain Technologies. Other than that, he also has a budding interest in policy affairs, conducting research and writing about it. Currently, he works as a Tech writer for a Esthan(Tech firm) based in Bangalore,India.