Skip to content
Article

How blockchain can be used to improve supply chain management?

Written by Hellen Jons

Topic: Health Products and ServicesPublished November 19, 2021
No ratings yet832 viewsSign in to rate
supply chain management can turn into a boon for various sectors by improving factors such as supply chain transparency, risk, efficiency, and the altruistic development of supply chain management. Primary potential benefits: Apart from improved transparency in the supply chain and having to pay a lesser price for several amenities blockchain has several other benefits like the primary potential benefits and the secondary potential benefits. The primary potential benefits include better and improved traceability of material supply chain which works towards improved corporate standards, reduced losses due to counterfeit/gray market trading, better visibility and compliance, lesser paperwork, and administrative costs cut down. Secondary potential benefits: The secondary potential benefits include improved corporate reputation due to improved transparency of the raw material used in manufacturing the products, better creditability over the data that is shared with the public, lesser risk of the effects of supply chain malpractice on potential public relations risk, better end to end via stakeholder blockchain, digitization of physical assets and decentralization of the records of transactions. All of this makes tracking down the products and assets easier. From the point a product is manufactured, till it is sold to its final customer, it can be traced at any point in the supply chain. Eliminating the fraud from supply chain management: In the previous paragraphs, we have learned how blockchain can be employed to increase the transparency factor in a supply chain which will therefore help in reducing the malpractices such as the fraud involved in pricey goods like diamonds and drugs. Blockchain can also be employed to give the companies a better understanding of the different materials and finishes materials that go into making a product and how gray markets often play the middleman who sweeps away the profit in these cases. Once the companies develop a better understanding of these they can easily prevent counterfeiting. Conclusion: The most recent developments in supply chain management hint towards the bright future to come. Blockchain is another strong contender in the list and experts believe that if more and more firms and pharmaceuticals look forward to coupling blockchain technology with supply chain management, we might actually be able to bring about a revolution. There are several benefits of employing blockchain in the different sectors. The primary benefits include better and improved traceability of material supply chain which works towards improved corporate standards, reduced losses due to counterfeit/gray market trading, better visibility, etc. The secondary benefits include improved corporate reputation due to improved transparency of the raw material used in manufacturing the products, better creditability over the data that is shared with the public, lesser risk of the effects of supply chain malpractice on potential public relations risk, better end to end via stakeholder blockchain, etc.

Article author

About the Author

Supply chain management has been presenting some of the most promising trends across the globe lately. Experts believe that the trends to come if coupled with the right technology can lead to one of the most sought-after opportunities in the near future.