Can blockchain bring the supply chain into the 21st century? | Supply Chain Management

The supply chain has existed since the industrial revolution, and little has been done to streamline its processes, particularly in the last 50 years

It has also become more than simply moving products from A to B. In today’s industry, supply chains are now more fragmented, complicated and in some cases geographically dispersed.

The 21st century has enabled more dynamic networks than ever before, with seasonal products facing a higher demand than ever, which are transported further than before. Because of this, the traditional supply chain has become outdated and can be difficult to manage. This is a problem for businesses of any size as their success will often correlate with the success of its supply chain.

 

So, how can blockchain change this?

Blockchain is everywhere. It was the buzzword of 2018, and so far, that doesn’t look set to change as we continue through 2019. However, there is still plenty of uncertainty over the technology and the benefits it can bring to different sectors and businesses, including the supply chain – a vital element for numerous organisations.

Originally developed to power bitcoin over 10 years ago, blockchain is a surprisingly straightforward concept. In a nutshell, it’s a system that records change and movement of transactions. It’s maintained across several systems that are linked to a peer-to-peer network. When it comes to the supply chain, blockchain acts as an immutable ledger within a decentralised location. Meaning that any changes in ownership or possession of goods, along with their movements from each end of the supply chain, can be recorded instantly for the greatest possible accuracy, which is essential for businesses. This increased transparency across the chain can allow for a clear understanding of the value of goods, as well as a more succinct idea of a fair and reasonable cost of each individual product. It also allows for more detailed traceability in goods from across the globe, which gives an…

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