What is Supply Chain Management?
Supply chain management includes integrated planning as well as the execution of different processes within the supply chain. The core processes of supply chain management is the: Data flow, material information flow
Supply chain management is the management of the flow of goods, services, and information involving the storage and movement of raw materials, building products, and full-fledged finished goods from one point to another.
What is blockchain technology?
A blockchain is, in the simplest of terms, a time-stamped series of an immutable record of data that is managed by a cluster of computers not owned by any single entity. Each of these blocks of data (i.e. block) are secured and bound to each other using cryptographic principles (i.e. chain).
There are three core properties that make the blockchain unique
- Decentralization
- Immutable
- Transparency
Every time a product changes hands, the transaction could be documented in the blockchain, creating a permanent history of a product, from manufacture to sale. What this does, is that it reduces:
- Time Delays
- Human Error
- Added Costs
- Product theft
- No Transparency between parties
How blockchain improves the current system ?
Reduced the time to delivery. Since shippers can immediately identify product location and cost to ship to a consumer, the overall time to delivery decreases. This is the result of changing shipment origin to a location nearer to the destination. As new technologies, like drone delivery, take flight, less time to delivery will be essential to using such technologies effectively.
Blockchain’s transparency helps in the careful documentation of a product’s journey from its point of origin to all its suppliers. This increases the trust among the various parties in the supply chain because all the data is visible for everyone to see.
The blockchain network can take in any and all participants of the supply chain network. Plus, regardless of their geographical location, everybody will be able to connect with the blockchain.
Blockchain’s immutability will make sure that all the records in the chain are honest and free from corruption. Plus, the strong security from its innate cryptography will eliminate unnecessary audits, saving copious amounts of time and money.
The utilization of blockchain also opens up the doors to future innovation.