From supply chain to Blockchain
The supply chain is the end-to-end process to create value in a company. Starting from the productive process, passing through logistics and ending in distribution. This is the most important action that has a company to create value and change it usefully. That’s why, over the years, new technologies will emerge to have more accurate records, get metrics to efficit the process and detect errors.Although all of these tools are of utmost utility, the natural technology is to constantly advance and to supply chain is no exception.[caption id="attachment_ 11242" align="aligncenter" width="300"]
Diagram of supply chain management illustration[/caption]Some ways how the block chain can help the supply chain are:
- Trackability: Blockchain can allow transparent and real-time monitoring of products and materials throughout the supply chain. This helps to detect and prevent any fraud, counterfeiting and guarantees the authenticity of the products.
- Global Supply Chain Management: The supply chain often involves multiple actors in different geographical locations. Blockchain can provide a decentralized platform to coordinate and manage information among all participants, which facilitates faster and more accurate communication.
- Inventory optimization: Blockchain can improve inventory visibility in real time, which helps reduce costs and avoid excess or lack of stock in the supply chain.
- Sustainability and social responsibility: Blockchain can track and verify sustainable product processes and practices, enabling consumers to make more informed decisions and foster corporate social responsibility, in addition, add a value added to the product.
Examples of Existing Support
Although blockchain technology is something modern and, in some cases, its applicability seems futuristic, there are several successful cases of companies that are already applying to improve their supply chain. Then we will briefly appoint 3 of them:- IBM: They were associated with Walmart to develop the Food Trust project, which uses blockchain technology to track and authenticate products in its food supply chain. This allows precise monitoring of the origin and quality of the products, which in turn helps to quickly identify any food security problem and take appropriate measures.
- VeChain: It is a company that uses blockchain technology to improve supply chain management. Its platform allows you to track and authenticate products across the supply chain, providing greater transparency and trust for both companies and consumers. VeChain was associated with several companies, including luxury brands and pharmaceutical companies, to implement real-time product tracking and authentication solutions. This helps to prevent counterfeiting and guarantees the quality and authenticity of products from their origin to the final consumer.
- From Beers: The diamond company De Beers uses blockchain technology to track the provenance of diamonds from its extraction to its consumer sale. This helps to ensure the authenticity and ethics of your products, as it prevents the marketing of diamonds from conflicting zones. Consumers can check the history of each diamond through a transparent blockchain-based system.
Blockchain illustration
Challenge and Considerations
When it comes to improving supply chain management through the adoption of blockchain technology, companies must take into account that it is not a process that occurs from night to morning. There are three main variables that influence this process:- Costs: The adoption of blockchain technology can be costly. Given that this technology is constantly developing and sometimes there is a greater demand that offer (particularly in ascending periods), implementation costs can be significantly high. This is due to the need to hire specialized developers and perform high-value code audits to ensure the elimination of possible errors.
- Interoperability: Interoperability between different blockchains has been one of the most significant challenges in developing blockchain technology. Two systems that use different block chains can only be integrated if they are compatible with the same chain, otherwise integration is not possible. This problem can hinder the creation of complex and unified systems in the management of the supply chain.
- EducationAlthough he talked a lot about blockchain technology, his adoption curve has not yet reached its peak. This means that for workers from different industries, understanding and using this technology can be a challenge. The lack of understanding of how blockchain technology works and how it integrates into business processes can delay its effective adoption in supply chain management.
The Future of the Chain of Suminions with Blockchain
In the future of the supply chain, blockchain is seen as a transformer, providing real-time transparency of all operational steps. However, its success depends on the collaboration between chain actors, establishing shared standards that ensure interoperability. In addition, education is crucial, as deep understanding of how to effectively integrate this technology into existing processes is essential to harness its benefits. Finally, the successful adoption of blockchain in the supply chain will depend on the combination of collaboration and continuous education.
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