Blockchain Technology and the Real-Time Global Supply Chain

Blockchain Technology and the Real-Time Global Supply Chain

Achieving secure, high-performance supply chains requires the marrying of performance and permissibility with the transparency and trust of blockchain technology, by combining blockchain with a proven network platform, companies today can integrate blockchain with supply chain networks.

What is Blockchain?

Blockchain has traditionally been the technology underlying the cryptocurrency Bitcoin.

Blockchain was developed as a distributed technology that maintains an ongoing, ordered record, and is a distributed, open, and immutable ledger.

Since the distribution is unique, each record is independently constructed and not centrally governed, meaning the data is an open record and duplicated to all parties within the blockchain.

Being open, anyone can read it and anyone can write to it.

Benefits of Blockchain

The major benefits of Blockchain are:

  • It allows data to be shared among multiple parties with full transparency and trust
  • Parties do not need to rely on a central authority to manage and validate data and transactions
  • It is tamper-proof, there is no way to fraudulently modify the data as it is replicated across thousands if not millions of machines.

This is a definite advantage within the supply chain, as it remains a traceable record of engagement for all transactions.

Blockchain and Supply Chain Management

The vast majority of today’s supply chains are sequential and siloed.

Since large amounts of data are copied and passed up and down the chain via batch processing, data takes a long time to propagate throughout the supply chain.

This slows down operations that are driven by the data, and causes a supply-demand mismatch, creates excess inventory, out of stocks, and high logistics costs when stock needs to be moved quickly for replenishment.

By taking the data out from behind the walls of the enterprise, Blockchain enables a near-real-time, digital supply chain with a single version of the truth.

This removes lag, speeds up the supply chain, and reduces inventory and operating costs while improving service to the end customer.

Despite the potential that Blockchain brings to the supply chain, there are challenges with using it to run the supply chain today. Read more here

Original Source:  http://www.supplychain247.com/article/blockchain_technology_and_the_supply_chain

October 25, 2018 · By One Network Enterprises

Website:  http://www.supplychain247.com

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