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HOW CAN BLOCKCHAIN SUPPLY CHAIN SOLUTIONS DRIVE TRANSPARENCY AND REDEFINE MANUFACTURING?

Companies today need to be agile, flexible, and responsive to survive. Those that drive continuous innovation throughout their businesses and supply chains – and differentiate themselves in a highly competitive market by remaining dynamic and relevant – are the ones that succeed. As the pace of change accelerates, improving the efficiency and transparency of your organization’s supply chain becomes critical. Fortunately, blockchain technology can help simplify the process. 

With the rise of blockchain publicity, large corporations and startups are exploring ways to use the technology outside of the financial sector. Many organizations are already experimenting with blockchain innovations to fulfil a range of needs. 

Blockchain technology can be used to simplify supply chain operations and improve traceability while reducing administrative costs. This leads to increased supply chain transparency, low cost of production, and reduction in risk factors across the supply chain. To be specific, blockchain in supply chain can deliver the following key benefits:

Track and Trace Mechanism in Blockchain Technology

Blockchain for supply chain can enable transparent and accurate end-to-end tracking in the supply chain. In a blockchain supply chain, participants will be able to record information such as price, date, location, quality, certification, and other relevant details to manage the supply chain more effectively. This information can be made available via blockchain, increasing the traceability and compliance of materials throughout the supply chain. It will also improve the visibility and compliance over outsourced contract manufacturing, and potentially enhance an organization’s position as a leader in responsible manufacturing. In the process, corporate standards are met by increasing the traceability of the material supply chain.

Blockchain is Effective To Reduce Counterfeiting

Blockchain in supply chain management can drive increased supply chain transparency to help reduce fraud for high-value goods such as diamonds, and pharmaceutical drugs. Supply chain blockchains could help companies understand how ingredients and finished goods are passed through each subcontractor and reduce profit losses from counterfeit and grey market trading, as well as increase confidence in end-market users by reducing or eliminating the impact of counterfeit products.

Blockchain Supply Chain Solutions for Better Warranty Management

Companies can digitize physical assets and create immutable records of all transactions, enabling them to track assets from production to delivery or use by end-users. This increased supply chain transparency provides more visibility to both businesses and consumers. This will help warranty providers to validate the claim and the warranty status anytime. On the consumer side, these specific details would make it extremely easy to detect counterfeits as the counterfeits would fail to show the expected transition history through the supply chain of original manufacturers, distributors, and sellers. The detailed history of the product alongside its parts throughout the value chain would also help the manufacturer to make decisions on warranty claims.

Blockchain Technology for Administrative Efficiency

Finally, managing the supply chain using blockchain technology can streamline administrative processes by enabling an effective audit of supply chain data. Processes involving manual checks for compliance or credit purposes that may currently take weeks can be accelerated through a distributed ledger of all relevant information. It will also strengthen corporate reputation by providing transparency of materials used in the products. On a macro level, it will improve brand credibility and public trust in the data shared. Blockchain will also aid marketing efforts by reducing potential public relations risk from supply chain malpractice. 

Furthermore, businesses can maintain more control over outsourced contract manufacturing. Each party within a supply chain has access to the same information via blockchain, potentially reducing communication or transfer errors. Validating data can be done in less time so that more time can be spent on delivering goods and services – either improving quality or reducing cost.

Conclusion

By increasing supply chain transparency, reducing risks, and improving efficiency, blockchain-driven innovations have the potential to generate significant business value. Companies should keep an eye on their industry’s players who have begun experimenting with blockchain. It is easier for others to jump on the bandwagon and achieve the benefits of blockchain.  For indications of when to develop a blockchain prototype, companies could track other stakeholders in their supply chain.

To know more about the multiple aspects of blockchain technology and its real-world dynamics, read our other informational blogs. If you are looking to improve your supply chain or business through blockchain solutions, click on the button below to connect with our blockchain experts.

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