With the world getting more and more modernized every single day, various sophisticated technologies rise and find paths to get over into the growing economy. Blockchain in supplychain management is the one among them that helps in introducing a connection between the market and the economy, thus contributing to global trading. It assists us in bringing a smoother economy ever by managing the business supply chains efficiently in a hassle-free manner.
Supply chain management is of the utmost importance when it comes to the positioning and success of any business particularly in the food sector. Hence the food production enterprises have been increasingly finding ways to stabilize their business system as much as possible. Here is where the blockchain in supplychain management comes in to ensure long-term success just by improving the efficiency, speed, flexibility, and accuracy of the business processes.
What are all the possible complexities with the supply chains and how blockchain stands to address them?
With respect to the technological advancements in recent years, there comes a rising demand for enterprises to focus on blockchain in supplychain management. Such a demand arises in meeting the transparency and the efficiency requirements by limiting all sorts of exploitative aspects ruling the business system.
If we take a supply chain, it involves a lot of complex processes to be carried out for bringing up the end products that are made available for the consumer community. The traditional supply chain management systems are not proven to be that much effective in achieving the targeted goals and outputs as they involve manual data management or record keeping strategies that often end up with gap in communication and some other issues like lack of time and effort. This means that it will require some considerable amount of time and effort to find out exactly the source of origin of the products moving across the supply chains. Thus there are heavy possibilities for delays to happen in the conventional supply chain systems leading to a collection of errors to persist in the system thus allowing some additional expenses to come up on the way.
As an evident, let us take the recent report furnished by Oceana, a seafood product supplying organization has its products found to be mislabeled to more than around 43%. The paper-based manual record-keeping seems to be the major cause for this complexity as it paves way for a lot of mistakes to occur in the system by lowering the associated transparency rates.
Moreover, there are also some possibilities for inaccurate data to be entered in the freight shipping invoices. Thus it is very much tough to get into the actual value of products flowing across a supply chain. So, to meet the ethical and quality standards of a business, it is very much vital to address the counterfeiting issues that arise at the time of trading the products or services.
Approximately around 3.3% of the total world’s trade contributes to illegal issues and this depicts that the supply chains are under a huge threat these days. So, we all need to track the exact way of overcoming these illegal practices by introducing legalization in the aspects driving the product supply in the value chains. This could be made happen with the technology none other than blockchain.
How the supply chain blockchain is beneficial for the food enterprises?
Supply chain blockchain solutions are actually a credit for the food production companies as they are about to incorporate the following key features in the supply chain systems:
- Traceability: Tracing out the sourcing information of products flowing in the supply chains in a detailed and comprehensive manner right at each and every point of the network. This means that the information is sourced right from the phase of production and supply to the end consumption (sale).
- Transparency: The information sourced via traceability is stored in the public ledger of blockchain and is made open for all the participants of the network, thus making the information available for access by all.
- Immutability: The information once caught and stored in the blockchain ledger can never ever be changed or edited or replaced; this could help control the exploitative behaviours that are possible with the supply chain systems.
- Decentralization: The means of eliminating the third – party or middlemen interventions can be achieved via this supreme feature; this could help reduce the overall system operating costs.
All the above mentioned aspects account for the improvement of the supply chains since they have a direct impact over bringing an enhanced level of efficiency in the chains.
Apart from all these, blockchain in supplychain management makes us identify the root cause and the point through which the inefficiencies occur, thereby cutting out all the wasteful inefficiencies out of the system. By the way, the costs can be cut down to some extent as desired. Also, all the processes inclusive of the product purchase activities and the appropriate details get automated in the supply chains via blockchain intrusion. Manual errors are not at all possible here as there are no human interferences entertained.
Tracefood, being a leading food traceability partner can help you guys come out with excellent supply chain blockchain development strategies that will work well in bringing absolute traceability in your supply chain venture operations. Thus you could be able to ensure quality assurance and performance with no considerable deviations. We could help you in focusing on how and where to meet your business quality and corporate standards by vanishing out all the corresponding issues in the business system. By the way, the levels of trust, credibility, and reputation can be improved to the best levels ever.
As a whole, our blockchain in supplychain management solutions could help deter fraudulence and counterfeiting issues