The Blockchain technology is largely associated with the financial sector but its distributed ledger functionalities can be extended to other industries as well. Its successful approach to security has made it a valuable asset to companies that are looking for technologies that help them maintain data securely.
When it comes to the manufacturing industry, there are a lot of speculation as to how blockchain can help it transform and make the processes simpler and more secure. A supply chain is a web that includes a span of multiple stages and geographical locations, making it difficult to track and trace the identity of a particular item. The blockchain is the answer to such problems.
In this article, we will highlight the main benefits of implementing the blockchain technology in the supply chain network.
As data stored within a blockchain is decentralized and shared across different blocks or nodes, it can be used to create and maintain a shared and continually-reconciled supplier database.
Blockchain provides a completely new way of tracking a product’s journey, right from the point it is manufactured to the point it reaches the end user.
The complete information of what materials have arrived, who handled it, how was it transported can be recorded in the blocks or nodes of the blockchain. This allows an excellent audit trail and real-time visibility and tracking for supply chain partners.
The process provides assurance to every party involved, ensuring security and building trust in the entire network.
It provides complete transparency. Blockchain opens up a completely new way of tracking product journeys, providing a solid audit trail and real-time visibility for verified supply chain partners.y and any disturbance in the network can be tracked down in real-time.
Managing an extended and complex network and provide a key access to its information is something that blockchain can help achieve. Speed and Information combined can help companies make an informed decision.
Blockchain can help facilitate a continuous flow of information that initiates automation, adds value, improve workflow and analytics and deliver useful insights. It handles the latency challenges we face in traditional approaches.
With the help of this technology, the entire supply chain network can be summed up without any interference and fraudulent activity involved.
There is no doubt that the manufacturing industry will benefit the most out of blockchain and in no time it will be an integral part of every supply chain network. The process of it being a part of an organization’s business model has already started. It is just about time we see the network grow.
Abhishek Prasad is the Director, Head of Digital Transformation at Aexonic Technologies. He has been a Management Consultant, with the first-hand experience of how technology can drive business change. Worked with Big Four accounting firm, he is experienced in advanced analytics and reporting within the professional services, Life Science, Utilities, and banking industries. Abhishek has consulted with multiple fortune 100 companies and startups, so understands the challenges faced by large enterprises and how technology can help them gain competitive advantage. He has been an SAP consultant and led multiple business transformation projects across the globe.