Most established companies worldwide run their operations on computerized enterprise resource planning (ERP) and software that helps streamline the supply chain management processes. Be it any industry or form of business, the products are tracked on the systems, and that’s how they land in various funnels to reach the potential audience. It includes the digital trading of assets, including cryptocurrency, too.
Blockchain technology and its tracking play a major role in enhancing the reliability and integrity degree in the supply chain. Also, the tracking process ensures efficiency and transparency, which become important while trading in such a volatile and risk-associated market. Hence, a blockchain track is a step further in the crypto world, which benefits all departments, including supply chain management.
Let’s learn how blockchain is doing it.
Efficiency in the Supply Chain Mechanism
Blockchain tracking helps add a better degree of efficiency to the supply chain as it helps the companies complete the buying and selling phases directly and without hiring any third party to do the same. Also, it helps facilitate the increased integration of logistics and financial services.
With such facilitation, greater data collaborations between the stakeholders are enabled, which helps the business grow and create a niche in the market.
The introduction of integrated payment solutions has helped reduce the time lapse between the ordering stage and payment processing. It helps ensure that the products in the transactions are moved properly and timely. Tracking blockchain technology and smart contracts helps companies enhance compliance standards and reduce legal fees and fines related to late payment of taxes and curbing issues like fraud and counterfeiting.
The blockchain can be integrated with radio-frequency identification tags. They use electromagnetic fields that will help in identifying and tracking the items. They are used for storing all the transaction and product-related information. Further, they ensure verification whenever the possession or ownership is transferred. Hence, you will see better automation in the supply chain. The canning is done when the product reaches its final destination. Hence, everything is covered from one end to another.
Transparent and Trustworthiness in the Supply Chain
One of the main reasons cryptocurrency trading and bitcoin received a major footfall is because it is a book of all records, as none can be erased from it. Hence, transparency is undoubtedly present in such transactions.
All the steps in the supply mechanism are logged securely, which means that even if there is an unforeseen logistic issue, it can be tracked to the source. The same stands true when sourcing the components or transaction-related raw materials. They can be traced back to their origin. It helps increase accountability and mitigate any illegal activity.
If you look at one of the related studies, you will know that the blockchain’s ability to prove the product’s provenance can help boost the global GDP by $962 billion. It can help provide crucial information regarding the manufacturer, origin, and transfer and also help establish confidence and trust in the supply chain mechanism for various kinds and transactions.
The added degree of transparency ensures that various cryptos that form a part of the blockchain network are sourced and comply with the ongoing regulations. The financial, digital, and physical information related to the blockchain is brought together, and patterns are studied. It helps the monitoring team develop different kinds of strategies that will help in combating any issues that can arise in the future.
If you look at the basic level at which blockchain technology works, you will spot a basic principle: no inventory can be available twice at the same place. So, the absence of multiple dupes is an advantage to streamlining the supply process and makes monitoring and management easier. All the status updates related to the movement and transaction from the initial spot to the end are monitored, and traceability is ensured.
The earliest implementation of blockchain technology was Bitcoin. It has triggered a lot of experimentation, especially regarding financial services. Did you know that in 2015, Nasdaq and OMX Group Inc. had worked with Chain, a blockchain setup? The idea is to pilot and test the blockchain technology that helped trade shares related to Nasdaq Private Market.
Blockchain is gaining publicity, and it is a common sight now that large corporations and startups are also exploring technological use in other industries.
If you want to explore blockchain technology and its impact on various industries, keep scrolling.
The famous company PepsiCo implemented a blockchain pilot. Its name was Project Proton. The project automated the elements related to the programmatic ads supply chain of the company with the help of smart contracts. These contracts were used to reconcile the ad impressions from various data sources that helped facilitate real-time payments through digital tokens. The result was that efficiency saw a 28% increase.
Also, if you explore the automobile industry, you will see that the Australian car manufacturer – Tomcar uses Bitcoin for the payment of some of the suppliers and accepts the cryptocurrency for payments from clients based in Israel and Taiwan. The overall process helps eliminate the need for international payment fees and related issues.
Further, you can see other companies like Walmart Canada and the diamond giant De Beers that use the technology for various purposes, resulting in a streamlined supply chain process and enhancing overall efficiency and effectiveness.
Now, you know why the tracking process is important and how it can help positively affect the supply chain management of companies and outlets belonging to different services and industries.
Blockchain tracking has gained a lot of momentum as many industries and businesses are experimenting with it and implementing it in various spheres of functioning. The tracking process does not mean that you have to keep notes of all the happenings. Instead, it means that you are monitoring the process to get timely updates that ensure legitimacy and security. Its application in the supply chain is the same. The benefits can be rendered from the network effect, and it is easier to initiate great processes and achieve the sought benefits.