Does the supply chain industry have a place for blockchain ?

What are the gaps in Supply chain management?

It took 6 days, 18 hours and 26 minutes, when the Vice President of retail giant Walmart asked his supply chain management team to trace a packet of sliced mangos in one of their stores to its origin source. The same information was retrieved in 2.2 seconds when they integrated a blockchain product, Hyperledger Fabric in their supply chain operations.

You must be wondering does the shorter duration really make a difference? Well, timely identification of issues and finding alternatives is what summaries a major chunk of a supply chain leader’s job. To understand the applications of blockchain in supply chain management, first let us understand the basics.

What is blockchain?

Blockchain is a digital way to record transactions, they are secure, immutable and verified by all parties involved. The transactions are stored in blocks and the information present in each block is easily visible to all parties.

How can Blockchain help?

The multi-stakeholder nature of supply chains exposes them to numerous external risks, such as natural disasters, fraud, adulteration, geopolitical issues, operational failures, and logistics disruptions. However, these threats can be broadly mitigated through three key strategies:

Transparency and Enhanced Visibility: Blockchain provides a decentralized ledger, ensuring that all participants have real-time access to data, improving transparency.

Validation and Improved Trust: Through immutable records and smart contracts, blockchain enhances trust among stakeholders by ensuring that all transactions are verifiable and tamper-proof.

Traceability and Data Capture: Blockchain enables end-to-end traceability, recording every transaction, which helps in tracking the origin and journey of products, thus ensuring quality and compliance.

Closing thoughts

Blockchain technology holds transformative potential for supply chain management (SCM). By providing unprecedented transparency, validation, and traceability, blockchain addresses key vulnerabilities in traditional supply chains, such as fraud, inefficiencies, and lack of trust among stakeholders. Implementing blockchain can lead to more efficient, secure, and reliable supply chains, enhancing overall operational effectiveness.