Why should supply chain work with blockchain technology?

Can blockchain make supply chains more transparent and trustworthy?

Shifting towards the globalized world, supply chains are becoming more complex, inefficient, and expensive due to their involvement with many intermediaries. The process of supply chain includes the collaborative system between product sources, merchant and finally, the customers. However, this system often lacks transparency between stakeholders and thus, its involvement with too many intermediaries makes the sector itself difficult to trace. By the end of the product line, end users might not be able to know the origin of the items. With this lack of traceability, there is no trusted way for the product to be verified of its authenticity. This can lead to fraud and mismanagement and eventually prevent buyers from trusting the goods.

However, this issue can be resolved by integrating blockchain technology into the industry.

Traceability Blockchain

Why should suppliers work with blockchain technology?

There are three main benefit that blockchain can help disrupt the supply chain sector:

  • Enhancement in product traceability and provenance.
  • Reduction of data disruption.
  • Increase in working speed and efficiency.


Blockchain enhances traceability and provenance

Blockchain can be utilized as a digital record-keeping technology. Once the data is on to the network, it is immutable and transparent. This means that no one can alter the information uploaded on the blockchain thanks to the hashing technique. It is important that this data is recorded in the form of a hash – a unique value given to the file.

With such characteristic, blockchain technology provides the industry with an accurate end-to-end tracking system. Companies can digitalize their physical assets, record this data into the blockchain, then, any products can be traced to their origin or to any stages of the supply chain.

According to research, 79% consumers agree on the importance of a verifiable authenticity for brand. Additionally, 71% buyers are willing to pay additional costs for companies that offer full transparency and traceability in their products. This means that product transparency can show a prominent sales result for enterprises.

 

Blockchain reduces data disruptions

Using the distributed ledger technology, supply chain can easily manage their product line and spot any disruptions. Managers can access an online data platform and upload shipment information to the blockchain. Once data is registered on the network, it is immutable and thus can be seen in the decentralized network. Suppliers can verify transactions using audits, preventing any planted duplicates.

Furthermore, blockchain network is a safe and secured platform. Its hashing technique in addition to a fully decentralized network makes blockchain impossible to be hacked. This makes blockchain a perfect platform for data recording and storing.

 

 

Blockchain increases speed and efficiency

Companies can increase their work efficiency between different suppliers by maintaining control over all contract manufacturing. Blockchain technology can provide data access to all stakeholders which will reduce communication or transaction errors. All parties will save time to validate information, while reducing costs of errors. Thus, the technology can decrease administrative costs while increasing production speed by replacing paperwork with smart contracts and transactions recorded on the blockchain. Blockchain can also help the process of co-planning from different parties, as well as help forecast sharing between all the suppliers and customers.

  Separation block

How to implement blockchain technology to your business?

Working with blockchain can have many benefits, however, this complex technology can be very difficult and expensive to integrate. Companies must consider the cost and effort to hire blockchain developers and experts to help build your technology framework and infrastructure. Moreover, the prices of sending transactions on blockchain are not stable and thus differ between networks. However, companies can avoid all of these complexities and extra cost by working with a scalable blockchain solution like BLOOCK.

BLOOCK is a layer 2 scaling solution for blockchain data recording. As we work on Ethereum, our users are provided with benefit from a high traffic permissionless blockchain network.

  • Decentralized ecosystems
  • Transparency in transaction
  • Immutable data
 

Additionally, BLOOCK can improve the transaction processing rate as well as lower the total gas fees. Our solution focuses on helping companies to record their data onto Ethereum network without the complexity of blockchain integration. As our digital space grows, the need to secure and control your data is urgent. In the supply chain sector, organizations have enormous proportions of information, spread across many intermediaries and different stakeholders. Therefore, suppliers need to take action and normalize data recording and storage as the primary platform. Working with BLOOCK, the supply chain is guaranteed high scalability, extreme privacy and easy adaptability to your existing IT infrastructure.

 

To further understand how BLOOCK and disrupt your business, contact us at hello@bloock.com or book a demo with us.

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