How Blockchain is Disrupting the Supply Chain Industry?
Retail industries have constantly experienced technological advancements so that big companies like Amazon, Uber can carry out their backend processes easily. Smart digital stores are leveraging advanced technology which helps companies to keep a record of goods, sales, purchase, returned items and more. Various Industries are now harnessing the power of machine learning, voice recognition, artificial intelligence, and Chatbots. Blockchain in specific has resulted in disrupting supply chain operations of retail industries. It offers these industries more transparency and traceability with which these companies can eradicate issue timely. Blockchain technology delivers value and trust to the customers which ultimately results in an increasing demand for the products. An increase in demand will ultimately affect the supply of the products.
Blockchain technology has enabled real-time product tracking with which companies have experienced a reduction in overall cost of moving items. In Digital Supply Chain Institute (DSCI) and APQC survey, it found that one-third of the workers experienced reduced cost since the time it introduced them to the blockchain technology. Reduction in cost happened because it linked administrative tasks with blockchain technology. Blockchain applications resulted in speeding up the administrative processes which automatically reduced the cost. Blockchain has also reduced the work of middlemen and intermediaries so that the risk of frauds and duplicacy gets reduced. Blockchain allows suppliers and customers to do the transactions via cryptocurrencies instead of EDI.
Enhanced Inventory Management
The supply chain is a complex process to handle. For, keeping a record of every transaction companies earlier had to hire a group of people assigned for maintaining records. In large-scale industries, even the labor force had to face problems with keeping up with the records. Blockchain allows companies to keep a record of every single transaction so that managing of goods becomes easier. Blockchain technology allows companies to connect with suppliers, distribution centers, production sites, and retail partners with ease. The people connected throughout the production process can access information that is recorded via blockchain. Since every person here has a copy of the information with them there, the chances of disruption or confusion become negligible.
Improved Data Security
Earlier people used to do sorting and production tasks manually. This process was not only laborious but risky. Risky because workers were given tasks of maintaining records of invoices and contract details. This confidential information was comparatively easier to pass on to competitors especially when the ways were traditional. With Blockchain app development solutions companies can keep the floating information secured using cryptography techniques. It also ensures that the company’s private data is never hacked.
Automated Supplier Payments
Blockchain fund transferring differs from traditional banking methods. It facilitates the transferring of funds to different corners of the world. With blockchain solutions transferring of funds is quick and easy. Whatever transaction that gets progressed through blockchain technology happens between the payer and the payee. The transferring of funds that happens using blockchain technology are quick and easy and helps you save plenty of time. It is also safe as it directly reaches to the desired receiver.
Most of the time seafood supply chain management has been in the eyes because of the unavailability of a transparent system. The latest seafood supply chain has boring procedures like manual record tracking. Other issues making seafood supply chain management ineffective are inappropriate conditions of food storage, fraud through incorrect labeling, and acceptance of non-supervised practices. Because of these problems, the safety and quality of the food which has to reach the consumer is degraded. It’s a threat to the economic sustainability of the industry. In addition, various types of frauds are part of this chain, major reason why trust between vendors and consumers is lacking.
Blockchain technology has proved as a perfect solution to the issues of seafood authorization. With this method, one can easily track seafood from its production to the distribution. Hyperledger has already started implementing this technology in their recent projects to solve problems regarding the seafood supply chain industry.
Hyperledger Sawtooth is transforming the supply chain by getting accountability and traceability through it’s from its modular blockchain platform. PoET algorithm which stands for proof of elapsed time lets actors of the system reach consensus in the ecosystem. Here, related parties are not aware of each other’s information. It enables seafood to get identified in the supply chain with sensors that help in fetching time and location of the goods to the blockchain. It lets consumer access inclusive records of the product’s origin. The consumer can easily know about the quantity and quality of the available products. They can have a track on how many numbers of fish and seafood are available and from how many days it’s been in the inventory.
Enhanced Customer Engagement
The blockchain technology helps in quickly analyzing the data for creating forecasts and predictions, useful for solving a lot of purpose in the supply chain. The analytics collected through blockchain helps in boosting customer satisfaction. Retail companies can use blockchain database to help them find out ways of building a delivery timeline. A delivery timeline is very impactful when it comes to delivering products. With this product reach to customers on time.
Customers can also make use of blockchain data but this access is available only to a few people. Sharing data helps in creating transparency, which results in gaining the trust of customers, creating loyalty and building long-lasting relations with them. Raised trust helps in getting more business which ultimately becomes one of the prime reasons for increasing revenues.
Various industries have started leveraging the blockchain benefits. Apart from retail stores, it is equally beneficial for industries like real-estates, healthcare centers, transportation, banking sectors, and more. Apart from managing data blockchain takes care of million other tasks that happen on a regular basis. If your industry demands to adopt a futuristic technology then get in touch with industry experts. A well-known blockchain app development company have expertise in offering top-notch app development solutions, cryptocurrency development solutions to business houses.