Know The 6 Key Benefits Of Having Supply Chain With Blockchain
Blockchain is the technology behind Bitcoin and other cryptocurrencies. Blockchain is a protocol for a digital ledger that enables proof of ownership and the transfer of ownership from one entity to another without using a trusted third party intermediary (like a bank). The value that is transferred can also move through an extended supply chain while ensuring that what occurs at each point in the chain can be chronologically recorded. Traceability And Transparency Are Some Of The Most Important Foundations Of Logistics Blockchain offers a shared ledger that is updated and validated in real time with each network participant. It enables equal visibility of activities and reveals where an asset is at any point in time, who owns it and what condition it’s in. Following are some of the benefits of using Blockchain Technology in Supply Chain:- Reduce Or Eliminate Fraud And Errors Using blockchain in the supply chain has the potential to improve supply chain transparency and traceability as well as reduce administrative costs. A blockchain supply chain can help participants record price, date, location, quality, certification, and other relevant information to more effectively manage the supply chain. The availability of this information within the blockchain can increase traceability of material supply chain, lower losses from the counterfeit and gray market, improve visibility and compliance over outsourced contract manufacturing, and potentially enhance an organization’s position as a leader in responsible manufacturing. Improve Inventory Management Blockchain implementation in Supply Chain can increase Warehouse management and logistics efficiency, avoiding over-stocking and streamlining waste reduction. Traditionally, participants in a supply chain contact only the people they deal with directly. The person at the start probably won’t know what’s going on at the end. However, if everyone has access to the same information, there will be increased visibility of order status, leading to more proactive management of inventory allocation. Minimize Courier Costs A manufacturing plant must coordinate effectively with multiple third-party logistics, rail, shipping, and trucking companies to ensure the timely delivery of new vehicles to importers and dealer groups around the world. A Blockchain based system connected with IoT sensors and smart devices would provide permission parties in the outbound chain with an accurate and transparent end-to-end view of vehicle location and status; improving just-in-time logistics, reducing erroneous orders and lost or damaged vehicles, optimizing inventory levels and raising inventory turns. As a result, importers, dealer groups and other bulk purchasers of vehicles will benefit from reduced lead times for build-to-stock and build-to-order vehicles; value which they, in turn, can pass on to their customers.