Supply Chain has been immensely broken, unorganised and ripe for change. You can understand its impact by evaluating that for every US$1 in sales, the retailers have to maintain US$1.43 in stock. This could lead to a lot of inventory simply lying idle without any major contribution towards building a sustainable supply chain. At the time of writing, the global supply chain system is going through sourcing, overstocking, siloed data, poor technology, low visibility and lack of planning bottlenecks. Having said that, the sector is ready to embrace disruptive transformation and blockchain is delivering on the following aspects;
Table of Contents
Establishing Ethical Sourcing
The farm to fork trust deficit elements surface when you realize that adulterated stuff is served on your platter. Blockchain, as a decentralized ledger technology presents a linear movement or product journey that is time stamped and immutable to evoke trust among consumers. With that said, you can simply verify everything on-chain to track the product journey before you consume them. In this way, it is establishing ethical standards in selling and consumption.
Product Recalls
Suppliers are looking for a technology that can help them eliminate challenges in the supply chain. For example, when retailers are aware of the lag or inefficiency in the product journey at a specific level, they can eliminate that from the supply chain and help build a sustaining ecosystem built on top of trust. Blockchain technology can help find that out in the circulation.
Fraud Prevention
Fraud is rampant in the global supply chain. There’s no way to track whether it is a Rolex or a Folex that you have bought after paying US$10,000. In the market, there’s a greater chance to counterfeit consumables like wine. Blockchain can time-stamp and track the goods movement using the RFID tags. With that being said, users can easily track the goods in circulation and make data driven decisions to influence their purchase.
Conclusion
Technology will not only protect the customer side but even the supplier side to build a sustainable supply chain. Blockchain has just envisaged a way out that could be transforming supply chain for an advanced future ahead.
Connect With Bloctics:
FaceBook | Twitter | LinkedIn | Reddit