The concept of blockchain is quickly gaining ground and is touted for revolutionizing supply chain management due to the benefits including; increased transparency, security and efficiency. A blockchain is a shared database that maintains a growing list of records, which are called blocks, and is distributed across multiple computers such that each node in the blockchain has the same copy of the data, and it is difficult to alter the data recorded in the ledger once it has been entered.
Another significant advantage of blockchain in the supply chain is the capability of having a record of where each product was since its production. They enable an ability akin to live monitoring of products from the time that they are produced to the time that they are used. This level of transparency is very useful in ascertaining the originality of products, combating various scams and ensuring that products meet the set quality parameters. For instance, consumers can use a smartphone and a QR code scanned on a product to obtain its pedigree right from the producer to dictate the product’s authenticity, and/or ethical credentials.
Further, through smart contracts which are part of the blockchain technology, the use of block changes also increases efficiency by reading and executing tasks automatically. These smart contracts execute specific clauses of contracts in an automated way without the need for intermediaries and possible human-related mistakes.
It also enhances the security aspect by registering transactions through chains where no one can alter the information that has been put online. This also aids in easily tracking certain characteristics like the malevolent introduction of counterfeit products or unauthorised changes in the supply chain.
While blockchain applicability will only expand, its adoption into supply chain management contributes to making operations more efficient, establishing trust among supply chain stakeholders, and promoting more sustainable and ethical operations.
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